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ORIGINAL (J

J.- A+lczch IN THE UNITED STATES DISTRICT COURT FOR --/<:1. .

THE EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

UNITED STATES OF AMERICA, Plaintiff,
v.

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} CIVIL ACTION NO.

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'ARTHUR J. TARNOW

OLD KENT FINANCIAL CORPORATION AND OLD KENT BANK,

M4GISTRATE JUDGE VlRGINlA M. MORGAN

through their Successors

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in Interest,

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Defendants.

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COMPLAINT The United States alleges:
Jurisdiction and Venue

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1. The United States brings this action to enforce Title

VIII of the Civil Rights Act of 1968 ("Fair Housing Act"), as

amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§

3601-3619, and the Equal Credit Opportunity Act ("ECOA"), 15

U.S.C. §§ 1691-1691f.

2. This Court has jurisdiction of this action pursuant to

28 U.S.C. § 1345, 42 U.S.C. § 3614, and 15 U.S.C. § 1691(h}, and

venue is appropriate pursuant to 28 U.S.C. § 1391(c}.

,
Parties
3. Defendant Old Kent Financial Corporation was a bank holding company, which was incorporated under the laws of Michigan in 1984 and was headquartered in Grand Rapids, Michigan, prior to its acquisition by Fifth Third.
4. Defendant Old Kent Bank was a wholly owned subsidiary and principal asset of Old Kent Financial Corporation.
5. Fifth Third acquired Old Kent Financial Corporation and Old Kent Bank through an acquisition approved by the Federal Reserve Board on March 12, 2001.
6. Fifth Third merged Old Kent Bank into First Third Bank (Michigan) as a result of the acquisition of Old Kent Financial Corporation by Fifth Third. The Federal Reserve Board approved this merger on May 14,2001.
7. Fifth Third and Fifth Third Bank are successors in interest to all assets and liabilities of Old Kent Financial Corporation and Old Kent Bank that were procured as a result of the acquisition and the merger described above.
8. Prior to its acquisition by Fifth Third, Old Kent Bank offered the traditional services of a financial depository institution, including the receipt and maintenance of monetary deposits, and the financing of residential, commercial and consumer loans. Old Kent Bank was established in 1853, was
Page -2-

,
incorporated under the laws of Michigan and had its principal place of business in Grand Rapids, Michigan.
9. At the time of the acquisition by Fifth Third, Old Kent Financial Corporation and Old Kent Bank conducted banking business primarily in Michigan, Illinois and Indiana.
10. At the time of the acquisition by Fifth Third, Old Kent Financial Corporation and Old Kent Bank were under the regulatory supervision of the Federal Reserve Board. Fifth Third and Fifth Third Bank currently are regulated by the Federal Reserve Board.
11. As of December 31, 2000, Old Kent Financial Corporation estimated its total assets at $23.9 billion, with Old Kent Bank maintaining an estimated $23.5 billion of those assets.
12. Fifth Third and Fifth Third Bank are, and Old Kent Financial Corporation and Old Kent Bank were, subject to the federal laws governing fair lending including the Fair Housing Act, the Equal Credit Opportunity Act and the Community Reinvestment Act, 12 U.S.C. 552901-2906. The Fair Housing Act and the Equal Credit Opportunity Act prohibit financial institutions from discriminating on the basis of, inter alia, race, color, or national origin in their lending practices. The community Reinvestment Act and its implementing regulations impose on banks a responsibility to meet the credit needs of the entire community which they serve, including the credit needs of low to moderate income neighborhoods.
Page -3-

,
Facts Detroit MSA Demographics 13. Detroit Metropolitan Statistical Area (hereinafter "Detroit MSA") , as designated by the Office of Management and Budget, contains the six Michigan counties of Wayne, Oakland, Macomb, Lapeer, St. Clair and Monroe. These counties are located in the lower southeast corner of the state. The City of Detroit lies within Wayne County. 14. Demographic data compiled by the U.S. Census for the year 2000 show that the African American population of the City of Detroit is over 81% while the African American population of the Detroit MSA - of which the City of Detroit is a part - is approximately 23%. The U.S. Census data reflects the racial segregation in the population, with the majority of the African American population residing in the City of Detroit and the majority of non-African American population residing in the surrounding suburban areas. In the most recent U.S. Census Residential Segregation Index, the Detroit MSA is identified as one of the two most racially segregated MSAs in the United States. See Map attached as Exhibit 1.
Old Kent Bank Branches and Business Strategy 15. Prior to 1995, Old Kent Financial Corporation
Page -4-

maintained a corporate structure that included numerous subsidiary banks, including Old Kent Bank. In 1995, Old Kent Financial Corporation consolidated its subsidiary banks into a single bank, Old Kent Bank, which operated out of Grand Rapids, Michigan.
16. Since Old Kent Bank first began operation, it has expanded its business, including that of extending credit for small business loans and residential real estate-related transactions, to substantial portions of the Detroit MSA. Old Kent Bank has engaged in a race-based pattern of locating or acquiring new offices. It has located or acquired new branch and other offices to serve the residential lending and credit needs of predominantly white areas but not those of predominantly African American neighborhoods.
17. As of January 1996, Old Kent Bank operated at least 18 branches in the Detroit MSA. Not a single one of these branches was located in the City of Detroit. As of March 2000, Old Kent Bank had expanded its business presence in the Detroit MSA to include a branch network of at least 53 branches, located in every county of the Detroit MSA. virtually all of Old Kent Bank's branches were located in predominantly white suburbs. As of March 2000, Old Kent Bank still did not have a single branch in the City of Detroit, where the population is more than 81% African American. See Map attached as Exhibit 2.
Page -5-

18. In March 2000, the United States notified Old Kent Bank of its investigation into Old Kent Bank's lending practices. Approximately six months after receiving the notice of investigation letter, Old Kent Bank opened a branch in the City of Detroit.
19. In operating and extending the scope of its business, Old Kent Bank has acted to meet the lending and credit needs of predominantly white residential areas (census tracts with a population greater than 50% non-Hispanic white) throughout the Detroit MSA, including Wayne County, and has avoided serving the lending and credit needs of majority African American neighborhoods, which are located almost exclusively in the city of Detroit.
20. Old Kent Bank claims that, prior to 2000, it did not do business in the City of Detroit because it did not have any branches there. Old Kent Bank further claims that it had not opened any branches in the City of Detroit because its policy was to only open or acquire new branches within three miles of existing branches. However, since 1995, Old Kent Bank has repeatedly failed to follow this alleged policy and has opened a number of branches in predominantly white census tracts that were more than three miles from existing branches.
21. Old Kent Bank declined to open branches in the City of Detroit as described above so as to avoid serving that community.
Page -6-

CRA Assessment Area Delineation 22. Pursuant to the CRA, each covered financial institution must delineate an assessment area defining the geographic region that it reasonably believes it serves. 12 U.S.C. §§2901, et ~, and the implementing regulations promulgated by the FRB, 12 C.F.R. §228, as amended (also known as Regulation BB). Under Regulation BB, a bank's assessment area must consist only of whole geographies, may not reflect illegal discrimination, and may not arbitrarily exclude low or moderate income geographies, taking into account the institution's size and financial condition. Id. at §228.41(e). 23. Instead of defining its assessment area in accordance with Regulation BB, Old Kent Bank circumscribed its lending area in the Detroit MSA to exclude most of the majority African American neighborhoods by excluding the City of Detroit. See Map attached as Exhibit 3. 24. From at least 1996 through 2000, Old Kent Bank has solicited and funded very few small business or residential real estate-related loan applications from predominantly African American census tracts outside its assessment area. 25. From at least 1996 to 2000, Old Kent Bank maintained a policy and/or practice of limiting the contact of its personnel responsible for advertising and soliciting applications for loans
Page -7-

with individuals and businesses located in the City of Detroit and/or other majority African American tracts in the Detroit MSA.
Old Kent Bank's Lending Activity 26. Analyses of the geographic distribution of the number of originations funded by Old Kent Bank demonstrate that Old Kent Bank has served the credit needs of predominantly white neighborhoods of the Detroit MSA to a significantly greater extent than it has served the credit needs of predominantly African American neighborhoods. Similar analyses of lending activity in Wayne County also demonstrates that Old Kent Bank has served the credit needs of predominantly white neighborhoods to a significantly greater extent than it has served the credit needs of predominantly African American neighborhoods in those geographic areas. 27. Between 1996 and 2000, Old Kent Bank originated 15,423 small business, home improvement, and home refinance loans in the Detroit MSA. Only 335, or 2.2%, of such loans were made in census tracts which were occupied by a majority of African American residents. 28. The U.S. Census reports that in the City of Detroit, over 11,000 (approximately 43%) of the more than 26,000 businesses are owned by African Americans. The 1997 Economic Census also reports that the African American firms in the
Page -8-

Detroit MSA generate over $3.5 billion dollars in revenue. 29. Old Kent Bank told African American business owners in
the City of Detroit that it would not make business loans in that area and it denied applications for credit from African American owned businesses in the City of Detroit and in African American areas of the Detroit MSA without explanation.
30. In 2000, Old Kent Bank generated 1,977 small business loans in the Detroit MSA, but only 87, or 4.4%, were originated in majority African American census tracts. See Map attached as Exhibit 4.
31. In 1998, Old Kent Bank generated 1,496 small business loans in the Detroit MSA, but only 20, or 1.3%, were originated in majority African American census tracts. See Map attached as Exhibit 5.
32. In 1996, Old Kent Bank generated 913 small business loans in the Detroit MSA, but only 19, or 2.1%, were originated in majority African American census tracts. See Map attached as Exhibit 6.
33. In 2000, Old Kent Bank generated 759 home improvement loans in the Detroit MSA, but only 31, or 4.1%, were originated in majority African American census tracts. See Map attached as Exhibit 7.
34. In 1998, Old Kent Bank generated 1045 home improvement loans in the Detroit MSA, but only 19, or 1.8%, were originated
Page -9-

in majority African American census tracts. See Map attached as Exhibit 8.
35. In 1996, Old Kent Bank generated 715 home improvement loans in the Detroit MSA, but-only 14, or 2.0%, were originated in majority African American census tracts. See Map attached as Exhibit 9.
36. In 2000, Old Kent Bank generated 982 home refinance loans in the Detroit MSA, but only 28, or 2.9%, were originated in majority African American census tracts. See Map attached as Exhibit 10.
37. In 1998, Old Kent Bank generated 857 home refinance loans in the Detroit MSA, but only 10, or 1.2%, were originated in majority African American census tracts. See Map attached as Exhibit 11.
38. In 1996, Old Kent Bank generated 156 home refinance loans in the Detroit MSA, but only 2, or 1.3%, were originated in majority African American census tracts. See Map attached as Exhibit 12.
39. Unlike Old Kent Bank, many banks and other lenders issued loans to persons or businesses residing in the city of Detroit.
Violations of Law 40. The totality of the defendants' policies and practices described herein constitute the redlining of African American
Page -10-

residential neighborhoods of the Detroit MSA thereby severely limiting the defendants' commercial and residential lending business. Their policies and practices deny residents of African American neighborhoods, on account of the racial composition of those neighborhoods, an equal opportunity to obtain credit. These policies and practices are not justified by business necessity or other legitimate, non-discriminatory business considerations. Old Kent Financial Corporation and Old Kent Bank's actions as alleged herein constitute:
a. Discrimination on the basis of race and/or color in making available residential real estate-related transactions in violation of the Fair Housing Act, 42 U;S.C.
§ 3605 (a) •
b. Discrimination against applicants with respect to credit transactions on the basis of race and/or color in violation of the Equal Credit Opportunity Act, 15 U.S.C. §
1691 (a) (1) .
41. The policies and practices of Old Kent Bank and Old Kent Financial Corporation as alleged herein constitute:
a. A pattern or practice of resistance to the full enjoyment of rights secured by the Fair Housing Act, 42 U.S.C. §§ 3601, et ~,; b. A denial of rights granted by the Fair Housing Act to a group of persons that raises an issue of general public
Page -11-

importance, 42 U.S.C. §§ 3601, et ~; and c. A pattern or practice of activity in violation of the Equal Credit Opportunity Act, 15 U.S.C. § 1691e(h); and 42. Persons who have been victims of Old Kent Bank and Old Kent Financial Corporation's discriminatory policies and practices are aggrieved persons, as defined in 42 U.S.C. § 3602(i), and have suffered damages asa result of Old Kent Bank and Old Kent Financial Corporation's conduct as described herein. 43. Persons who have been victims of Old Kent Bank and Old Kent Financial Corporation's discriminatory policies and practices are aggrieved applicants, as defined in 15. U.S.C. §§ 1691a and 1691e and interpreted through Regulation B, 12 C.F.R. §§ 202, et ~, and have suffered damages as a result of Old Kent Bank and Old Kent Financial Corporation's conduct as described herein. 44. The discriminatory policies and practices of Old Kent Bank and Old Kent Financial Corporation were intentional, willful and implemented with reckless disregard for the rights of African American business owners and home owners and those who are located in majority African American communities throughout the Detroit MSA. WHEREFORE, the united states prays that the Court enter an ORDER that: (1) Declares that the policies and practices of Old Kent Bank and Old Kent Financial Corporation constitute violations of
Page -12-

the Fair Housing Act, 42 U.S.C. §§ 3601-3619 and the Equal Credit opportunity Act, 15 U.S.C. §§ 1691-1691f;
(2) Enjoins the defendants, their agents, employees and successors, specifically all those previously employed or working as agents of Old Kent Bank and Old Kent Financial Corporation, and all other persons in active concert or participation with them, from:
(a) discriminating on the basis of race and/or color in any aspect of their business practices or transactions;
(b) failing or refusing to take such affirmative steps as may be necessary to restore, as nearly as practicable, the victims of the Old Kent Bank and Old Kent Financial Corporation's unlawful practices to the position in which they would have been but for the discriminatory conduct;
(c) failing or refusing to take such affirmative steps as may be necessary to prevent the recurrence of any discriminatory conduct in the future and to eliminate to the e~tent practicable, the effects of Old Kent Bank and Old Kent Financial Corporation's unlawful practices; including redefining its CRA assessment area to include the City of Detroit and to service the entire delineated assessment area without regard to any Page -13-

prohibited characteristics, specifically including an applicant's race or the race of the area in which he or she resides or does business; (3) Awards such actual and compensatory damages that fully compensate all the victims of Old Kent Bank and Old Kent Financial Corporation's unlawfully discriminatory policies and practices for the injuries caused by Old Kent Bank and Old Kent Financial Corporation, pursuant to 42 U.S.C. § 3614(d) (1) (B) and/or 15 U.S.C. § 1691e(h); (4) Awards such punitive damages to all victims of Old Kent Bank and Old Kent Financial Corporation's unlawfully discriminatory policies and practices for the injuries cause by Old Kent Bank and Old Kent Financial Corporation, pursuant to 42 U.S.C. § 3614 (d) (1) (B) and/or 15 U.S.C. § 1691e (h); and (5) Assesses a civil penalty against the defendants for the actions of Old Kent Bank and Old Kent Financial Corporation in an amount authorized by 42 U.S.C. § 3614(d) (1) (C), in order to vindicate the public interest.
Page -14-

FURTHER, the united States prays for such additional relief
as the interests of justice may require.
JOHN ASHCROFT U. S. Attorney General
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utive Assistant U . A torney Judith E. Levy Assistant U.S. Attorney Eastern District of Michigan Suite 2001 211 W. Fort St. Detroit, Michigan (313) 226-9770

Assistant Attorney General Civil Rights Divis·on
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Steven H. Rosenbaum Chief Timothy J. Moran, Deputy Chief Valerie R. O'Brian, Attorney Housing & civil Enforcement Section - NWB Civil Right Division U.S. Department of Justice 950 Pennsylvania Avenue Washington, D.C. 20530 (202) 514-3510

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o 5 10

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Old Kent Bank

1998 Home Improvement Originations

Detroit MSA, Michigan

. .. .

,

,
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. .

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Percent Black by
Census Tract
0-24.99 25 - 49.99 ~--- 50 - 74.99
_75-100
r-~ Water

Source: 1990 Census
o County Line o Detroit
o Other Cities

1 Dot = 1 Origination

Area of Interest

'i

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S

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Prepared by US Dept of Justice Civil Rights Division Washington. D.C.

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Old Kent Bank 1996 Home Improvement Originations
Detroit MSA, Michigan
\ }

Percent Black by

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Census Tract 0-24,99

25 - 49.99

·50 - 74.99

l1li75 -100
[- J Water

Source: 1990 Census

D County Line

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D Other Cities

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Prepared by US Dept of Justice OviJ Rights Division Washingtcn, D.C.

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Old Kent Bank 2000 Home Refinance Originations
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Percent Black by Census Tract
0-24.99 25 - 49.99 . -, 50 - 74.99
L" 75-100
[1 Water
Source: 1990 Census
D County Line D Detroit D Other Cities
1 Dot = 1 Origination

... Wayn•~_C=o-••
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Prepaced by US Dept of Justice CivIl Rights Division Washingtoo. D.C.

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1998 Home Refinance Originations

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Percent Black by Census Tract 0-24.99 25 - 49.99 ~;~ 50 -74.99 _75-100 ["1 Water
Source: 1990 Census
D County Line DDetroit D Other Cities
1 Dot = 1 Origination

Area of Interest

~

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Prepared by US Dept of Justice Civil Rights Division Washingtoo., D.C.

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1996 Home Refinance Originations

,
. . .1.

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_r-7l5W-a1te0r 0
Source: 1990 Census
D County Line
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1 Dot = 1 Origination

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,-,
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Prepared by US Dept of Justice Civit Rights Division Washington, ~.c.

, JOfnowl(I'8'7q!V~. OR\GINAL

JS 4411/99

3 ' CJ( CIVIL COVER SHEET COUNlYlN WHICH THIS ACTION AROSE: Wayne elll?

The JS-44 civil cover sheet and the Information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United Sta~es In September 1974.15 requlrc.d
f, \:, 4 r:r l' Q 1"7' for use of the Clerk of Court for the purpose of Initiating tha civil docket sheet.

U,.... ( U 6 9 I. (a) PLAINTIFFS

DEFENDANTS

United States of America,

Old Kent Financial Corporation and Old Kent Dank, through their Successors in Interest.
'ARTHUR J. TARNOW

(b) County of Residence of First Listed

(C) Attorney's (Firm Name. Address. and Telaphone Number)

R. Alexander Acosta, Assistant Attorney General

Jeffrey G. Collins, United States Attorney

Dcnal1 'of.

II.

,OF JI

• IIUn! (Place an ·X" In One Box Only)

~U.S. '~ Government Plaintiff

o 3 Federal Question (U.S. Government Not a Party)

o 2 U.S. Government Defendant

o 4 Diversity (Indicate CItizenship 01 Parties In Item 111)

county of Residence of First LIsted
NOTE: IN LAND CONDEMNATION CASES. USE THE LOCATION OF THE
IANni
MAG II~I,~ t: .1111 ~-1~qYlRGlNIA M. MORGAN

1440 New York Avenue, N.W. . "'tnn D.C. 20005-2111

III....11 I

' OF r

(For Diversity Cases Only)

PLA OEF

0 0 CItizen of This State

t

I

• t"AK lie.., (Place an "X"ln One Box for Plaintiff

and One Box for Defendant)

0 0 PlA OEF

Incorporated or Principal Place 4

4

of Business In this State

CItizen of Another

0 0 Incorporated and Principal

5 5

of Business In Another State

Foreign NaUon

IV. NATURE OF SUIT CONTRACT

(Place an "X" In One Bo)( Onlv} TORTS

FORFEITURElPENALTY

BANKRUPTCY

OTHER STATUTF.S

0 1 1 0 Insurance 0 120 Marine 0 130 MUler Act 0 140 Negollable Instrument 0 150 Recovery of
Overpayment and Enforcement 01 Judgment
0 151 Medicare Act

PERSONAL INJURY
0 31 0 Airplane 0 315 Airplane Product
Liability
0
320 Assault Libel And Slander
0 330 Federal Employ.,.'

PERSONAL INJURY 0 0 362 Personal InJury- 0
Med, Malpractice 0
o 365 plb'8S~'tI~ny.@" 0

0 368 Asbestos Personal 0

Injury Product

Liability

0

0 152 Recovery of Defaulted

UabUlly

0

Student Loans

0 340 Marine

PERSONAL PROPERTY

(Exc!. Vetarans)

0 345 Marine Product Cl 370 Other Fraud

0

0 153 Recovary of Overpayment

UabUlly

Cl 371 Truth In Lending

g of Vetaran's Benefils 160 Stockholders' Suits

0 350 Motor Vehicle 0 355 Motor Vehicle

0'-f 0

190 Other Contract 195 Contract Product Liability
REAL PROPERlY

0

Product Liability 360 Other Personal
Injury
CIVIL RIGHTS

Cl 380 Other Personal

Propeny Damage
0 385 Property Camage

0

Product liability 0

PRISONER PETITIONS 0

0 210 Land Condemnation 0 441 Vollng

0 51 0 Motions to Vacate

0 220 Foreclosure

0 442 Employment

Sentence

0

0 230 Rent Laale & Ejectment Iil 443 Houslngl

Habeas Corpus:

0 240 Torti to Land

Accommoda~on.

0 530 General

~~2f"m 0 245 Ton Product L1abUlt~ (
0 290 All Other Resl Property 00

40 Other CI~I R~

0 0

535 Death Penalty 540 Mandamul & Other

0 0

0 550 Civil Rights

0 555 Prison Condition

610 Agriculture 620 Other Food & Drug 625 DNg Relatad Seizure
of Proper1y 21: 661 630 Liquor Laws
640 R.R. & Truck

0 422 Appeal 28 USC 158 0 423 Withdrawal
26 USC 157
PROPERTY RIGHTS

650 Airline Regs,
660 Occupational Safety/HeaUh
690 Other

0 820 Copyrights 0 830 Patent 0 840 Trademark

LABOR

SOCIAL SECURITY

71 0 Fair Llbor Stlndln:ll
"" 720 Labor/Mgmt, Relations
730 Labor/Mgmt. Reporting & DllCloaure Act
740 Railway Labor Act
790 Other Labor Litigation
791 Empl. ReI. Inc. Security Act

0 861 HIA II 3951l) 0 862 Black Lung (923) 0 863 OIWC/OIWN (405(g)) 0 864 SSID Title XVI 0 865 RSI (405(g))
FEDERAL TAX SUITS
Cl 870 Taxes (U,S. Plaintiff or Defendant)
Cl 871 IRS-Third Pany 26 USC 7609

Cl 400 State Reapportionment Cl 41 0 AnUtrust Cl 430 Banks and Banking Cl 450 CommercellCC
a 460 Deportation
a 470 Rackateer Innuancad & Corrupt OrgllnlzaUonS
Cl 810 Selective Service Cl 850 Sacu rl~../Com mod Itlall
Exchange Cl 875 Customer Challenge
12 LiSC 3410 Cl 891 Agricultural Acts Cl 892 Economic Stabilization Act
Cl 893 Environmental Matlers
Cl 894 Energy Allocation Act Cl 895 Freedom of
Information Act
Cl 900 'ifJ:~~?~!tI= Under
Equal Accoal to JUltice
Cl 950 Constitutionality of State Statutes
Cl 890 Other Statutory Action.

/'!J, ORIG~[ (PLACE AN "X" IN ONE BOX ONLY)

Appeal 10

~' D D D ~~Instaled o D /

r

Original

2 Removed from

3 Remanded from

o ~ Proceedin

State Court

Appellate Coun

4 Roopened

Transferred from another district 510peclly)

6 Multi district Litigation

District 7 Judge from
Magistrate

VI.

OF ACTION (Clio the U,$. Civil Statute under which you are fUlng and write brief statement of cause,

. Do nol cite Jurlsdlctlonalstalules unloss dIVersity,)

The United States brings this action to enforce Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Act Amendments

N r r c: c: n QRR.4", T

~prtinnc;: 1flO 1~1fl 1Q "nn 'hI"' PI'III"1 rrl"'nit Onnnrlllnitv Art 1.t:;' T

~I"'rtinno;: 1flO I ~ 1(,01 (fl tn rl"'mp(h, rlic:rJ:.iq,inntinn in

VII. REQUESTED IN

0 CHECKIFTHIS IS A CLASS ACTION

$DEMAND

CHECKYESOnIYlfdam.nd~mptalnt:

COMPLA(NT:

UNDER F.R.C.P. 23

JURY DEMAND:

0 y~~,f~ N~

(Seo VIII. RELATED CASE(S) Instructions):
IFANY

.~/
JUrE

/Y I ?<

~

'DOCKET

(

/

\ --""""jNUMBER

Y DATE S- let· 0

PURSUANT TO LOCAL RULE 83.11

1.

Is this a case that has been previously dismissed?

If yes, give the following information: Court: ____________________________________

Case No.: __________________________________ Judge: _________________________________

2.

Other than stated above, are there any pending or previously

discontinued or dismissed companion cases in this or any other ~s

court, including state court? (Companion cases are matters in which

0

it appears substantially similar evidence will be offered or the same

or related parties are present and the cases arise out of the same

transaction or occurrence.)

If yes, give the following information: Court: _________________________________

Case No.: _________________________________ Judge: _________________________________

Notes:

 
 F I LED

HAY 1 9 _

CLERK'S OFFICE
j, S. DISTRICT COURT >:::II.STERN MICHIGAN

IN THE UNITED STATES DISTRICT COURT FOR

THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

CLERK'S OfflCf, DETROIT.PSG U.S. DISTRICT COURT

UNITED STATES OF AMERICA,

)

)

Plaintiff,

)

)

v.

)

04- 71 879
',I!~RTHUR J. TARNOW

OLD KENT FINANCIAL CORPORATION AND OLD KENT BANK, through their Successors in Interest,
Defendants.

MAGISTRATE JUOOE VIRGlNU\ M. MOHGAN

)

)

)

(:::

)

)

SETTLEMENT AGREEMENT

I. INTRODUCTION

CJ
c.;;o$

This Agreement is hereby submitted jointly by the parties to

resolve claims of the united states that defendants, Old Kent

Financial Corporation and Old Kent Bank (collectively "Old Kent" or

"the Bank"), violated Title VIII of the civil Rights Act of 1968

("Fair Housing Act'l), as amended by the Fair Housing Amendments Act

of 19BB, 42 U.S.C. §§ 3601-3619, and the Equal Credit Opportunity

Act ("ECOA"), 15 U.S.C. §§ 1691 1691£, by discriminating on the

basis of race in the marketing, solicitation and extension of

credit for business and residential real estate-related loans. The

united states alleges that the Bank denied equal credit opportunity

to persons and businesses in predominately African-American

neighborhoods in the City of Detroit, primarily by avoiding and declining to provide loan services based upon the racial identity of the geographic area they were located in, a practice commonly referred to as redlining.
The United States began this investigation into the lending practices of the Bank in February 2000. Fifth Third Bancorp ("Fifth Third") acquired Old Kent Financial Corporation through an acquisition approved by the Federal Reserve Board on March 12, 2001. As a result of this acquisition, Fifth Third merged Old Kent Bank into Fifth Third Bank (Michigan), a merger approved by the Federal Reserve Board on May 14, 2001. Fifth Third and Fifth Third Bank (Michigan) are successors in interest to all assets and liabilities of Old Kent Financial Corporation and Old Kent Bank.
The Bank denies that it engaged in race discrimination in its marketing, solicitation or extension of credit, or that any act or omission on its part as alleged in the united states' Complaint or this Agreement violated the FHA or the ECOA. Nevertheless, because the Bank's successors in interest share the united states' interest in providing for the credit needs of all businesses and individuals in the City of Detroit, they voluntarily consent to the entry of this Agreement. MoreOVer, through the agreements articulated in this Agreement, Fifth Third affirms its commitment to be an industry leader in lending in the City of Detroit.
2

There has been no factual finding or adjudication with respect to any matter alleged by the United States. Accordingly, the entry of this Agreement is not, and is not to be considered, an admission or finding of any violation of the FHA or the ECOA by the Bank. Rather, the parties have entered into this Agreement to expeditiously and voluntarily resolve the claims asserted by the united States in order to avoid the risks and burdens of litigation.
II. SUMMARY OF THE UNITED STATES' ALLEGATIONS
Prior to its acquisition by Fifth Third, Old Kent Financial Corporation was a bank holding company, which was incorporated under the laws of Michigan in 1984, and was headquartered in Grand Rapids, Michigan. Old Kent Bank, which was established in 1853, was also incorporated under the laws of Michigan and headquartered in Grand Rapids. Old Kent Bank was a wholly owned subsidiary and principal asset of Old Kent Financial Corporation at the time that Old Kent Financial Corporation was acquired by Fifth Third. As of December 31, 2000, Old Kent Financial Corporation estimated its total assets at $23.9 billion, with old Kent Bank maintaining an estimated $23.5 billion of those assets.
Prior to 1995, Old Kent Financial Corporation maintained a corporate structure that inclUded numerous sUbsidiary banks, including Old Kent Bank. In 1995, Old Kent Financial Corporation consolidated its subsidiary banks into a single bank, Old Kent
3

Bank, which operated out of Grand Rapids, Michigan. Since Old Kent Bank first began operation in the Detroit MSA, it expanded its business, including extending credit for small business loans and residential real estate-related transactions to substantial portions of the Detroit MSA. The United States alleges that Old Kent Bank, in the course of this expansion, engaged in a race-based pattern of locating or acquiring new offices, and that it located or acquired new branches and other offices to serve the residential lending and credit needs of predominately white areas, and not those of predominately African American neighborhoods in the City of Detroit.
The United States alleges that as of January 1996, Old Kent Bank operated at least l8 branches in the Detroit MSA and that not one of these branches was located in the City of Detroit. The United States contends that as of March 2000, Old Kent Bank had expanded its business presence in the Detroit MSA to include a branch network of at least 53 branches, located in every county of the Detroit MSA. The United States alleges, however, that by March of 2000, Old Kent Bank still did not have a single branch in the city of Detroit, Where the population is more than 81% African American.
The Detroit MSA contains the six southeast Michigan counties of Wayne, Oakland, Macomb, Lapeer, St. Clair and Monroe. In the most recent U.S. Census Residential Segregation Index, the Detroit
4

MSA is identified as one of the two most racially segregated MSAs in the United States. While the African American population of the City of Detroit is over 81%/ the African American population of the entire Detroit MSA is approximately 23%/ with the majority of nonAfrican American residents residing in the suburban areas surrounding the City of Detroit.
The United States alleges that Old Kent Bank excluded the City of Detroit from its assessment area under the Community Reinvestment Act ("CRA") / 12 U.S.C. §§ 2901-2906. Pursuant to the CRA and its implementing regulation promulgated by the Federal Reserve Board, 12 C.F.R. § 228.41(e) / a bank/s assessment area must consist only of whole geographies, may not reflect illegal discrimination, and may not arbitrarily exclude low or moderate income geographies, taking into account the institution/s size and financial condition. The United states alleges that instead of defining its assessment area in accordance with this regulation, Old Kent Bank excluded the City of Detroit, located in the heart of Wayne County, from its lending area and therefore excluded most of the majority African American neighborhoods in the Detroit MSA.
The United states contends that from at least 1996 through 2000, Old Kent Bank solicited and funded very few small business or residential real estate related loan applications from residents of the City of Detroit. The United States alleges that during this same time period, Old Kent Bank personnel did not solicit
5

applications from applicants in the city of Detroit to the same degree as from other census tracts in the Detroit MSA.
The United States undertook an analysis of the geographic distribution of the loan originations funded by Old Kent Bank. The United States contends that this analysis showed that Old Kent Bank served the credit needs of the predominately white neighborhoods of the Detroit MSA to a significantly greater extent than it served the credit needs of predominately African American neighborhoods. Specifically, the United States alleges that between 1996 and 2000, Old Kent Bank originated 15,423 small business, home improvement, and home refinance loans in the Detroit MSA and that only 335, or 2.2% of such loans were made in majority African American census tracts.
The U. S. Census reports that in the City of Detroit, over 11,000 (approximately 43%) of the more than 26,000 business are owned by African Americans. The 1997 Economic Census also reports that the African American firms in the Detroit MSA generate over $3.5 billion in revenue. Yet, the united States alleges, of the 1,496 small business loans generated by Old Kent Bank in 1998, only 20, or 1.3%, were originated in majority African American census tracts. The United States acknowledges that after the announcement of this investigation in March 2000, Old Kent Bank engaged in a concerted effort to improve upon this performance. The united states alleges, however, that by the end of 2000, of the 1,977
6

small business loans generated by Old Kent Bank that year, only 87, or 4,4%, were originated in maj ority African American census tracts, The United States contends that during this same time period many banks and other lenders issued loans to persons or businesses residing in the city of Detroit,
The United States contends that the totality of the Bank's policies and practices constitute the unlawful redlining of the City of Detroit because of its racial composition, The United States alleges that these policies and practices have denied an equal opportunity to residents of these predominately African American neighborhoods, based upon the racial composition of these areas, to obtain small business and residential real estate-related financing, in violation of both the FHA and the ECOA,
III. SUMMARY OF OLD KENT'S RESPONSE
Old Kent through its successors in interest denies the United States' allegations and maintains that at all times it conducted its lending in compliance with the letter and spirit of the fair lending laws and in a non-discriminatory manner.
Old Kent acknowledges that it did not have a substantial banking center presence in the city of Detroit. However, Old Kent contends that it was a relatively small and new market entrant in the Eastern Michigan market, having gradually expanded from its Western Michigan base, Old Kent asserts that the cost of entering a new market through the construction of new bank branches is very
7

high, and, therefore that Old Kent grew principally by acquiring a number of smaller community banks, which had branches outside of the City of Detroit. Old Kent contends that bank lending in the City of Detroit is dominated by a few large banks who were not suitable acquisition targets for Old Kent.'
Old Kent asserts that because it did not have a significant banking center presence in the City of Detroit, it was difficult for it to generate a significant volume of small business lending, particularly because small businesses frequently seek to obtain loans from banks with which they maintain deposit relationships. Old Kent asserts that, nonetheless, Old Kent's loan officers aggressively attempted to develop business from small businesses in the City of Detroit and in majority African American census tracts, and that the Bank was enjoying growing success in that regard.
Old Kent does not acknowledge that, as an organization, its record of residential lending in predominately African American areas within the City of Detroit was in any way deficient. Old Kent asserts that the lending activity of its wholly-owned mortgage lending subsidiary, Old Kent Mortgage Company, should have been taken into account in the United States' analysis. Old Kent asserts that Old Kent Mortgage Company, which old Kent contends
IOld Kent asserts that its Assessment Areas were determined in a fair and objective manner, by drawing circles of fixed radius around its branch locations and including all census tracts within those circles.
8

accounted for nearly 80 percent of Old Kent Financial Corporation's lending in the city of Detroit, was a predominately "prime" lender, making available particularly favorable credit products, including FHA and VA loans, throughout the city of Detroit. Old Kent contends that one of Old Kent Mortgage Company's three origination offices was located in a majority African American census tract in the City of Detroit. Old Kent contends that this origination office made a substantial number of loans within the surrounding community.
In sum, Old Kent asserts that it aggressively sought out business throughout the Detroit MSA.
IV. PROACTIVE LENDING INITIATIVSS BY FIFTH THIRD
The United States recognizes that Old Kent and now Fifth Third have undertaken initiatives to help meet the credit needs of the residents in majority African American neighborhoods in the Detroit MSA. In 2000, after receiving notice of this investigation, Old Kent opened two branches in majority-African American tracts in the Cities of Pontiac and Detroit. Fifth Third took additional initiatives upon acquiring Old Kent, which resulted in an increase in its proportion of small business lending in the city of Detroit.
For example, in 2001, Fifth Third chose Southfield, Michigan, for its Eastern Michigan headquarters. Southfield is near the Detroit MSA population center, and the office is located in a majority African American census tract. Also, since the Old Kent
9

acquisition, Fifth Third:
Has formed a Detroit Business Development Group Team to focus on the extension of small business credit in the Detroit area. This team includes one team lead, who was promoted in November 2002 and three additional business banking lenders who were hired since December 2002. Fifth Third will relocate the team from Southfield to the City of Detroit by no later than December 31, 2004.
• Has advertised in African American targeted media such as the Michigan Chronicle.
• Has acted as the co-chair of the With Ownership Wealth minority homeownership program in Michigan's 13th and 14th congressional districts, which encompass the City of Detroit.
• Has been one of three lenders in the City of Detroit partnering with the Detroit Housing Commission to provide financing to low and moderate-income families.
Has been a partner with the Booker T. washington Business Association in promoting a small business micro-loan
10

program in the Detroit MSA.
The United States supports Fifth Third's efforts to promote fair lending in the Detroit MSA and agrees that these initial efforts represent positive steps to address issues which are the subject of the united States' complaint. These actions are hereby incorporated by reference in the marketing and outreach plan described below.
V. MARKETING, OUTREACH, AND NONDISCRIMINATION A. Nondiscrimination
Fifth Third, as successor in interest to Old Kent Financial Corporation and Old Kent Bank, including all of its officers, employees, agents, representatives, assignees and successors in interest, and all of those in active concert or participation with any of them, will conduct its lending in the Detroit MSA in compliance with fair lending laws and will not engage in any act or practice which discriminates on the basis of race or color in any aspect of its small business lending or residential real estate~ related transactions, in violation of the Fair Housing Act, 42 U.S.C. §§ 3604 and 3605, and in any aspect of a credit transaction, in violation of the Equal Credit Opportunity Act, 15 U.S.C. §
1691 (a) (1) .
Fifth Third shall adopt the marketing and outreach plan set
11

forth below in this Settlement Agreement to ensure that its marketing and solicitation of, and processing of applications for, all forms of financing it offers in the City of Detroit provides all persons with an equal opportunity to apply for and obtain credit, regardless of race or color,
B. Marketing and Outreach Program Under this Agreement, Fifth Third shall implement a marketing and outreach program designed to improve its performance in meeting the residential and small business lending needs of residents of the majority-African American City of Detroit. Fifth Third shall use its sound business judgment and best efforts to ensure that its residential and small business loan products are marketed and made available in predominately African American census tracts in the City of Detroit to the same extent that they are marketed and made available in the non-majority African American census tracts within its assessment area. Nothing in this Agreement requires Fifth Third to make any loan that is inconsistent with appropriate underwriting standards. Rather, this Agreement requires these actions as a remedy for alleged past discrimination by Old Kent and is meant to ensure that persons throughout the Detroit MSA will have an equal opportunity to access and obtain credit, without regard to the racial composition of the area in which they reside or their business or property is located.
12

The parties agree to confer annually during the term of this Agreement to evaluate Fifth Third's progress in accomplishing the actions set forth below. Fifth Third retains the discretion to take any other actions which it believes are appropriate to achieve these goals without the prior approval of the united States or this Court, except as specifically limited in this Agreement. All provisions in this Agreement are to be implemented in a manner consistent with the safety and soundness of Fifth Third.
Fifth Third's initial plan for achieving its goals is set forth as follows:
1. Additignal Branch Locations Fifth Third shall open three new branches in the city of Detroit during the three year term of this Agreement, subject to obtaining the necessary permits and approvals from local government and the Federal Reserve Board. The location for the first of these branches has been determined and is in the core of the city of Detroit. Fifth Third shall present its evaluation of and preliminary proposal for the second and third new branches to the United states for its review within six months of the entry of this Agreement. Fifth Third shall inform the United states in advance of the precise location of any further new branch offices in the city of Detroit during the term of this Agreement. Fifth Third shall exercise its best efforts to open the first new branch within calendar year 2004.
13

2. Staffing and Training As noted at page 10, Fifth Third has hired three additional business lending originators whose job responsibilities are to focus on solicitations and originations of small business lending
in the City of Detroit. Fifth Third shall maintain these positions throughout the term of this Decree and shall relocate these positions from southfield to the city of Detroit by no later than December 31, 2004.
Fifth Third shall provide periodic training to all of its employees and agents with significant involvement in small business and residential real estate-related lending in the Detroit MSA to ensure that their activities are conducted in a non-discriminatory manner. This training shall encompass their fair lending obligations under the FHA, the ECOA, the CRA and this Agreement. Such training shall take place on at least an annual basis, and may be accomplished by lectures, staff meetings, video tapes, regulatory updates, outside speakers or other means. In addition, within 90 days of the entry of this Agreement, Fifth Third shall also provide training for all such employees and agents on the applicable provisions of this Agreement.
3. Advertising and outreach Fifth Third shall undertake an advertising program specifically targeted to generate significant additional applications for residential real estate-related credit from
14

qualified residents and small business loan applications from businesses in the City of Detroit. This advertising program shall include, but is not limited to, print media, radio spots and promotional materials.
Fifth Third shall remain free to determine the size, content, frequency and placement of each of these forms of advertisement. However, all of Fifth Third's print advertising shall continue to contain an equal housing opportunity logo, or equal opportunity logo, slogan or statement as described in the united states Department of Housing and Urban Development's fair housing advertising guidelines formerly published at 24 C.F.R. Part 109, attached hereto as Exhibit A. Fifth Third shall follow the guidelines of Tables I and II of Appendix I in selecting appropriate type size and other standards for advertising. All of Fifth Third's radio and television advertisements shall include the audible statement "Equal opportunity Lender". Alternatively, if a Fifth Third television commercial includes a written statement appearing on the screen, the nondiscrimination statement may also be so displayed, provided that it appears on the screen as long as any other written statement appears.
4. Consumer Education The parties acknowledge that financially educated consumers are an essential component of any sustained increase in Fifth Third's ability to achieve its goals of increased real estate-
15

related and small business lending in majority African American areas of the city of Detroit. To help identify and develop qualified loan applicants from the City of Detroit, Fifth Third shall fund credit counseling, financial literacy, business planning, and other related educational programs targeted at the residents and small businesses of those areas. During the term of this Agreement, the Bank shall invest a minimum of $100,000 to implement a comprehensive home-buyer education and counseling program. The Bank shall also invest a minimum of $100/000 during the term of this Agreement to implement a small business planning and education program targeted to residents and small businesses in the City of Detroit. The consumer edUcation required under this section may, in the Bank's discretion, be provided directly by the Bank and/or through a third party. VI. SATISFACTION OF THE UNITED STATES' CLAIMS FOR MONETARY RELIEF
In addition to the monetary commitments detailed above, Fifth Third shall invest $3 million over the three year term of this Agreement in the special financing program described below. This investment shall involve funding a special financing program in at least the amounts of $800,000 in the first year of this Agreement, $1 million in the second year and $1.2 million in the third year. Fifth Third may elect to accelerate its investment in the special financing program during the first two years of this Agreement, provided that it contributes at least $3 million over a three year
16

period. This investment, when combined with those other financial commitments discussed above, shall satisfy fully the claims of the United States for damages and other monetary relief in this case.
Through this special financing program, Fifth Third shall offer residents and businesses of the City of Detroit loan products at interest rates and/or terms that are more advantageous to the applicant than would normally be provided. Fifth Third shall thereby subsidize each such transaction by one or more of the following means: an interest rate below that which Fifth Third would normally charge, down payment or closing cost grants or assistance, or other financial aid.
Fifth Third retains the discretion whether to subsidize a particular transaction or to offer anyone or more, or all, of these forms of financial assistance to qualified applicants on an individual basis as it deems appropriate under the circumstances of a particular applicant. However, Fifth Third shall exercise its discretion in a manner which maximizes the likelihood that it will originate a loan to a qualified applicant, consistent with applicable underwriting guidelines and safety and soundness standards. Fifth Third Shall direct at least two-thirds of each year's loan subsidies towards small business loans and the remaining subsidy amount towards real estate-related lending. with respect to the small business loan subsidy program, the loan subsidies shall be capped at 2% of the loan amount, or $5,000 per
17

loan, whichever is greater. For purposes of the Order the definition of "small business loan" is defined in accordance with
the eRA regulation, 12 C.F.R. 228.12(u).
If for any reason Fifth Third fails to meet the abovedescribed minimum investments in any year, the remaining funds shall be applied to the loan subsidy program for the subsequent year to ensure that a total of $3 million is allocated over the three-year duration of this Agreement, and that at least two-thirds of the loan subsidy is directed towards small business loans.
No provision of this Agreement, including the loan subsidy program, requires Fifth Third to make any unsafe or unsound loan. During the life of this Agreement, Fifth Third shall assess the effectiveness of this program in achieving its remedial goal and, in its discretion, may recommend to the united States changes to increase its remedial effectiveness.
VIII. EVALUATING AND MONITORING COMPLIANCE
For the dUration of this Agreement, Fifth Third shall retain all records relating to its obligations thereunder, including its residential real estate-related lending, small business lending, advertising. outreach, branching, special programs and other compliance activities as set forth herein. The United States shall have the right to review and copy such records upon request. This Agreement shall not be interpreted to require Fifth Third to deviate from its ordinary document retention procedures with
18

respect to its business activities in areas other than those related to its obligations under the Agreement.
Fifth Third shall annually provide to counsel for the United states the data it submits to the Federal Financial Institutions Examination Council ("FFIEC") pursuant to the Eome Mortgage Disclosure Act. The data shall be provided in the same format in which it is presented to the FFIEC within thirty days of its SUbmission to the FFIEC each year for the duration of this Agreement.
In addition to the submission of any plans and reports specified above in this Agreement, Fifth Third shall make three annual reports to the United States on its progress fulfilling the goals of this Agreement. Each such report shall provide a complete account of Fifth Third's efforts to comply with each requirement of this Agreement during the previous year, an objective assessment of the extent to which each quantifiable obligation was met, an explanation of why any particular component 1 short of meeting its goal for that year, and any recommendations for additional actions to achieve the remedial goals of this Agreement. Fifth Third shall submit these reports within 90 days of the one-year, two-year and three-year anniversary dates of the effective date of this Agreement. In addition, Fifth Third shall attach to the annual reports representative copies of adVertising and marketing materials distributed in the city of Detroit.
19

IX. ADMINISTRATION
This Agreement shall be binding on Fifth Third, and any of its officers, employees, agents, representatives, assignees, subsidiaries and successors in interest.
This Agreement shall terminate in three months after the submission of Fifth Third's third annual report to the united States, with no further motion required by the parties. It shall only be extended upon written agreement of the parties or/ upon motion of the United states to the Court, for good cause shown.
This Agreement may be modified at any time, upon approval of the Court, by written agreement of Fiftll Third and the United States. The parties recognize that there may be changes in relevant and material factual circumstances dUring the term of this Agreement which may affect the accomplishment of its goals. The parties agree to work cooperatively to discuss any proposed mOdifications to this Agreement which one or the other reasonably believes will enhance the achievement of its goals.
In the event that any disputes arise concerning the interpretation of or compliance with the terms of this Agreement, the parties shall endeavor in good faith to resolve any such dispute between themselves before bringing it to this Court for resolution. The United States agrees that if it reasonably believes that Fifth Third has violated any provision of this Agreement, it shall provide Fifth Third with written notice thereof and give it
20

the event that any disputes arise concerning the

.Lnte~-pretat ion of or compliance with

te;r.ms of this

t

iee shall endeavor

good fai th to resolve any such

s

it to this Court

resolution. The United States agrees that if it reasonably believes

that Fifth Third has violated any provision of this Agreement, it

shall provide Fifth Third with written notice thereof and give it

30 days to resolve the alleged violation before presenting the

matter to the Court.

Fifth Third's compliance with the terms of this Agreement

shall fully and finally

1 aims of

United States

relating to Old Kent's alleged violation of the fair lending laws

by means of

ining on the is of race or

, including all

claims for equitable and monetary damages and penalties.

. I/JCL
SO ORDERED, this ~ day of ~~~~~_' 2004.

21

The undersigned hereby apply for and consent to the entry of this

POJ: Old

Financial nd Old th ugh
dB k r in

For the Unit States R. ALEXANDER

Anand S. Raman Skadden, Arps, Slate, Meagher and Flam, LLl'
1440 New York Avenue, N.W. Washington, D.C. 20005-2111 Tel; (202) 371-7000 Fax: (202) 393-5760

Steven H. Rosenbaum, Chief

Timothy J. Moran, Deputy Chief

Vale R. O'Brian, Attorney

Housing and Civil Enforcement

Socl

NWB

Civil Right3 Division

U.S. Department of Justice

9.50 Pennsylvania Avenue, N.W:

Washingtoll, D.C. 20530

Tel: (202) 514-3510

Fax: (202) 514-1116

odney Warner rcross & Judd LLP III Lyon reet, N.W. Grand Rapids, MI 49503-2487 Tel: (616) 752-2000 Fax: (616) 752-2500

JEFFREY G. COLLINS
Executive United States Attorney Judith E. Levy Assistant United States Atty. 211 West Fort Street, Ste 2001 Detroit, Michigan 48226 Tel: (313) 226-9770 Fax: (313) 226-4609

22

§ 101.50

• I08.~ Banetl".".

1109.10 Pu.,..,...

AppUC&nt.. foJ.llng to comply with The P\lt'pOIle of lhue r.,.wallon!; " th~ teQutremehl$ of these regul&tlol1£, to ....I$t •.U advertl!!lng medl•. ad..,.

the A.FHlo! '"I[Ulatl OrIS, Dr a.n JI.FltM pl&l1 will m&.I:. thtlIl.5elv,," liable to ....nctloN! ..uthol'ized by law. r.gula' tlon.<. .,.,.""men 1.';. rule., or POlIcI•• l!:overnJng the proirJ"lU'll pu",u&nl to
..Weh the IppUc.atlon "'aJ; tno.dt, including, but not linllLed to, denJal of further participation In Department.al prolT'llrnr; IUld rel.rTIIl to the Depart-
ment of Ju.otlce tor Bult by tile t1nJted State.. lor lnJ1JnCllve or other .ppro-

tlrilnJ 8.lencle.s -...nd all othrr Pt'r&Ot)!j. who we advertlJ;lng to malt., Print. or publish or t:aUM to be made. printed, Ot publJohed any o.dverttsement ..-llh
respect to lhe sale, rent&!, or tlnancln, 01 a dwelling. In COMplianCe ..-lth the requlremenl.$ 01 Tttle VlII. TIl.... rer'
uJatloru; also de""r1be the lllAtten; tllt:; Department will revie.., In evaluating
compliance with Tttle VIII In COIllleetion with I.l1YMUntions of compl&lnts

pr!.&t.e relid.

aUe(rln~ dlscr1Ininat<lry housln~ pt&c-

tlce. lrlvolvlnl advertising.

'AIT 1D'1-FAIR HOUSING
ADVERTISING

f 10'9.15 f:l.t.finllion•.

a..:.
lOil.~ POUt)'.
I ~ ,10 I"w"!><>,. . 1~15 DeflnltloJU. J Oil. I~ /leo""
lM'.2D U~ of words, ph..nt.Jt!:s . .Rnt..c~ce.s,
and YiIIu.aJ 1Jds..
lot.2~ SelectJve use ot t.dveMLsI.n.I' ml:'dJa or oonwnl.
lMi.30 FLir howlnr pOlicy and pra.ctJc~s.

(a) "SecretlLl'Y" tnea.ns the Secret.a:ty
01 HOU5InK and Urban DevelopMent. (b) "AsslstlUlt Secrttary" mean.' the
.......!stant Sectet.ary for Fl..ir HOUSlJli and Equal Opportunity.
(e) "Dweillng" m~..",. any Dulldin".
structure, or portion thereof which is
occupied 0.&, or designed or IIltendO<l tOt oceUPGJley as, 8. residence by one or
more famllles, OU'ld any vac&lit !&no

A.tn:l'ftr-u:

which Is elfered for l>J!Je or Ie.... tor

A'IJ"I"1IOJllTT; nUl' VJII, Civll Rlghts Al;:t of the con.5t.-uction or IDeation thf'reon

It<!. (u U..sC. 3001" Itq.J.

of ILIlY .uch bUUdlni .•trueture, or por·

rn Sotr').C't. 45

57J05, AUi. 2ft. UH:lO, unle:.."I.S

otheJ""';1.'iu noud.

D 209.5 Policy.

tJon thereof.
(d) "F'&m.lly" Inolude~' a single Indl·
vidual. (e) "Person" includes one or mOre in·

It IJ; the POllcy 01 the lJnJLed State~ to prov1de, w1thln constltutJonaJ Ilml· t.allon!. for taJr hou.~ing throu¥hout the Uhlt.ed States. The promlons of Tttle VlII of the Civil Rights Act of
1968 «2 U.S,C, 3601 e/ >09.) w&te It
u.n.I.w!uJ to discri.mlnate In the sale.
rent.a.l. and flnanclng of ho.u;lng. and
In the provision a! brokera<l~ $en'lces on ILCCOunt o! ra.ce. color. rellgion, £ex

dJvldualJ;, corooratlons. partnershiPs, .....oclations, I_bor orrMlzatlons, legoJ
reDresent..atives, n').utuAl compi.n.Jes.
Joint·stock companJe•. tru.st.s. untneo r· pol'1!.ted ori&nlultlot15. tn.tStee' In ba.nl<ruptcy, receivers, and tlduci&rles,
({) "To rent" l.ncludcs to I....e, to subl ...... to let and othel"'Nise to i!'1U1( for 8. cOll8Jdera.t!on the right. to occupy
prern.iJ;eg not owned by the occupant.

or national orlglll, Section 804(c) of
Tttle VliI of the Civil Rlght.s Act of 1968, t2 U.S.C. 3604(01, 114! a.mended, malLes It unlawful to m ..~., print, or

(I) "DIscr1mJnatory hOU6lni' prac' tic." tnellN IJ1 act that IJ; unlawful under sections 804. 805, or 806 01 Tttle
VIII of the Clv11 Rlihl.$ Act ot 1968.

publliih. or cawe to be me.de, printed. or publi.lhed a.ny notice, statement, or

t 11)9.16 Scop<,

adverti.l.rnent, w1th resped to the sale (11,) (k,wllL This part de.er1bes tne

or rtnlaJ of a d"'elllng, lhat llidlcates malten the Ass is t./Lllt Secretary w1U 1LIl)' preference, llmltatlen. or discrimi- review in fva.]uatlng c::oIDpilanct ~dth
nation based On race. color, religion. Title vln In connection wIth I.l1vestl·

sex or na.tional origin, or &n intention gatlons of cOll'lplaints &jleIPni dJs·

to make such pteforence, limitation at criminatory how;lng pro.ctiCeJi involv·

d~,crltn InMI on

Ing advertisIng. Use of these criteria

320

Chop'.' I-OHic. of A..t. at]
wW be oon.sldered by the A.; Se<!ret.an' I.l1 mILking determln., reo;olve e<:>mpla.lnw aJ.leging dis<; tlon In adVertising.
(J I Advcrti.t;ng =dia. Thi.l PI vld... crlteria for us.e by ad., modla In determJn.tng whN: acq,pl ILfld publt.sh advertising In.c rues or rental Il'lUl6&Ctlol'1.S thue criteria will be consIdered Aul.stant Seeret.al'l' I.l1 mlLk.ing mJn.atlons to resolve COtnplaJlit.
ing dJs.crim1nat.ion in ILdvertlslns
(2) Ptno7'L$ pla.cinll a.dtlcrtis~ A fallure by PO""'''''' placing o.d' mont.. to comply with the "rovi> th1s part ",hen found In coru with the inv...tlntion of a can aU,png the m.lLklng or we of dl
nAtory a.dvertLsement..(). wilJ be l
tor eonclud.1n.1l that" violation
tion 804 h ... O<>CUlTed,
(b) A./,hrmaliv< anvtrCu,ng ,
Nothing In tw. pwt shall be con
t" reatrict o.dvert!.'ltl8 oftort. de to attlll.C( persons to dwelUn! would not ordJna.rlly be e'pee
apply when such ef!otU; are pu to iIJ1 olHnnatlve marketing Pt or U.ndHt&l!:en to remedy the en prior dlbCrlmJn.tion In cone with til, a.dvertisinl{ or mar••t
d ....lling.,
'1&g.20 u~ or ,.ont., phruu, WI
*.nd ";.1.Ia] aJdll,
The foUo"'ln~ words, phM!.Se,
In bois. iIJ1d fOI1llJ! typIfy those
otten used re:;ldentjaJ rea.l e!'tl vertl.sinlj to conny either ov t.a<:lt disctlmlnatory Intent.. Thl Bhould. theretore. be avoided In to eliminate their dlscrimD elf""t. In considering B corr under Tttle VlII, the Asslst.ant Uu-y ..ill nOrInlL!ly consider Ihe these and cornporBbl~ word.<. PI BYt.II boL! , and forms to indicate a bl. Viol.llon of the Title fUld Ul ll.sh a ne-ed for .eektng re.olut the complaillt. If It Is apparent
the context o! the usage thot du
natIon IIIlthln the lJleanlng of th, Is lIkel~ to result.
(al Word.! de,cMpliue 0/ du; W:hdlottt, and tmanL Wlll!e t home, Colored horne, J ....lsh liispanlc r.sldence.

TeruJatiOI1.$ ~
all adveTiislu media, &.dYer· ...eneles' Il1)d ~II other peT$on.s I8e a.dvertl$lng to m"'e, Print, or h or ,",use to be m&.de, Printed, bUsh"d rillY &.dv.rllselllent W1th 1 to the sale, rental, Or tlnlU1eln~ '''ell!ng, In cornplill.nce with Ihe enlen!.s 01 TIlle VBZ. The.e rei'
tIS ..10<> d• ."ribe the I1l&ttel'S thls ttnent ..ill review 10 eva..luatlnll lLnce with TItl. VIII 10 con.n~1th Inve,ti~atiol'\S or complalnlll 11 I1Uicrinlinatory hOll.$lng pr&,e. lvolvlng advertISing,
i ~nhition8,
Se<retliJ"y" rnel!J1S the Secretary
IlOln~ a.nd Urban n..elopmeflt
'AtloLst.ant Secretary" rnea.ns the m! &<:ret.a.ry lor F'a.ir Kou.olng IUa.! Opportunity, Dwelllnr" melU15 IlIlY building. lI'e, Or portion thereot ~'hlch Is .d a.s. or designed or Intended :UlJILllCY as. a residence by one or fa.nillies. and any vacant land is offered lor we or lea.se lor
nstructlon or location thereon meh buUding, structure, or por· ,ereof. Family" Inc! udes a .ln~le lndl·
?erson" Includes one or more in, Wi, corporatloflS. partnerships, tlol1&. I.bar organiz.&tIOnll. leiiLI mutlves. lnutuiLI eomplU'Jles, <>ck complU'JleJ;, trw;t.s, Uhlncor· j orgo.niz.&tloru. tflC!tees In
roptq, receivers, &.nd (Iduclules,
rent" Includes to leILS., to e, to let Md otherwise to ,-rwt 'TlBla.."Uon the righ t to occupy ~ riot owned by the occupant. 'Dl.;cr1mI,,~ tory how;lnr pra.c· lelLllll an &<:t that 1& unlawlul
""tlorn 80~, 80S. Ot 806 01 TItle
lhe Clvl! Rlght.s Act ot 1968,
8<0.,..
"""raL ThL, part describes the o the A.s.s Is t.a.n t Secrt t&ry will In evaluatln/1 complla.nce with
nl In conn~tlon with In~e,tl·
or C<lmplo.jnt.> all.ring dl.<i· tory hOUBln/1 pra<:tlces lnvolv· ertlslns. Use 01 th••e erlJ,erla

0' ......,. cr C~apt.r I-Off...

hq., ("ual )"""'ity

§ 109,20

'111m be conslder~d by the A.s.sl.<it.snt (b) Wdrd-t ;ndicQ/ive oj NIce, C010T, "<iIt Secret.a.ry In In''';ng detertnlnatloll.s te ",Zigiol'l, ,e:t: or nlllioniJ.l on";n,

resclve cornplalnt.s lLlleglni dl.;critnlna- II) Race-Negro, BI~k. CaucILSlan,

tlon In &.dvertLslns.

Orienta.!. Arllerlcan IndJa.n,

II) Adveri;.nng ~dia. Thl.o put pto- (2) Color-WhIJ,e, ala.ck, Coloroo.

\'ides ctlt.elia lot ~ by ILdvert.Islne (3) &liQ'i07l-Prote5tant, ChrUtlan, media In det.emili\ing "hether t" c ..thollc, Jew.

accept and publish J.dvertl.6ln. rep.j'"d· (i) Nntional o"';gin-Mexico..n Anlerl. InJ 11&1.,. or rentAl t'""'"""'ttD"'. Use or can, PuerT..o Rle&n, Phillpplne, PoUsh,

these crlter!a 1t1111 be collSldered by the Bunrruian, Irtsh. I t.&.I ian, Chicano, Af-

)\..IJSlstant St<:reta:ry In mulnJ dete-· tle&n. RLsPlU'Jle, Chlne$c, lndiJu\. mlnAtJOtlli t.o resolve oomplalnts IIlItk' Latino.

InJ dJB<:rllll1I1.tton In J.dvertlstng.

(5) S.,,-the uclu.,rve use 01 words

(2) P,,,,,olU placing a.dvert'-'t'tI1<mu. In ILdvertlJ;ement& Inclu<llt1.tr thOS<! In.
A fallure by persons placln, &.dvel\!.K· volvtni thr rent.aJ ot gepa.rat.e un.lt.. In

lnenlB to oomply with the provilllolll! In • slncle or multl-tlUllily d"ellln, SlatthLs J)art ",hen found In connt'Ctlon ~ or tendin, to lwply that the hous-
with the Inveotle:ation of .. cornplJ.!nt tnl being &.dvel1.i.!Ied is av&l!..ble to per.

lIlIerine the malllns or USe of d!z;cr1n\I· ",n. of only one sex •.nel not the other, ""ton &dvel1.1.sements wfIl be a buls except wher~ the shllJ'inl of Uvlne:

for coneludln, that a vtotation 01 sec· ....... 18 Involved_ Nothln, In this sec-

tion S04 h ... OC<:UtTed_

tion Ihall re,ttict ILdvertlsernent& 01

(b) Affirm"/i,,. ad""tuinll t/jom. dwelling. used exclusively lor dotmtto·
Nothln, In thls pan sh&ll be cOlUtrued n {""Wtl"" by educational In.5t1tu·
to r..trlet &dvel1.1s1ng eflorl.s designed t10tlli,

to attl"&Ct POrions to dweUInBl; whO (6) Ca/.(;h 'IDOrd-t-WorcLs ouch"" r;,.

would not ordlnlLl'tiy be expected to '!rieted, Ihttto, IIIld dJsa.dva.nlqe<1

apply when such cHor!.! are PUTSlllIJ1t should be aVOIded. AlIJ<l. wotcLs lind to an aI!lrm.,lve marketlllll: prOirlLm p~s U&e<! In a dlBcrlminawT}' oon·

Ot undenaken to rem.dy the etlecls of \.ext should be avoided, •. B., "pr1vate",

prior dJB<:r1mJnatlon In connection "lntegnted", "tra.dJtlon.&! ", "board ap-

with the &dvettl.oing or marketing of prov..I" or "membenhlll appl'lwaI".

dwel1U\ll:s,

(e) SvmboLt or i<>9o/l/1Hl.!, SymbolB or

o10'9.20 Uk of wonh, pttra..H. -.rni.rnc:n,
and .,.iluaJ aid"

logotypes which lwply or lugge.t """'. color, relll[1on, .rex, ot Il&Uon.&! ori&:ln.
Id) Colk>quial'-'m:!. WotdB or llh1'Me-B

The folloWing worcl~, ph""e•. SYm' Ui8ed rer/orully or loca..IIy "hJch Imply bois, and lorms typllr th"". mo.t or IUU.. t ner, color, rellr/on, &ex, Of

olten used in residential real ••late &.d. natIonal 0111'10.

vert1stnliC to convey either overt or
t.sclt clJscr1n\,lnatory lnt.ent. Their UU
.hauld, theretore. be avoided In order
to "Ilmlnate thell' dlscrtmtnar.oty
etled, In coruldeHng I. c.amplalnt under TItI~ VIII, the A.s.!&t&nt Se<:te·
ta.ry It11lJ DOn:ually coo.sldt.r the use of the$t a.nd compa.r-t.ble ""ordB, PhrlL$es, symbols, and fOl1llll t.o IndJcau. • po&Sl·

(e) Dir<c(io,,", to ",aJ .,t41< lor ,ole Or """t (lUe 0/ "",PI or ICrltUm in'/,""clio".J). Direct/OM ~ Imply A dlscriminatory preference, llmlt.atlon, or exclw.'!lon. For example, re!ereneet t..o t~aJ e.state location made In termJI of "",,1 ..1 or nt.tloru.J ,r1i>1n 81en!fleatlt
JlLlldmarb.•ueh ... ILl1 exlJtlni b!JLc1t de'Clopment (Alima.! to blacb) or an

or ble violation 01 the TItle o.nd to e$tab· exlJtln, development known for Ill! In·

It.h a need lor seeking re8olutlon

elll.!ilon of minortties (81gn&) t.o whlleo)

the complaint, U It Ls apparent from
the eonte~( 01 the us.aae that dl.;crlmJ· nation 'iVlthln the melU"j1ng 01 the TltI. Is likeh to re.sulL

./lowd not be """d. S"""Ule c11tectfOllll ..hlch ma.te fl!ference to • racial or haUorW oriffin ohrnltleant uta. may
Indlcate a prelerence and Ihould DOt

(al Word.r wCrtptiw oj dw.Uinp, be UMd. Rd~renc~ to B eyn.q:ol'Ue,

I<lndiord, and kna,,~ Whl\.e private congrewotion Or parish may aJ.oo Indl·

home, Colored home, Jewuh home, ca\.e .. reUgloUli preference Md Ihowd

li:l.<plU'Jlc re.idence.

not be URd.

321

§ '09.:15

In -tr.." (/ocction) ducriplio",
Name.. 01 It.efllU,,,, which eat.!r to •
putlcular racial, natlo!UIJ origin or re·
IIlriou.s iTQ\,lP such .. country club or
private school designations. Or name. or f...:lllt1e. ",hleh are used e~cluslv<ly
abcynobne ea.nau...,..~ah, ou]d not be used to de·

complementary advertising C&IlIpiLlgn
that lB dlrll<:ted at other 11'0ups, Another exa.rn.~le m&y involve use of ra-
cially mixed mod.'" by & developer to
advertJM one development IU1d not
others. Slrnilo.r can !:DUost be exere1.sed lo a.dvertiliinr In pub.lleatlons or other me(Ua dlrl'Cted at one Particular !lex.

I J 09.%5 S«JediY~ llH of Il.cht't1Jlihl' tTU!'dia or wnl.t"l.
The •• Iectlv~ U~ 01 Advertl>lng mediA Of content when p&rt.lc:ula.r COm~ binatlons thereof Lre IJMd exclusively

Such ""Ieetlve advertising may Involve

.ex the USe or human Inodel$ or memben

of only one

In displays, photo.

frap"" or dr....lnlrS to indicate prefer.

ences for One sex or the other.

wlth re81'<"'t to varlOu., housing devel' opmenu Or sites CJIJ) lead to d.lscrlml·
n.atory resulU; and may Indicate a vlo' latlon of Tttle VIII, For eumple, the u.se of Engllsh hmg"Uage rtledil alone Or the exclusive USe of mews. catering
to the majority population In I!J1 &rea, when, In such are', there a.re also
avallable non·Engl",h 1a.nlr'lage or other mlnority media, may have dLs·
crlInlnAtory ImpAct SimillU"ly, the oe· leetJ~'e use of human models in adver· tuemenls mAy ha.ve d.1.s.cr1m1natory
Impact. The loUowln, Are addJtional uo.mr.>le,; 01 the ~le<:tlve use of advet· tloin, which may be dLscrlrnlt1atory:
(a) Stlrctive gt'oQ'1Uphic adl~ertUt·
t'rl..&ntJ. Such U]ect.l .... e use may lIlVolve

D10'9.30 F ..it houlil"l' poolicy and "ra.rtica.

In the investigation of compl&ln~,. the Assistant Seerel-/Lry wlll con.lder the lmpieme014tlon or lair housing polh:::lt:; and pr&etices provided in thL"i.
section IL$ evidence of compliAnce with the prohibitions OJ<llln.st dl>cr1mina. tion In advettl.slng under TItle VIII,
(il) Ule 0/ EQua! I/OJJ;Ji"p Opporluni.
ill lo"otJ,fJ)e, Jtl1l~t.. Dr "logan... AU
advertising 01 re.ldentlal real ,,-.tat.

for sale, rent. Ot linfUlCing l!iihould con-

141n an eQua.! howlng Opportunity 101'

otype, .tatemeht, or slogl"l1 a.s a me&n.S

of t'duco.ting the homes."UtI. that the property Is Available

ptoublai.uc

person... te8:i1.rdJes.s Dr race, color, reli-

Ihe Gttalelric pllLCt'tt1ent 01 billboards; gion, sex, Or naUonal origin, Th.

brochure advertisement.s distMbut.ed choice of 1010tyl'<', statement or

"I thin • limited Jeolfl"aphle area by slogan wilt de"end on the type 01

sp"", hand or in the maU, advertISing In PIIJ. media u.sed (\'lI;ull.l Or audJtory) and. In

tlcular aeOi!l1lphlc covet"", editions of

advertising, on the st.re or the

maJOt metrOPOIit.a.n new.papers or In advertl$ement, Table I (st><: apl'<'ndlX)

newspapern 01 limited circulation lndlcates sugg"sted USe or the 10,0'

..hleh lLre rnaJnly advertlslng vehlclcs tyl'<', .14tement, or slogan and st.re 01
for rea.chlng .. pa.rticular segment. or lOgotype. TlLble lI'(li~e appendfx) c:oo-

the corrununJty; or dJlsplAYS Ot an. 141m copies of the smrJe.ted Equal

nouncements ilV&.ilabJe only in selected HOUBlng OpportUIllty lorolyl'<', I14te,

&ales ollices,

ment a.nd slogan,

(b) S.I<!ctlve .... 0/ 'Qua! opportuni. (b) U.. 0/ human mod.t., Humin
tv 'logan or /OllO. When placing advet. models In photographs, drawing,;, or

tl.!lemelJt.&, such .fleetlve use may In· volve placing the equal houslng oppot.
tunJty slogan or 10iO In advertLslng reaching some ieogtaphlc atell.S, but not olher.;, Or with respecl to some

other i!l1Iphle ~hnJQue$ may not be
u.ed to Indicate exclualven... on the basis or race, color, ""Ulrion, M:~, or na·
tlonal OMIin. If models are used In dis· play advertising eamplLigns, the

pro"'"rtles but not "thern,

mOOels .hould be Clearly definable ...

(e) StItch"" "'" of human 77lO<U/J rcL>On.bly repres.min, majority and

IDh.<n conducting lin cu/verti.J'7lg cam. .1><111711. Selective a.dvertislng mAY in· volve IIJl advertising campaign u.,lng
human models prtm&r1ly In media that c.at.,r to one radal or national orllrtn
segment 01 the popula.tlon without a

mlnority I1'Oups In the metropolitan
lIea and both .ex••, ModeLs, i1 u..ed. should portN>~ persons III an equal
.oclal setting IIJ1d IndJr.ate to the ,en·
eral public that the housln, is open to
all wJthout rcgud to tace, color, tell·

322

rlon, lex, or natlonal aMlin, ror the e~chjJ;lve USe of lfI"oup.
(e) COI!<:n:lue of loca! la. the F.Qual Housing O"portu ment Is w..d, the advertise a.I.tIo Include & statement reg eoverage 01 &:lY lOcal faIr I human Mints ordlna.nce reg: crimination in the "al~, rel n&nelllg of dwellings.
(d) Notification oj lail J>Oli~-( 1 J Emp/bye,,-,. All 01 a4vertiJiement.:s, advertL'l eles, and firms engaged it,
rental or financing ot n should provide a printed COl
nondio;.crlmlnMory policy to p)oYe<l IUld oWeer.
(2) CI'-ffl/.!J, AlJ publishers tI..selDent.s and advertising should post A eopy 01 the crimination policy in a consl caUon wherever .per.mns pII Usinl and should have cop Ie: t<>t AU firms and persoru u ~dvettlslnil services,
(3) Pub/iJllers' notice. AlJ I should publish at (tIe b,glJlJl tcal .sLate advelilsing ,ecUo .uch 11.5 lhat. appe&.ring in (ser appendlx), The notice CI l st.&.tement regarding the CI a.ny loclll t.ll" housing or hw ordina..nc(J tr;>garding discrirn the sllle, rental or tlllllJ'lcin! IngS,
MJ>ENDIX
The toUowlnl true!! l.ablel!i IDa
rutde tor the u.&e ot the EQuiJ t
porturuty IOiO't~. iit..B.U:m~iJt. publl.iher's notice lot ..(:h:,ert15i.r1g
roN", I
A Simple tonnuJll C&J:I i'Utd!' th~ &dvcrtls.er tn u.s'na tht EQual }j pooriunJty IOiotypoe, aut.e01tpt. Qr
In all I>p.cf advcttl1lltl.¥ (ldvt!rt
wlLtl)' Prlnted tD~dj, "uch u: nt:'
tn..r..p..tine£) thll; tollo'Mni' !l,t.ndJ be Uied:

a.drertL,ing campaign
at other gY<,lI.lPS. An· r e:x;amplt may involve use 01 r. f mixed mudels by Ito developer to rtL'iC' one dt· ... elopment Uld not r-s. SlmiJa.r CQ.T"(' must bt tX~rci.5ed
Ivtrtisini': 1.n p~Jbll("..a.tions or other 1& dit(':'(:ted at one paJ'ticwa.r sex, I selective a.dvertising n'UlY Lnvolve Uie of hwnatJ rnodels 01 mern~rs ,nly one sex in displays, photo. h.s or drawings to indicat..t t;lreter· it. Cor one sex or the other.
..'. 0 }'air hO-..lllinJ poUt,. and ~ra.ttjC't8.
the lnvestig.ation of compla.ints, Assi..sta.nt SeCreUlI)' will consider
hnplemetlttltwn of fair hou.."ioing
:Ies and practices provided in Lhi.~ on as evidence of compllEl,1lCt.> with
~t[)hibit.lon5 agAinst dL"OCtlJ'ninB.-
In advertismg under TItle VlII
j (lse of EljtLal HOlLStnQ OpportuTd-
,~ot~pe, ,totem{',.~ Or ,logan. All rtlslng of residential real estatc ;.ale, rent. or financ:inl!1 ShOIlJd cona.n equlll housing opp(;rtunity log· 'C, statement, or sloga..n 8.S 8. IiH'tBJ1S ducatlng tht hom.... kin~ public the property 10 aVllllable to all ons reita..rdles.s of r&ee, eolor. feli· • S{~x, Or national ori.no. The ce of lOIl(!lY,"", st.at.ement Or IJ'I w111 dtpend on the type of (.8. used (v!...c:ual or atlditot"j'} and, in e u!vertlsing, on the slu of the
rtls.ement. Ta.ble I (see ILPDtndJx)
~te.s su~ge5ted use of the ]08:0. st..atement. Dr sloga.n &l1d sLu of typE', 'I'u.bJe II (see appendix) con-
I COIII~s of the .unesled Equal 51ng Opportunity logotype, 6t.ate· t and slo~iIJ1. I U.3e 0/ human mode~. HwnB.Il el, In photog-raphs, dr...1ng., or r gnphic l""hnlQues may nOl b..
to indlcB.t.e exclu..sJve.ness on the
i of r&C'f, color, relliion, sex, or na· 1I oli,ln. If models are ,,"ed In dJ.s.
a.c!vertlslng 1WlJpalrru, the elo should b.. clearly deflnable ... mably representlrla maJority 1U1d >rlty groups In the fIlNrol>Oli1.&n and both sexes. Nodeb, jf lUl!"d, Ild portray pen;oru In an equal " "'llit'S ~"d Indic"t,., \.0 the gen· public that the housing ls open to .1thout. regard to race, color. rell-

Chapt., I-Offi.. af Au'. $o<y., Equal Opportunity

,ion. sex, or na.tionai origin. #..lid ts not
for the exc)ush'f use of Ohe !u~h
IITOV!:> ,
(e) COIJ~rQ~' of locC1l law,. W'htre the Equal Hou.,lng OPl>ortunlty sto\.(!me-nt 1.s used, the &dli('rttsement may wo Include a stau.ment regarding the cove~e 01 any locaJ fait hOu>1n1/ or hum.t.n right.s ordinance rei/&.rdlng diser1Jnlnotion In the sale, rental or IInanclng of dwelling:;.
(d) Notification of fair Itou.!in~ palicV-( 1) Emplove". All publishers of advertisements, u!vertlslng "gencles, and Ilrrru engaged ill the sale, rentaJ or fln&ncrnR of relLI It.st.at.eshould prm1de a printed copy of their nondlscrlroln.tory policy to .II.Ch em·
ployee a.nd offIcer. (2) 0"",1•. All publlshers 01 adver-
tiBement.s Ilnd &dvertising agencies shou.ld post • copy of their nondisCtlmlnMlon policy In a consplcuolJ!i IDeation wherever pernons place adver" tislng and should have copies 8vaU.ble for ;JJ firm.s and persons using their t.dvertlslnll ""nic••.
(31 p,.bl"lter,· notice. All PUbhshers should publish at the beginning of the real f':st.a.te advertlsing seetion a notice such .., that appe&ring In Table III ts.. appendix 1 The Mtlce c.an Include l\. !>t.s.t.ement rt&ardinB the (:ovcr-age of ~ny local l&lr housln.i or human rl,hts ordlnlU1ce regardlnK discrimination In the jale, rental Or hnancing of dwell. lnlrS.
Th~ (OUOWLhi three tAblf!'..s tDiY IIoCrYe u II. iU1de (Of tho(" I.JM 01 thf' E.quaJ Howl..n.i OD' pCIrtunJt)' IQ,ot~. ltit..cment. oIIiOIrt.n, IJ'id pubUsher', notlC"(' for t.dv.:t'tJ.ain.:

~ ~ or IW;oIIt
""~iJC""'''''''~
,jj ~ I"'oChId Iit;I "" poiII!QII l ... INIn'~1"\I:t>M

.. ,
1 :-.1 ~,~
,'!

In Il-O)! otht'f t.d .... ertisel'D\.nt5, II othtT lo&,O-
t:rp.e$ a..re \.t&t'd In the ~VtrtJ&t:t;r)ent. the-fl tn, EQuol lIo~ OpportunJly loc:o moUld bt= of a ai:u .t le.ut t<jl..laJ l.o lhe l&r'~\. (If
a.r,the QUH!~ IOlot)'l)e;fi.: II 11" other lo,otypa wed, then the l.)""p£ IhOllld be- i)qld dJ..s •
play fate 'It,IhJch is clUfl)! V15lblf:. Al~rn..a.. tJ\'dy, When nu other I08"oty~s 1lIIP. u.t;..ed, J
to 5 l)('rtl'nt of an Ld'!f'rtiM:ment may bt:o de\I(l(.cd t..a a lIi...atement 01 t.he !!qua.l how.in, OPpori.W'llty polley.
In Ip"-Ce il.dvertlJsinl whtch is les.s lhiLO 4 eoJumn lnchl'!::l!i (one e\1Jurn..n " lnchi!'"...6 lona or two rolumn.s :llnches Ion,) of ... p..,t 1n at.u thl" EQUtJ HOWiln, Opportunity aJolfB.n shouJd be ~d. Su(!h Ld\lf'rtllkment.s mil:': bot:> ITOUped with other ~\It'rtLMrn!'ntli under .. captlon .,h.lch .sLat..c- that tht' howa.n-i: lJ; .."1!L.11able to all wHhout rt'a'ud t.o ~, COIOI, reilgion. II.('~ Qr n..tJol'I.LI ort.tn.
TobLt II
nlu.'1t'l'l.tjQn..6 of LoCOlYpeo, Stal..elllml, and 810'-"0 EQuAl HOtalhll.olOly-pot;

--

Tabk I
.A almplj!l rarmul .. c:t.tl i1Jlde thl! rf-.J e1It.at.t: a.d\lett15t:r In uai"l thoe .£QuaJ HowlJl.i Oppati.u.nJty !Olotype, .t.at.ctnent, or .IOi'M,
In aJ..l U)~t! adv!rti,alr41 (&.(.iYertlJilnl In rer 1;l1u1)1 Pr1.ot..cd rnroJa 4II~("h U. hl!''''IIPIl~l"lI or map.rJ.ne.e) the tOUOlloin, ,U:..nda.rd.ll ahould tHo ua«l,

EQUAL HOUSING
OPPORTUNITY
~lI.lIJ HI'.1U1Iln.i: Opportu.nJty at.a\.J:m~nt: We all!' pled,Jtd lAJ the IctlA:r aod IJplrtt ot U..s, pelle)' for lhlt': I.(hlp. ... 'ment of l!!'QuaJ hol.JJll.n.a oPPQrt unity lh,rQIJJhol,.ll Lhe lJt.tlOI"I. We enOO\11"""A.tt Lnd lur)1),on A.n ...t· flnnatJ ve .a.dVtrt.l.aln.J &.nd r:na.rkt'tl.nc pr()..

323

§ 110,1

Tltl. 24--"01l,inll uhd UrlM>n o.v.lop...nl

~ In which there art no bahithl to ob-
taJ.n.lJ:::ta nousLn.t bec&w;.t of ra.ct, oolor. r~lI·
1(10n. IIotX, or national on.m. l!lQual Hou.oU" Opportunlty Slopn:
",Equall:!oUllilil. Opportunity."
Tab/< lIT
TIlUAL,..Uon of N~a Notiet'M~PubllJher'fi tlotj~: All rn.! et;(..f.(..t!' advertLaed htroem 1.6 .JUbj~t W the Ftdltn..l :f'a..I.r Bou.s.l.nr Att of 1&168 which m.a.ke:t:i It lllenJ t.«J adverUR "t.n)' prticrencc, lirnit.atloNl, Of d.1Icrimi.h.Uon ~ (lon f'I.C't. eolor, ~lI.rion, ~J:, of MUonIl.l anlm, or IntenUon to .rnBl.t lilY lliuc:h pttltN!'nceJl, lLtnlt&uon. or d..L&CrlI:rt.tnaUon."
Wt .,-til not mow1nlly ~pL any w,,'er· tlil.n.l for refl r::IIl.iI.~ 'li'h1c.h J.s In violation of the law. AU poeHOrn,; li.re hereby lnJormed ~t ill dw~UI.nP -.dv~rtlJ.ed iU"e &vaila.blt on an equaJ opportu..nJt)' bf.\Sl.s.
PAU IIG-fAIR HOUSING ,"OSTER

S« 110.1 PurpOl5t.
1l0.S o.f""ltlo",.
,...." $.ub,...rt • ....-I.e-qul'.. m.n1't 'or Dl""IIII'1 .f

110.10 110,15 110.20 110.:25

Fel'Wf\.!i IitlbJeet, Loc.&t\Qn of pO.5l..tr"S AviJ..li.bUlty of ~t.tt'S.. DeJcrtlJLJon or post.ers.

s.ub~1't ~nfol'W~.'"
110.3:0 Eff«t ot tIJlure to ~pl.y poat.cr.
AU'T1IOllurl: ~. 7(d} of th~ IJepIlU1.Il1~f1t of How!nl and UrbfJl Development Act of 1965 (U U.S.C. 3535(d».
6ol71<cr 31 FR H~'. ]",b. IE. 1972, unJ"", othi!!~ no'W.i.

Subparl I.-Purpatt ond D.fonHlon,

• 110.5 Definition•.
(al "Department" mea.ns the Deputment of Housing and UrblUl Develop·
meht, Cb) "Dlscr1minatotY housing pne·
tic." melUlli IUl Ict Ihat iJs unlawful under section 804. 80S, or 806 01 Title V11l.
(c) "Dwelling" melUl.S any building. IitT\h~ture, or portion therto( \\'hich 15 occupied as. Or d""jlmed or intended tor occupancy L'i<, .. residence 'b.Y one or
more families. a..nd any va.c.&nt land
...hlch ill otleted tor JIlIJe or I..... lor the construction or ~oc.a.tlon thereon of a.ny such buUdwg, structure, or portion lherto!.
(d) "Fiunl.\y" !nclude. a .Inlle Indi·
vldue.].
(e) "Person" includes one or more In· dJvlduals. cOrp<)n.Uon.s. partnenihip•. usociations, I&bor organizations, legal representatives, mutual companies. Joint-stock compwles. truslS, unlncor· porated organi.z..o.tions, trustees. trust· ees In bs.n.k.rupt,.c)'. receiven: ~d fldu·
claries. (I) "s"",.tUY" melLIlS the Secretary
01 Hou.slng and Urb"" Development (8) "F'alr housing pO$ter" meLnS the
poster pres.cribed by the &-cT~t.&ry tor display by p.Mions subject to &e<lIons 804 .. 806 01 the CMI Right!; Act of
1968. M liUIlended. (hl "The Act.. ltIelUlS Title VIII 01
the Clvll.RIJhUi Act 01 1968... amepd· .d. 42 \J.S.C. 3601 et 0.\'1.
(i) "Person In ~he bwslnes.> of .elling
a.,ot rentln8' dwelllnlfS" mearu; a peroon delined In sectlon 803(e) 01 the Act.
[:11 PH :H29. Feb. 18, U7~. U 'J'(u~mQ~ at 40 FR 2(lO711. May e. 1175)
Subpa" &--hqul,.",.nh fo' Dioploy of ~o.I."

I II 0.1 P,.,.pO"".
The reiUlatloIU ..t forth In thlJ; part contrtJn the procedure. established by the Secretary of 1iOU!llng and Urban Development ..1th tC$peel to the dloplay 01 a lalr hO(l.!llni: I)Q!lter by persons subject to seetlOI1$ 80. through 806 of the Civil Right.. Act ot 196.8, as lUll.nded. 42 U.S.C. 360.-3606.
(.0 rn 20011, MIY 8. U7S)

• 1I0.IQ P,roon••ubj..,t
(Ill Except to the extent that plU"&'
KTIlPh (b) of thlJ; ~tIon appUe>. &lI persOfUI aubject to s.eetlon 804 of the Act, Plscrlm.1natlon In the Sale or RenW 01 Bowln.i. ah&.lJ pOSt r.nd m&lnl..i.1n .. l&1r how;in& po.ster ... fol·
lows: (1) With respect to I single-Ia.mlly
1l",,,Ulng Ino\ being otrete~ fot $.II.l. or renUI In conJU.tlction with th~ u.le or

Chop'.' I-Offic••, ...."1, kq
rent.&! of Cll.htt dl1eWnr>;S) orte' W. or r.nUl throu,h a t.oJ broker, &at"t, wes:Jnl<.ll, Ot pe the bualn_ of ..U~ ot d1tfdllnp, iiUCh pen;.on &hall p< walntain .. {&l.r hClu£inll pos~r p\Ue of buoloess where the dWI offtred for ale or rent.&!.
(2) With r"lJ<'<'t to all Dthel Inp eoverKi by the Act:
(J) A tt.lr houalng pos~r •
poot..d "-nd mAlnt&lned at LnY I butlln... where the dweUlng ls tor sale or renW, and
(lJ) A fII.!! hOWlin, poster , pooW t..nd malnt&lned at the d oxet:llt that vlth respect to • tamlly dwelllni being oltered or tent.&! In conjunction with or rent.&! of other dwellings, hol.llUng I)Q!lter m&y be posl mAIntained at the model dwel otead of at ea.ch of the lD
d....llinlrS· (3) With ,..,>peel to those d
to which pangn.ph (8.)(2) 01 tlon appUe>. the la.ir houslnl WUBt be l)Q!lfA!d at the b<>i'U CQru:truction ""d l!1.&ln talned 1 out the period of constructiotl
or rent.&l. (b) This p&tt .hlLlI not reoll
lnlt f.nd mAlntaJ.nJ.ng a lalr
po.ster:
(l) On ,....unt Illl1d. Or
(2) At MY slngle-family u.n\ess such dwelling
(J) 1.& b<>wg oflered [or sa.le
In conjunction with the saJe
of other d....UJni'li In whier Ilta.nces a f&lr hOl.U';lng pOSLer posted IUld l1lalnW!..lned 8..< 5(>
paragraph (aH2)(U) of thls .' Ill) 15 being oltered for s~le
through A real ""ute bro•• s.a.l esm &11. of penon l.n the b1 selling or rentlng dwellings clrc=Wlces ~ ft.lr hO\L5lr sh&.lJ be po.sted a.nd Illslnl Spe<:l!1ed In p IIJ'lI&T1I.Ph (II )( 1
~t10h.
eel AJJ pel'1iOn.l) RubJect to s.
of the Act. D!£crlmln&Uon , na.nclng 01 aousln.ll. shall lllalntaln a lalr hOUJilng po. thelr pl~es of bu.siness 9Ihl(
p ..1e In the Ilnanclng 01 hOU$
cd) AJJ peffi)11B subj~t tD S
01 the Act. Dlscrlmln~tlon I,

 
 CLOSED
U.S. District Court Eastern District of Michigan (Detroit) CIVIL DOCKET FOR CASE #: 2:04-cv-71879-AJT-VMM

United States of America v. Old Kent Financial Corporation et al Assigned to: Honorable Arthur J Tarnow Referred to: Honorable Virginia M Morgan Cause: No cause code entered

Date Filed: 05/19/2004 Date Terminated: 05/19/2004 Jury Demand: None Nature of Suit: 440 Civil Rights: Other Jurisdiction: U.S. Government Plaintiff

Plaintiff United States of America

represented by Jeffrey G. Collins United States Attorney's Office 211 W. Fort Street Suite 2001 Detroit, MI 48226-3211 313-226-9100 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Judith E. Levy U.S. Attorney's Office (Detroit) 211 W. Fort Street Suite 2001 Detroit, MI 48226 313-226-9100 Email: judith.levy@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

Pamela J. Thompson U.S. Attorney's Office (Detroit) 211 W. Fort Street Suite 2001 Detroit, MI 48226 313-226-9100 Email: Pamela.Thompson@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

V. Defendant Old Kent Financial Corporation
Defendant Old Kent Bank

Steven H. Rosenbaum U.S. Department of Justice Housing and Civil Enforcement Section 950 Pennsylvania Avenue, N.W. Washington, DC 20530 202-305-1311 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Timothy J. Moran U.S. Department of Justice Housing and Civil Enforcement Section 950 Pennsylvania Avenue, N.W. Washington, DC 20530 202-305-1311 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Valerie R. O'Brian U.S. Department of Justice Housing and Civil Enforcement Section 950 Pennsylvania Avenue, N.W. Washington, DC 20530 202-305-1311 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 05/19/2004

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Docket Text

1 COMPLAINT filed by United States of America against Old

05/19/2004 07/21/2004

Kent Bank, Old Kent Financial Corporation, Receipt No. USA.(CGre, ) (Entered: 05/20/2004)
2 SETTLEMENT AGREEMENT by Old Kent Bank, Old Kent Financial Corporation and United States of America. (CGre, ) (Entered: 05/21/2004)
3 STIPULATED ORDER Signed by Honorable Arthur J Tarnow. (DTyle, ) (Entered: 07/29/2004)

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02/18/2007 18:48:23

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Docket Report

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2:04-cv-71879-AJTVMM

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