(2) Refusal to enter into further contracts for financial assistance with the local authority;

(3) Cancellation or termination of contracts with the local authority;

(4) Such other action as may be appropriate and permitted by law.

(j) Waiver. The Commissioner may, for good cause, waive any of the procedural requirements in the processing of any complaint.

(k) Consultation with State or local agencies. In the inquiry into or resolution of a complaint, the Regional Director or his designee may consult with any officially constituted State or local agency charged with preventing or redressing discrimination because of race, color, creed, or national origin.

(Sec. 502(b), 62 Stat. 1284, 42 U.S.C. 1404a; sec. 203, E.O. 11063, 27 F.R. 11528) [28 F.R. 12620, Nov. 27, 1963]

§ 1500.7 Complaint procedure; nondiscrimination in low-rent public housing.

(a) Introduction. This section is issued under the authority of title VI of the Civil Rights Act of 1964, P.L. 88352, 78 Stat. 252, 42 U.S.C. 2000d-1; the regulations of the Housing and Home Finance Agency effectuating title VI of the Civil Rights Act of 1964, 24 CFR, Subtitle A, Part 1, § 1.1 et seq. of this title (herein referred to as "the HHFA regulations"); and section 502(b) of the Housing Act of 1948, 42 U.S.C. section 1404a. Notwithstanding the provisions of § 1500.6, Complaint procedures—equal opportunity in housing, the procedure prescribed in the HHFA regulations, as implemented by the Public Housing Administration in this § 1500.7, shall apply with respect to any complaint of discrimination on the ground of race, color, or national origin in the low-rent housing program under the United States Housing Act of 1937, as amended, 42 U.S.C. 1401 et seq. The procedure prescribed in § 1500.6 shall apply only to complaints of discrimination on the basis of creed.

(b) Definitions. As used in this section:

(1) "Local Authority” means a “public housing agency" as defined in section 2(11) of the United States Housing Act of 1937, 42 U.S.C. 1402(11), which is a "recipient" of or an "applicant" for Federal financial assistance under that Act as defined in $ 1.2 of this title (HHFA regulations). With respect to any federally owned or operated low-rent

housing project, the housing project manager shall be deemed to be a "Local Authority" for purposes of this section.

(2) "Discrimination" means any action or practice of a local Authority of the kind prohibited by section 601 of the Civil Rights Act of 1964 or by § 1.4 (a) and (b) of this title (HHFA regulations), and, in the case of a project covered by a contract clause for equal opportunity in housing pursuant to section 101 of Executive Order 11063 (see § 1500.6(b) (2)), any action or practice prohibited by such clause relative to race, color, or national origin.

(3) "Project" means a low-rent housing project assisted under the United States Housing Act of 1937, including any low-rent housing project owned or operated by the Federal Government pursuant to said Act.

(4) "Commissioner" means the Public Housing Commissioner.

(c) Complaints—(1) Filing. Complaints of discrimination on the part of a Local Authority shall be filed with the appropriate HUD Regional Administrator. A list of HUD Regional Offices with their addresses and areas of jurisdiction appears as Appendix A to this section. Regional Administrators are authorized to extend the time for filing a complaint beyond the period specified in § 1.7(b) of this title.

(2) Content. A complaint shall be signed by the complainant or his representative and shall, insofar as known to complainant, name the Local Authority and the project involved, state the time, place, and nature of the alleged discrimination, set forth factual information known to the complainant supporting the allegation of discrimination, and state the complainant's interest in or relationship to the alleged discrimination.

(3) Acknowledgement. Receipt of a complaint shall be acknowledged promptly and in writing by or at the direction of the Regional Administrator.

(4) Further notice to complainant. The complainant will be advised in writing when investigation of the complaint indicates discrimination and the matter is resolved by informal means. In all other respects, the procedure prescribed in the HHFA regulations will apply.

(d) Effective date. This section shall be effective January 3, 1965.

(Sec. 502(b), 62 Stat. 1284, sec. 602, 78 Stat. 252; 42 U.S.C. 1404a, 2000d-1) [30 F.R. 132, Jan. 7, 1965, as amended at 32 F.R. 13808, Oct. 4, 1967]

PART 1520-LOW-RENT HOUSING PROGRAM

Definitions. General policy.

Sec. 1520.1 1520.2 1520.3 Application for financial assistance (other than leasing program). 1520.4 Annual Contributions Contract (other than leasing program).

1520.5 Leasing program.

1520.6 Private participation.
1520.7 Applications; information.
1520.8 Federally owned low-rent housing.

AUTHORITY: The provisions of this Part 1520 issued under sec. 7(d) of Dept. of HUD Act, 42 U.S.C. 3535(d); secs. A, 4, of Secretary's delegation effective July 1, 1966 (31 F.R. 8967, June 29, 1966).

SOURCE: The provisions of this Part 1520 appear at 32 F.R. 13808, Oct. 4, 1967, unless otherwise noted.

[32 F.R. 14695, Oct. 24, 1967]

(c) Low-rent housing. Decent, safe, and sanitary dwellings within the financial reach of families of low income, and all necessary appurtenances.

(d) Families of low income. Families who are in the lowest income group and who cannot afford to pay enough to cause private enterprise in their locality or metropolitan area to build an adequate supply of decent, safe, and sanitary dwellings for their use.

(e) Local Authority. Any State, county, municipality, or other governmental entity or public body which is authorized to engage in the development or administration of low-rent housing or slum clearance. A "Local Authority" is a "public housing agency" as defined in the Act.

(f) Cooperation agreement. A contract between a Local Authority and the governing body of the locality, providing for tax exemption, elimination of unsafe and insanitary dwelling units, supplying of public services, and other forms of cooperation by the local government, and for payments in lieu of taxes by the Local Authority, in connection with a low-rent housing project.

The objectives of the program are to promote the general welfare by employing the funds and credit of the United States to assist the States and their political subdivisions to alleviate unemployment and to remedy the unsafe and insanitary housing conditions and the acute shortage of decent, safe, and sanitary dwellings for families of low income, in urban and rural nonfarm areas, that are injurious to the health, safety, and morals of the citizens of the Nation. The objectives are carried out by providing financial assistance, pursuant to contracts, to Local Authorities applying for such assistance in developing and operating low-rent housing projects or for leasing of housing in private accommodations. Applications for financial assistance, if otherwise proper, are approved to the extent permitted by limitations contained in the Act or other statutes.

§ 1520.3

Application for financial assistance (other than leasing program). A Local Authority seeking Federal financial assistance for a low-rent housing project must submit an application and a showing that the Local Authority has been organized in accordance with State law, that there is a need for the proposed low-rent housing which is not being met by private enterprise, and that the governing body of the locality has by resolution approved application for a preliminary loan and has entered into a Cooperation Agreement with the Local Authority satisfactory to the Department of Housing and Urban Development. A Preliminary Loan Contract provides for advances of funds for surveys and planning. Such a contract is tendered by HUD to the Local Authority only after approval by the Assistant Secretary for Renewal and Housing Assistance. § 1520.4 Annual Contributions Contract (other than leasing program).

An Annual Contributions Contract provides for a loan to assist in the development of a low-rent housing project and for annual contributions to assist in achieving and maintaining the low-rent character of the project. As the basis for such a contract, the Local Authority must submit a plan for its project with a showing of its feasibility, including such matters as description of site, statement of number and types of structures and dwelling units, estimate of develop

ment cost, and data supporting all features of the project. The Local Authority must also show that, except in the case of displaced or elderly families, a gap of at least 20 percent has been left between the upper rental limits for the proposed housing and the lowest rents at which private enterprise is providing housing, and is required to include a plan for relocating displaced families. An Annual Contributions Contract is tendered by HUD to the Local Authority only after approval by the Assistant Secretary for Renewal and Housing Assistance.

§ 1520.5 Leasing program.

The leasing program involves the use of privately owned housing with the aid of subsidy channeled through the Local Authority. Pursuant to section 23 of the United States Housing Act of 1937 (42 U.S.C. 1421b), HUD is authorized to make annual contributions available to Local Authorities so that privately owned dwellings may be leased for occupancy by low-income families at rents within their means. In such a leasing program, HUD pays annual contributions to cover the deficiency between the rent payable to the owner and the rent which the lowincome family can afford to pay. Before dwellings can be provided by leasing under section 23, the local governing body must adopt a resolution approving application of the section 23 provisions to the locality. An application for low-rent housing under section 23 of the Act should include data on the number of units desired, available supply, and need for the housing, amount of financial assistance estimated to be necessary, and financial feasibility of the undertaking. §1520.6

Private participation.

(a) Increased opportunities exist for participation of the private sector in the low-rent housing program. These result from the growing use of new methods of providing low-rent housing in addition to the traditional method of new construction. These include the acquisition and rehabilitation of existing housing for low-income occupancy, leasing of existing housing under section 23 (described in § 1520.5), as well as the "turnkey" technique and joint enterprise between Local Authorities and private organizations.

(b) Under the "turnkey" technique, a private developer or builder, who has a site or an option, or can obtain one, can approach the Local Authority with

a proposal to build in accordance with plans and specifications prepared by his own architect and the usual commercial standards of quality and workmanship. If the proposal is acceptable, they will then enter into a contract under which the Local Authority agrees to purchase the completed property. This contract is backed by HUD's financial assistance commitment to the Local Authority, thereby enabling the developer to secure commercial construction financing in his usual manner. The "turnkey" technique may also be used in the rehabilitation of existing housing; instead of a Local Authority itself acquiring and rehabilitating existing dwellings, the Local Authority, under the "turnkey" approach, can contract with a private builder or rehabilitator to purchase from him certain dwellings which he has acquired and rehabilitated to HUD standards.

(c) Joint enterprise between Local Authorities and private organizations may consist, for example, of joint undivided ownership of housing by the Local Authority and a private organization, with moderate-income families housed in units used by the private organization and low-income tenants housed in other units with the aid of HUD annual contributions channeled through the Local Authority. Another form of joint enterprise would be for a private organization having full ownership of housing to use a portion of its units to house moderate-income families with the remaining units leased for occupancy by low-income families with the aid of HUD subsidy channeled through the Local Authority. § 1520.7

Applications; information.

(a) A Local Authority applying for financial assistance should submit its ap

plications and all related documents to the appropriate HUD Regional Office. Application forms and other forms, procedures, policy statements, and materials issued by HUD for the use or guidance of Local Authorities may be obtained through the appropriate HUD Regional Office; however, after approval of its application, a Local Authority will be sent copies of all relevant materials without specific request.

(b) Information with respect to methods of providing low-rent housing with private participation may be obtained from the Local Authority in the locality or from the appropriate HUD Regional Office. Information may also be obtained from the Department of Housing and Urban Development, Washington, D.C. 20410.

(c) A list of HUD Regional Offices appears as Appendix A to § 1500.7 of this chapter.

§ 1520.8 Federally owned low-rent housing.

Low-rent housing projects owned by the Federal Government have been disposed of except for project Cherokee Terrace in Enid, Okla. Information on final action on applications for tenancy and information as to final action of the Housing Manager in the procurement of supplies and materials for which such a Manager is authorized to contract shall be kept at the project office and made available to the public by the Housing Manager. Inquiries concerning the project and requests for statements of policy, procedures, and forms should also be directed to the Housing Manager. The address is: Cherokee Terrace, 619 East Main Street, Enid, Okla. 73701.