United States by employees who were not recruited within the United States are exempt from the requirements of the equal opportunity clause. (d) Others. Other exemptions set forth in the regulations of the Secretary of Labor at 41 CFR 60-1.5 apply to transactions under this subpart. § 200.430 Sanctions. Failure or refusal to comply and give satisfactory assurances of future compliance with the requirements of this subpart shall be proper basis for applying sanctions. The sanctions shall be applied in accordance with the provisions of Executive Order 11246 and the relevant regulations of the Secretary of Labor. Subpart K-Correction of Structural Defects. § 200.500 Purpose. The purpose of this subpart is to specify the terms, conditions, and types of assistance that the Federal Housing Administration will render to an eligible mortgagor who has been unable to secure satisfactory reconstruction or replacement of structural defects in his property. § 200.502 Application for assistance. An application for assistance in the correction of structural defects, in form satisfactory to the Commissioner, shall be filed by a mortgagor under an FHA-insured mortgage with the Field Office Director having jurisdiction over the area in which the property is located. The application shall be filed not later than four years after the date of the first mortgage insurance certificate issued in connection with the property. A mortgagor under a new FHA mortgage on the same property shall be entitled to file an application if it is filed within the same four-year period following the date of the first insured mortgage certificate. § 200.505 Nature of defect. Assistance in the correction of structural defects shall be available only in connection with a structural defect in the property which the Commissioner has determined to be of such a nature as to seriously affect the livability of the property. Such assistance shall not be available where the defect occurs as a result of fire, earthquake, flood, tornado, or waste. § 200.507 Eligibility requirements. To be eligible for consideration by the Commissioner for receiving assistance in the correction of structural defects, the mortgagor must establish that: (a) He is the owner of a one- to fourfamily dwelling covered by an individual mortgage that was insured by the Commissioner after September 2, 1964. (b) The dwelling was approved for mortgage insurance prior to the beginning of construction and was inspected by the Commissioner or by the Veterans Administration. (c) He has made reasonable efforts to obtain a correction of a structural defect in his property by the builder, seller, or other persons, and that the defect has not been corrected. § 200.510 Type of assistance. The type of assistance in the correction of structural defects to be rendered a mortgagor who establishes eligibility shall be determined by the Commissioner. In those cases where the Commissioner determines it is appropriate and necessary, he may take any of the actions as follows: (a) Pay expenses in connection with having the defect corrected. (b) Pay the claim of the mortgagor for corrected damages to the property arising out of such defect. (c) Acquire title to the property with the approval of the mortgagor and under such terms and conditions as are satisfactory to the mortgagor. § 200.512 Subrogation by mortgagor. Where the Commissioner has taken action as provided in § 200.510, any legal rights the mortgagor may have against the builder, seller, or other persons, arising out of the defect in his property shall be assigned and set over to the Commissioner. $ 200.515 Right and finality of determination. The mortgagor shall not be entitled, as a matter of right, to receive the assistance in the correction of structural defects provided in this subpart. Any determination made by the Commissioner in connection with a mortgagor's application for assistance shall be final and conclusive and shall not be subject to judicial review. Subpart L-Correction of Structural Defects in Homes Covered by Mortgage Insurance Under Section 203, 221 or 235 AUTHORITY: Sec. 518 (b) and (c), 78 Stat. 783, 84 Stat. 1771, 88 Stat. 678, 12 U.S.C. 1735c. § 200.517 Purpose. The purpose of this subpart is to specify the terms and conditions under which the Secretary will consider affording assistance to mortgagors under sections 518(b) and 518(d) of the National Housing Act. [40 FR 8948, Mar. 4, 1975, as amended at 41 FR 42185, Sept. 27, 1976] $ 200.520 Application for assistance. An application for assistance in the correction of defects, in a form satisfactory to the Secretary, shall be filed by or on behalf of an eligible mortgagor with the Area or Insuring Office Director having jurisdiction over the area in which the property is located. (a) In the case of a dwelling covered by a mortgage insured under Section 235 of the National Housing Act, the application shall be filed not later than one year after the insurance of the mortgage. (b) In the case of a dwelling located in an older declining urban area and covered by a mortgage insured under Section 203 or 221 of the National Housing Act on or after August 1, 1968, but prior to January 1, 1973, the application shall be filed not later than December 3, 1976. (c) In the case of a dwelling located in an older declining urban area and covered by a mortgage insured under Section 203 or 221 of the National Housing Act on or after January 1, 1973, but prior to August 3, 1976, the application shall be filed not later than August 3, 1977. [41 FR 42185, Sept. 27, 1976] § 200.522 Eligibility for consideration. The Secretary will consider a mortgagor eligible for assistance under this subpart if the Secretary finds that each of the following requirements is fulfilled: (a) The person applying for assistance is the owner and mortgagor of a one or two family dwelling covered by a mortgage insured under Section 235 of the National Housing Act pursuant to a mortgage insurance commitment issued when such dwelling was more than 1 year old; or, in the case of a dwelling located in an older, declining urban area, the applicant is the owner and mortgagor of a one, two, three or four family dwelling covered by a mortgage insured under Section 203 or 221 of the National Housing Act on or after August 1, 1968, but prior to August 3, 1976, pursuant to a mortgage insurance commitment issued when such dwelling was more than 1 year old. (b) One or more structural or other defects existed in such dwelling on the date of the issuance of the mortgage insurance commitment which: (1) So seriously affect use and livability as to create a serious danger to the life or safety of the inhabitants of such dwelling, and (2) were of such a nature that a proper inspection could reasonably be expected to have disclosed them; and (c) The application for assistance was filed in accordance with the provisions of this subpart. [41 FR 42185, Sept. 27, 1976] both direct expenditures and compensation of the mortgagor. The Secretary, in determining the form of assistance and when it will be afforded, will consider: (a) Whether the defects so seriously affect use and livability as to create a serious danger to the life or safety of the inhabitants; (b) The availability of funds from which the Secretary is authorized to make expenditures hereunder; and (c) Such other matters as he deems material. [36 FR 24467, Dec. 22, 1971, as amended at 38 FR 25994, Sept. 17, 1973; 40 FR 8948, Mar. 4, 1975] § 200.533 Right and finality of determination. All decisions of the Secretary with respect to assistance under this subpart are final and conclusive and not subject to judicial review. Subpart M-Affirmative Fair Housing Marketing Regulations SOURCE: 37 FR 75, Jan. 5, 1972, unless otherwise noted. § 200.600 Purpose. The purpose of this subpart is to set forth the Department's equal opportunity regulations for affirmative fair housing marketing under FHA subsidized and unsubsidized housing programs. § 200.605 Authority. The regulations in this subpart are issued pursuant to the authority to issue regulations granted to the Secretary by section 7(d) of the Department of Housing and Urban Development Act of 1965, 42 U.S.C. 3535(d), and implement the functions, powers, and duties imposed on the Secretary by Executive Order 11063, 27 FR 11527, and Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C. 3608. [40 FR 20080, May 8, 1975] § 200.610 Policy. It is the policy of the Department to administer its FHA housing programs affirmatively, as to achieve a condition in which individuals of similar income levels in the same housing market area have a like range of housing choices available to them regardless of their race, color, religion, sex, or national origin. Each applicant for participation in FHA subsidized and unsubsidized housing programs shall pursue affirmative fair housing marketing policies in soliciting buyers and tenants, in determining their eligibility, and in concluding sales and rental transactions. [40 FR 20080, May 8, 1975] § 200.615 Applicability. The affirmative fair housing marketing requirements, as set forth in paragraphs (a) through (f) of § 200.620, shall apply to all applicants for participation in FHA subsidized and unsubsidized housing programs whose application is hereafter approved for development or rehabilitation of: (a) Subdivisions, multifamily projects and mobile home parks of five or more lots, units or spaces; or (b) Dwelling units, when the applicant's participation in FHA housing programs had exceeded or would thereby exceed development of five or more such dwelling units during the year preceding the application, except that there shall not be included in a determination of the number of dwelling units developed by an applicant those in which a single family dwelling is constructed or rehabilitated for occupancy by a mortgagor on property owned by the mortgagor and in which the applicant had no interest prior to entering into the contract for construction or rehabilitation. § 200.620 Requirements. With respect to all FHA subsidized or unsubsidized programs in which the applicant hereafter participates (except for housing for which a conditional commitment has been issued prior to the effective date of these regulations), the applicant shall meet the following requirements or, if he contracts marketing responsibility to another party, be responsible for that party's carrying out the requirements: (a) Carry out an affirmative program to attract buyers or tenants, regardless of sex, of all minority and ma jority groups to the housing for initial sale or rental. An affirmative marketing program shall be in effect for each multifamily project throughout the life of the mortgage. Such a program shall typically involve publicizing to minority persons the availability of housing opportunities regardless of race, color, religion, sex or national origin, through the type of media customarily utilized by the applicant, including minority publications or other minority outlets which are available in the housing market area. All advertising shall include either the Department-approved Equal Housing Opportunity logo or slogan or statement and all advertising depicting persons shall depict persons of majority and minority groups, including both sexes. (b) Maintain a nondiscriminatory hiring policy in recruiting from both minority and majority groups, including both sexes, for staff engaged in the sale or rental of properties. (c) Instruct all employees and agents in writing and orally in the policy of nondiscrimination and fair housing. (d) Specifically solicit eligible buyers or tenants reported to the applicant by the Area or Insuring Office. (e) Prominently display in all offices in which sale or rental activity pertaining to the project or subdivision takes place the Department-approved Fair Housing Poster and include in any printed material used in connection with sales or rentals, the Department-approved Equal Housing Opportunity logo or slogan or statement. (f) Post in a conspicuous position on all FHA project sites a sign displaying prominently either the Departmentapproved Equal Housing Opportunity logo or slogan or statement. [37 FR 75, Jan. 5, 1972, as amended at 40 FR 20080, May 8, 1975; 40 FR 53008, Nov. 14, 1975] § 200.625 Affirmative fair housing marketing plan. Each applicant for participation in FHA housing programs to which these regulations apply shall provide on a form to be supplied by the Department information indicating his affirmative fair housing marketing plan to comply with the requirements set forth in § 200.620. This form, once approved by HUD, will be available for public inspection at the sales or rental offices of the applicant. § 200.630 Notice of housing opportunities. The Director of each Area and Insuring Office shall prepare monthly a list of all projects and subdivisions covered by this subpart on which commitments have been issued during the preceding 30 days. The Director shall maintain a roster of interested organizations and individuals, including public agencies responsible for providing relocation assistance and local housing authorities, desiring to receive the monthly list and shall provide the list to them. § 200.635 Compliance. Applicants failing to comply with the requirements of this subpart will make themselves liable to sanctions authorized by regulations, rules or policies governing the program pursuant to which the application was made, including but not limited to denial of further participation in departmental programs and referral to the Department of Justice for suit by the United States for injunctive or other appropriate relief. § 200.640 Effect on other requirements. The requirement for compliance with this part is in addition to and not in substitution for any other requirements imposed by or under Executive Order 11063 or Title VIII of the Civil Rights Act of 1968, as amended. [40 FR 20080, May 8, 1975] APPENDIX: EQUAL HOUSING OpportUNITY INSIGNIA The Equal Housing Opportunity insignia are as follows: Equal Housing Opportunity logo: [37 FR 205, Jan. 7, 1972, as amended at 46 FR 2344, Jan. 9, 1981] § 200.705 Authority. The regulations in this subpart are issued pursuant to section 7(d) of the Department of Housing and Urban Development Act of 1965, 42 U.S.C. 3535(d), sections 235(i) and 236 of the National Housing Act (12 U.S.C. 1715z(i) and 1715z-1). They implement Executive Order 11063, 27 FR 11527; title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3608; and the Department of Housing and Urban Development regulations approved by the President under title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d-1, in Part 1 of this title. [37 FR 205, Jan. 7, 1972, as amended at 46 FR 2344, Jan. 9, 1981] § 200.710 Requests for priority registration, early feasibility, or reservation of contract authority for section 235(i), rent supplement, or section 236 projects. A request for priority registration, early feasibility, or reservation of contract authority for section 235(i), rent supplement or section 236 projects shall be evaluated and processed in accordance with the following Evaluation of Requests: U.S. DEPARTMENT OF HOUSING AND URBAN FEDERAL HOUSING ADMINISTRATION Evaluation of requests for priority registration, early feasibility, reservation of contract authority (section 235(i), rent supplement, section 236). 235(i)221d3 rent supplement □ 236 rent supplement Sponsorship: Profit □ Nonprofit Lim. Div. Priority registration Early feasibility Reservation Area or insuring office Applicant (name and address) Census tract (where available) Date of initial application |