ED 178 673-

/AUTHORTITLE

INSTITUTION

SPONS lot-At:41--M DATENOTE

EDRS PRICEDESCRIPIORS

IDENTIFIERS

ABSTRACT

DOCUMENT RESUME

OD 019 964

Lindtstrom DuaneCivil Rights and the Housing and CommunityDevelopment Act of 1974; Volume 1: Iivonia.Michigan State Advisory Committee tc the 0.$.Commission on Civil Rights.Commission on Civil Rights, Washington, D.C.J-QT. 7541p.; Exhibits I and II may be marginally legik4e.For a related document see UD 019 965

MF01/PCO2 Plus PostagdAffirmative Action: Citizen Participation; *CivilRights; Civil Rights Legislation; *CommunityDevelopment; Compliance (Legal) ; EconomicallyDisadvantaged: *Economic 00portunities: Fedecal-Legislation; *Federal Programs; *Housing; HousingNeeds; Minority Groups*Housing and Ccmmunity Development Act 1974;*Michigan (Livoria)

The primary objective of the Housing and CommunityDevelopment Act of 1974 is the development of viable artancommunities, including decent housing, a suitable living environment,and expanding economic opportunities. This report focuses on theattempts of Livonia, Michigat, to obtain funds under the act.Examined are the areas of citizen participation, assistance foreligible persons, and civil rights compliance. It is stated that inall three areas, Livonia's application for funds under the 1974 actand the process leading to its development have been deficient. Oneparticular problem is said tc have been the city's failure toaffirmatively address the housing reeds cf non-resident workers whomay wish tc reside it Livonia. It is recommended that the FederalGovernment amend selected procedures for application for funding, andthat the Livonia city aovernment also modify parts cf its applicationfor funding in order to increase compliance with affirmative actionand other civil rights legislatior. Appended to the report aredescriptions of several civil rights laws affecting the Housing andCommunity Levelopment Act of 1974. (Author/GC)

300*********************************************************************Reproductions supplied by EDRS are the best that can be made

from the original document.***********************************************************************

buts1379

CIVIL RIGHTS AND THEHOUSING AND COMMUNITY

DEVELOPMENT- ACTOF 1974

VOLUME I : LIVONIA

--A report of the MichiganAdvisory Committee to theUnited States Commission onCivil Rights prepared forthe information and consi-deration of the Commission.This report will be consideredby the Commission, and theCommission will make publicits reaction. Tn the mean-time, the findings and recom-mendations of this reportshould not be attributed tothe Commission but only tothe Michigan AdvisoryCommittee.

June 1975

S DEPARTMENT OF HEALTHEDUCATION &WELFARENTIONL INSTITUTE OF

EDUCATION

THIS 0(..,(UMI NT HAS BEEN REPI4O,Du(D EXAtILY AS E C EvFU IOMTr-4 PEPSON OW OwC,ANIZATION ORiGIN

ci ATityC, IT POINTS OF VIE V'Y OW OPINIONS',TAU 0 DO NOT NE( ESSARiv REPRF-,,( N/ 0$ AL NAT ,ONAL Tsdk,T I UTE Of-F Mir A T ION Puy! oN OW POL IC Y

CIVIL RIGHTS AND THE HOUSING AND COMMUNITY

DEVELOPMENT ACT OF 1974

VOLUME I: LIVONIA

--A report prepared by theMichigan Advisory Committeeto the U.S. Commission onCivil Rights

ATTRIBUTION:

The findings and recommenda-tions contained in this reportare those of the Michigan Advi-sory Committee to the UnitedStates Commission on Civil Rightsand, as such, are not attributableto the Commission.

This report has been preparedby the State Advisory Committeefor submission to the Commission,and will be considered by theCommission in formulating itsrecommendations to the Presidentand Congress.

RIGHT OF RESPONSE;

Prior to the publication of areport, the State Ac-isory Com-mittee affords to all individualsor organizations that may be de-famed, degraded, or incriminatedby any material contained in thereport an opportunity to respondin writing to such material. Allresponses have been incorporated,appended, or otherwise reflectedin the publication.

MICHIGAN ADVISORY_ COMMITTEETO THE UNITED STATES

COMMISSION ON CIVIL RIGHTS

Jo-Ann Terry, ChairpersonDetroit

*Olive R. Beasley, Vice ChairpersonFlint

*M. Howard Rienstra, SecretaryGrand Rapids

Wilma BledsoeHighland Park

Arthur JohnsonDetroit

Frank MerrimanDeckerville

*Clifford C. SchruppDetroit

Yolanda FloresPontiac

Richard H. LobenthalDetroit

Leslie MylesUniversity Center

Albert H. WheelerAnn Arbor

*Members of the Community Development ProjectSubcommittee.

LETTER OF TRANSMITTAL

MICHIGAN ADVISORY COMMITTEETO THE U.S. COMMISSION ONCIVIL RIGHTS - JUNE 1975

MEMBERS OF THE COMMISSION

Arthur S., Flemming, ChairpersonStephen Horn, Vice ChairpersonFrankie M. FreemanRobert S. RankinManuel Ruiz, Jr.Murray Saltzman

John A. Buggs, Staff Director

Sirs and Madam:

The Michigan Advisory Committee submits this re-port, the first on a continuing study of the civil

rights aspects of the Housing and Community Develop-

ment Act of 1974, as part of its responsibility toadvise the Commission about civil rights problemswithin this State.

This.report is interim in nature, focusing on theattempts of one community, suburban Livonia, to

obtain funds under the new act, an omnibus commun-ity development law designed to consolidate previous

caLegorical programs and to delegate to local govern-,ments more control over the use of such Federal funds.

The Advisory Committee has found that in each of

three areas: 1) citizen participation, 2) assistancefor eligible persons, and 3) civil rights compliance,Livonia's application under the 1974 act and the

process leading to its development have been

deficient. In particular, the city has notaffirmatively dealt with the housing needs of non-resident workers who may wish to reside in Livonia.

iii

5

A new aspect of Federal community developmentlegislation present in the 1974 act and particu-larly relevant to cities such as Livonia is therequirement that, in addition to considering thehousing needs of present residents, communitiesseeking such funds must also consider the needs of"persons planning or expected to reside" there "asa result of planned or existing employment faci-lities." (39 Fed. Reg. 40144 (1974)).

The Advisory Committee has also foui.d that theDepartment of Housing and Urban Development has sofar failed to specify that local communities mustinvolve non-residents who might be "expected toreside" there in the decisionmaking process. Inaddition, HUD officials have issued internalinstructions to hold the civil rights review ofincoming community development applications to aminimum. We have further found that, even in theabsence of such instructions, HUD would lack thenecessary staff capacity at this time to adequatelyreview and monitor grant programs under the 1974act for civil Tights complialce.

Based on these findings, this Advisory Committeehas, directed recommendations to appropriate local,State, and Federal officials. It is the AdvisoryCommittee's hope that the Commission will supportthese recommendations with specific actious. The

Advisory Committee is now examining the impact oftile 1974 act in inner city a7eas in Michigan andwill also examine rural settings in this regard.Further reports.and recommendations will beforthcoming.

Respectfully,

/ /Jo-Ann TerryChairperson

iv

ACKNOWLEDGMENTS

Volume I of CIVIL RIGHTS AND THE HOUSING ANDCOMMUNITY DEVELOPMENT ACT OF 1974 was writtenby Duane Lindstrom, research writer. TheMichigan Advisory Committee's community devel-opment project, of which Lhis report is thefirst of several to be issued, is under theimmediate staff direction of Frank E. Steiner,equal opportunity specialist. Assistance inthe research and preparation of the report wasprovided by Margaret V. Johnson, regional_attorney; Delores Miller, administrativeassistant; and Ada L. Williams and Sharon A.Rivers, support staff. The report was preparedunder the supervision of Clark G. Roberts,regional director, Midwestern Regional Office.

Final edit and review was conducted in theCommission's Office of Field Operations,Washington, D.C., by editor Laura Chin, assistedby Mary Frances Newnan. Preparation of allState Advisory Committee reports is supervisedby Isaiah T. Creswell, Jr., Assistant StaffDirector for Field Operations.

THE UNITED STATES COMMISSION ON CIVIL RIGHTS

The United States Commission on Civil Rights, created bythe Civil Rights Act of 1957, is an independent, bipartisanageney of the executive branch of the Federal Government.By the terms of the Act, ls amended, the Commission ischarged with the following duties pertaining to denials of

e equal protection of,the laws based on race, color, sex,reli or national-origin: investigation of individualdiscriminatory denials of the right to vote; study of legaldevelopments with respect to denials of the equal protectionof the law; appraisal of the laws and policies of the UnitedStates with respect to denials of equal protection of thelaw; maintenance of a national clearinghouse for informationrespecting denials of equal protection of the law; andinvestigation of patterns or practices of fraud or discrim-ination in the conduct of Federal elections. The Commissionis also required to submit reports to the President and theCongress at such times as the Commission, fhe Congress, orthe President shall deem desirable.

THE STATE ADVISORY COMMITTEES

An Advisory Committee to the United States Commission onCivil Rights has been established in each of the 50 Statesand the District of Columbia pursuant to section 105(c),ofthe Civil Rights Act of 1957 as amended. The AdvisoryCommittees are made up of responsible persons who servewithout compensation. Their functions under their mandatefrom the Commission are to: aivise the Commission of allrelevant information concerning their respective States onmatters within the jurisdiction of the Commission; advisethe Commission on matters of mutual concern in the prepara-tion of reports of the Commission to the President and theCongress; receive reports, suggestions, and recommendationsfrom individuals, public and private organizations, andpublic officials upon matters pertinent to inquiries con-ducted by the State Advisory Committee; initiate and forwardadvice and recommendations to the Commission upon matters inwhich the Commission shall request the assistance of theState Advisory Committee; and attend, as observers, any openhearing or conference which the Commission may hold withinthe State.

\ CONTENTS

Page

I. INTRODUCTION 1

II. CITIZEN PARTICIPATION 4

III. PROVIDING FOR THE ELIGIBLE 10

IV. CIVIL RIGHTS COMPLIANCE 2'

:AHIBITS

Housing Assistance Needs of Lowerincome Households Submitted byLivonia in its Housing and CommunityDevelopment Application 13

II. Annual Goal for Housing AssistanceSubmitted by Livonia In its Housingand Community DevelonmentApplication

APPENDIX:

14

Civil Rights Laws Affecting theHousing and Community DevelopmentAct of 1974 28

vii

9

I. INTRODUCTION

The Housing and Community Development Act of 1974, aFederal plan to distribute $8 billion in housing andcommunity improvement funds among towns, cities, andurban counties, could signifièantly alter the racialand economic housing patterns of the nation.1

The primary objective of the Housing and CommunityDevelopment Act, signed into law August 22, 1974, isthe "development of viable urban communities,including decent housing and a suitable livingenvironment and expanding economic opportunities,principally for persons of low and moderate income."2

Unlike previous Federal legislation which created avariety of programs to provide funds for specifieduses such as water and sewer lines, open space andurban beautification, historic preservation, urbanrenewal, and model cities, the Housing and CommunityDevelopment Act provides money in a "block grant" tothe local government. The dedision as to how themoney is spent is no longer to be made by the Federalgovernment but rather by the local officials receivingthe funds.

. Pub. L. No. 93-383 12103(a)(1) (Aug. 22, 1974).

2. 39 Fed. Reg. 40137 (1974).

2

The act, according to President Gerald R. Ford,marks "a complt.te and welcome reversal in the waythat America tries to solve the problems of oururban communities. Decisions will be made at thelocal level. And responsibility for results willbe placed squarely where it belongs--at the locallevel...."3

The Vousing and Community Development Act outlinesspecific responsibilities including: 1) require-ments to provide citizens with an "adequate oppor:tunity to participate in the development of theapplication," 2) conformity with all applicablecivil rights laws, and 3) compliance with legis-lative requirements to give "maximum feasiblepriority to activities which benefit low andmoderate income families."4

The Michigan Advisory Committee to the U.S. Com-mission on Civil Rights, under the legislativemandate to appraise the "laws and policies of theUnited States with respect to denials of equalprotection of the law," has undertaken a study ofthe racial and economic effects of the Housing andCommunity Development Act, its implementation inthe State of Michigan, and the effectiveness ofthose provisions of the law requiring civil rightscompliance, citizen participation, and priorityexpenditures for low and moderate income families.

On February 20, 1974, the Advisory Committee heldan informal hearing in Livonia, Mich., as a part ofits study. Livonia was chosen because of its nearlyall-white, middle-income population, the largenumber of blacks who work in the city but live else-where, lnd the city's suburban setting within theDetroit metropolitan area. Additional communities,representative of urban and rural areas, will be in-cluded in future inquiriea.

3. 10 Fresidentia1 Documents 1059 (1974).

4. Fed. Reg. 40144, 40145 (1974).

3

This report of the findings and recommendatiorsdrawn from the Livonia study is interim in nature.It reflects the conclusions reached after conductingmore than 30 personal intervi.clis with local residents,city officials, and Federal rapresentatives; a 1-dayinformal hearing in Livonia which included 22 witnessesrepresenting local, State, and Federal officials aswell as residents and private organizations concernedwith urban development; and a 3-month study of theact and related materials by Advisory Committeemembers' and Commission staff.

This report, an analysis of the application andfunding process during the first year under the act,is being published to assist the U.S. Department ofHousing and Urban Development (HUD) in the develop-ment of second and third year program guidelines, topoint out the urgency of the civil rights issuesinvolved, and to aid cities in future applicationsto achieve the purpose and expectations of the law.

II. CITIZEN PARTICIPATION

The Housing and Community Development Act of 1974requires the local government to certify thatprior to submiss!on of its application it has:

1) Provided citizens with adequate informa-tion concerning the amount of funds available forproposed community development and housing activi-ties, the range of activities that may be under-taken, and other important program requirements:.

2) Held at least two public hearings toobtain the views of citizens on community develop-ment and housing needs; and

3) Provided citizens an adequate opportunityto participate in the development of the applica-tion and in the development of any revisions,changes, or amendments.5

To comply with the performance standards of theact, a city must develop a process "which permitscitizens likely to be affected by community devel-opment and housing activities, including low andmoderate income-persons, to articulate needs,express preferences about proposed activ:tties,assist in the election of priorities, and other-wise participate in the development of the

5. 39 Fed. Reg. 40144 (1974).

6. 39 Fed. Reg. 40150 (1974).

4

5

In Livonia, city officials held five publicmeetings to discuss the act. (Transcript, p. 83)7The meetings were attended by approximately 95 ofthe city's 110,000 residents. (Transcript, p. 133)

The city also formed a community development citi-zens' advisory committee to assist in the identi-fication of needs, the development of a first yearprogram, the development of a list of needs forfuture program years, and to monitor the city'sfunds to see that they are used in compliance withthe approved program. Members were selected on afirst come, first chosen basis from a list ofLivonia residents who volunteered to serve on theccmmittee. All 14 rebidents who indicated aninterst in the committee were selected to serve.(Transcript, pp. 98, 112, 113)

The Livonia advisory committee inzludes membersfrom various economic backgrounds, various agegroups except the very young, and residents livingin the areas to be affected by the zity's develop-ment plan; approximately one-third of the membersare women. (Transcript, p. 170) 'The committeedoes not include any individuals "planning orexpected to reside" in Livonia.

Under provisions of the Housing and CommunityDevelopment Act, each applicant for funds is tocalculate the housing needs of two classificationsof citizens: those "already residing in thecommunity," and thnse "planning or expected toreside in the community'as a result of planned orexisting employment facilities."8 The act requiresthat "a local process be developed which permits

7. Page numbers in parPntheses cited here and14ereafter in text refer to statements made tothe Michigan Advisory Committee at its openmeeting in Livonia, Mich., Feb. 20, 1975, asrecorded in the transcript of that meeting. Thetranscript is on file with the U.S. Commissionon Civil Rights, Washington, D.C., and with theCommission's Midwestern Regional Office, Chicago,Ill-

8. 39 Fed. Reg. 40144 (1974).

4

citizens likely to be affect\ed by communitydevelopment and housing actiVities...to articulateneeds, express preferences about propased activ-ities, assist in the selectin of priorities, andotherwise participate in the development of theapplication...."9

Census data from 1970 indicate that more than19,000 citizens with incomes eligible for housingassistance (low or moderate) work in the` "existingemployment facilities" of Livonia but do not livein the city.10 These individuals potentially fallwithin the scope of the Housing and CommunityDevelopment Act's classification of those expectedto reside. (Transcript, p. 318) According to theU.S. Equal Employment Opportunity Commission(EEOC), 4,353 of Livonia's non-resident workers in1972, eligible for housing assistance, were black.11Women comprised approximately 30 percent of thenon-resident work force.12

However, there is no evidence that any of the morethan 19,000 non-resident members of the work forcewere included in the "citizen participation" activ-ities of the city or that any of the more than4,000 eligible black workers were contacted by tecity for input into Livonia's housing and communitydevelopment plan.

In addition to public meetings and the establishmentof a citizens' advisory committee, Livonia officialssought additional information on housing needs througha questionnaire distributed at the public meetingsand published in the local newspaper. A total of

9. 39 Fed. Reg. 40150 (1974).

10. U.S., Department of'Commerce, Bureau of theCensus', 1970 Census of Population, PC(2)-6D,Journey to Work, Table 2 (hereafter cited asJourney).

11. Michigan Department of Civil Rights,Minority Workers in Selected Detroit Area Cities(Prepared from 1972 Equal EMployment OpportunityCommission Reports for Michigan), Feb. 3, 1975.

12. Journey, Table 2.

229 questionnaires were returned and tabulated bythe city. (Transcript, p. 105)

The questionnaire was distributed primarily toLivonia citizens. Although citizens in theIfexpected to reside" category could have obtainedit by chance in the local newspaper, the city tookno affirmative steps to get responses from non-residents planning or expected to reside inLivonia.

The Department of Housing and Urban Developmenthas not given applicants a Aefinition of thenexpected to reside" category. Instead, HUD hasmaintained that the classification is self-explanatory. (Transcript, pp. 359, 360) HUD hasnot insisted that those persons "expected toreside" be included in'the citizen participationactivities of the applicant. Therefore, accordingto HUD officials, few applicants have includedrepresentation from the "expected to reside" intheir planning process. (Transcript, pp. 383,384)

Conclusions:

1) Livonia has made a good-faith effort toprovide citizen participation for residents of thecity but has not provided a means of participationfor those individuals "planning or expected toreside in the community." The Michigan Advisoi-yCommittee to the U.S_ Cornmission on Civil Rightsconcludes that the Housing and Community Develop-ment Act of 1974 includes the "expected to reside"within the act's coverage and that a11 likelybeneficiaries of the program are to be included inthe citizen participation requirements of the act.Therefore, persons "expected to reside" are anecessary component of the citizen participationprocess.

2) The failure of HUD to define clearly theItexpected to reside" classification and to compelapplicants to include such individuals in citizenparticipation activities has resulted in the

8

exclusion of such'citizen.. from the benefits ofthe Housing and Community Development Act inLivonia and in other cities in similar circum-stances.

3) The Livonia community development citizens'advisory committee has provided a means for itsmembers to participate in development of thehousing and community development plan. The"first come, first chosen" process of selectingparticipants, however, does not insure that thacharacteristics of the total population of thecommunity will be represented on the committee.

Recommendations:

1) The Michigan Advisory Committee to the U.S.Commission on Civil Rights recommends that theLivonia city council amend its procedures forcitizen participation in developing future housingand community development applications by:

a) actively seeking out incomeeligible members of the Livoniawork force to participate in thecitizens' advisory committee;

b) providing additional public hearingsand affirmatively seeking the parti-cipation of persons "expected to re-side." This affirmative aceion bythe city could include distributionof information and invitationsthrough the various employment fa-cilities in the city, the pnionsrepresenting the work force, andthrough information placed in news-papers with primary circulations,outside of Livonia's city limitsbut within the area from which thework force is drawn.

2) The Michigan Advisory Committee recommendsthat the Secretary of the Department of Housingand Urban Development issue a memorandum of

i7

9

clarification to all regional and area HUD officesand to the Housing and Community Development appli-cants defining the classification "expected toreside" and indicating that cities which documentthe housing needs of those individuals "planningor expected to reside" must also provide for theirinclusion in the applicant's citizen participationactivities.

,3) The Michigan Advisory Committee recommendsthat the Livonia city council amehd its selec-tion process for the community development citizens'advisory committee, as it pertains to presentLivonia residents, to insure that the makeup ofthe committee is representative of the populationof those "likely to be affected" by housing andcommunity development activities.

III. PROVIDING FOR THE ELIGIBLE

The Housing and Community Development Act of 1974requires that the funds available under the act beused "principally for persons of low and moderateincome" in an attempt to provide them "decenthousing and a suitable living environment...."13

The act requires an areawide or regional approachto the housing needs of the nation, requiring thatfunding applications be "developed in accordancewith areawide development planning and nationalurban growth policies." Rigid conformity withexisting areawlde plans is not required but "theapplicant must give careful consideration toapplicable areawide plans."14

The act further encourages an areawide approach tohousing needs by requiring cities to measure notonly the needs of their own residents but also ofthose citizens who might be expected to becomeresidents because of employment facilities.15Although local governments were designated by

13. 39 Fed. Reg. 40137 (1974).

14. 39 Fed. Reg. 10144 (1974).

15. 39 Fed. Reg. 40144 (1974).

10

11

Congress to recetve, plan for, and expend thesemonies within their own areas, they are requiredto consider the needs of the total area beyond thecity limits and the regional-impact of theirdecisions.

County and regional needs and plans are to beconsidered as they relatO to both local andareawide housing and\job markets for low andmoderate,income citizens.

Once the housing needs\of a community aredetermined, the Housing and Community Develop-ment Act provides funds to meet those needs undertwo separate programs. The Housing AssistancePayment Program, known as "section 8," providesrent subsidies to eligiblelamilies for thedifference between the rent charged and theamount the recipient is able to pay. The Com-munity Development Program provides funds forneighborhood improvements essential to a livableenvironment and decent housing. Such improve-ments include demolition of blighted housing,development of water and sewer systems, and citybeautification programs.

In order to receive funds, the applicant is re-quired to submit a 3-year "community developmentplan summary,"..a detailed, first year "communitydevelopment program," and a "housing assistanceplan" which describes the housing needs of thecommunity, the plan to provide for those needs,and the annual goals for fulfilling the plan.16

Funding applications are reviewed by the Depart-ment of Housing and Urban Development and areapproved unless:

1) "Ot the basis of significant factsand data, generally available...and pertainingto community and housing needs and objectives,

16. 39 Fed. Reg. 40144 (1974).

c14.1?

12

the [HUD] Secretary determines that the applicant'sdescription of such needs and objectives.is plainlyinconsistent with such facts or data," or

2) "On the basis of the application, theSecretary determines that the activities to beundertaken are plainly inappropriate to meetingthe needs and objectives ideazified by theapplicant," or

, 3) "The Secretary determines that the,application does not comply with the require-ments of this part or other applicable Federallaws, or proposes activities whiCh are ineligibleunder this part."17

Livonia's application for funding under theHousing and Community Development Act identifiedthe needs of 252 "elderly/handicapped" house-holds, 470 "non-elderly/handicapped" households,and 41 households "expected to reside." (See

Exhibit I)

The first year goals of the "housing assistanceplan" provide for meeting the needs of 150"elderly" households. The first year programfor the "community development plan" providesfor rehabilitation assistance to 18 additional"elderly" households, 29 "non-elderly, largefamily" households, and 9 "non-elderly" house-

holds. (See Exhibit II)

Under HUD review guidelines, Livonia's applica-tion must not be based on information inconsistentwith generally available facts and data. Popula-

tion information provided by HUD indicates thatamong the city's residents are 246 eligible"elderly" households and 498 eligible "non-elderly"

27. 39. FLd. Reg. 40145 (1974).

EXHIBIT I

HOUSING ASSISTANCE NEE)S OF LOVER INCOME HOUSEHOLDSSUBMITTED BY LIVONIA IN TTS HOUSING AND C-1011.1NTrY DEVELOPMFST APPLICATION

U.I. 9A9T9t9y9 2* NOV919', 0%9 UNSIAPO 0119949941Heir1I93 AMISTANCS 91.99

TACLg i HOUSING A5SISTANC6 NZEDS OF LOWER INCOME HOUSEHOLDS1, evaSI Al Pv4,C01%

Citv or Livant - Mich loan

2 i,CAT.12:4 4W, ;.fs s. 6 09 MAL

990/4 Aid Yeaol

hit:VO It3 Ov r40:::a1,:etu3

IleUrCtS OPIlt=1:1"4 ktZD3

90994 91.9CF'Itikahn.st topciPer

if ..to,..........

Tow+ Lev.t ...olia" QIN. Trial 1.4.1.

Pro,..es"

.,Qom. V.A.11Teta 9.....4.0. 0199,

,..i& ciailiagr:Tror rum:11,1w

mo:zirAcc h.ft. 41,4,,,,nyna

t Taut.- 722 113 609 Ian

e-thon iv c t Less.

t cct rt.' A0,o ...v.o.,:nna 25Z_ _.______t - _________....- / ...: , (v."! ItLvrot.: :A 'FLO 470-20----,232

93 ! 377111, 017.N.ACCO 01 TO -..:

ri5 'LAM)1. TOTAL. 0

0ft

41

0 0V.. VI-Lnnty iItg, n,,ez+crreo 9 0

Li aI ii,vy c t co plmA..0CR.1,1 2C. A.....,aler441.,

TKOTTO TO 11MD: ft1 LC:ttiT

V 112Tal. 6 35..----v. c_atev, ANL, ..f.a,cf,..-- 14 1 1. L 13

V . 5 ! 729 wel.itt,91,91.10..v...7 ellk^W,Ia SAT& tItscs lAti ,I.COC2

Sewn= A. 1, A. 2, A. $ HUD, EMAD Section. The number of elderly requiring onittonce may be somewhat gyemested, mg 162Public Housing Units for the elderly,were occupied in liwznia between March 1970 'end Morch 1972.

C. It is anticipated that there will be approximately 1,700 additional household' in lAvnIe within the next throeyaws, eathe mribas or occupied households in the City inereesed by 1,714 front April 1, 19710 to July 1, 1973 (From SEMC00).

The r&M9609 of fa eili e. requiring auistance me &heated by consorting the proportion al familial whet requited osistanto el1970, and applying them ratios ta the expected number of odelitional leneeholds during the moo three rim.

. .

..... .--...-----.*Illamosi wry If oe meftedto I ime.ami so ow* vt, forassrf."'foe 4. 0.0., IN.4.0.

elleinitte itsto

14

EIRMIIT xx

ANNUAL GOAL FOR HOUSING ASSISTANCESUBMITTED BY LWONIA IN /TS HOUSING MD COMMUNITY DEVILOTMENT APPLICATION

.

&SA IA:AA A I 0440' or K. AIMS I...1444 O. 1,1.1VTAI A. rtcwasiho I.r.IZTALCI. I LAs,

TATILE 111 ftin.:11AL C.".! i L. iitiLl:1111: 1'41.f.:13TA!:1Es. mow OA Art't. MO

COX qf kivanja. Michigan ............

I. orrucertuw raut.tama .. 0410011.A1

ti MAKNOM.MT4. Pm:stmts. TULL

rTA,A To:

IL CATCCOnT

CI ar.41... Rose,' .1 o1.1 s..I

hill% WC till rd.)4t.

Lrf4ril5?Art". 14111 Un.tc

04 WNW%1.0

TVPI T Cr T5-fssIto.. Lnt 1.Ado f vo 4 .:7;

L. TOIAL _A___18

.............,

___Ia....

1

-u.8I. et.tarnt.v

s. sitantLate.t.v 1...r.i.

9

-,_14_L 0,040

I. 142:10tI6 Of PLLILTIM.::::

L MOO

sr.C11404 a.

I

b. LO IlLf/CL 151.Atilf /6 26

I. oriscnI. sten . o.r.c., s

totsc.fsv t I.00.whtt. S.

L 0145 if... VA40/414 NOML PO.

Ls. LOCAL rf.CGAAli.;

S. 01140.4 l.predtP

C. extt.f.f:ATiou to I.nIc..,741.;Note Livonia obiects tofor Livonia.

"milt the present those, theafruct about 150 spits of housingSubsidy Progtam Dufiagprice tango of 515,000-530,000City plaris to tehaltititatesl1ttonal structutcs wilt alsooat yet beim determined._yarn without olsistonce

the State waiver. The City reserves tho right to roview any 14140A plan

C1ty Council of Llsonio is considering a proposal hy a developst to conwith some of tha occupants laming (mist od under the Straion A Rent

Auutot 1973 cod August 1974, 614 houses in the City ware sold within oand 59 hnrnes in that price rcoge wet. for tole in August 1974, Th.

16 huuses through a grant an,i/or loan ptogront in the first yoar. Ad-be rehabilitated in the so,eond or third program year, but the number has

Aho, fe is anticipatt4 that property oovers will rehaisilitate 30 structuresat putt of the Cade Enforcement Pcogrant.

Ardra,00°0 irrr, A w., V.'S tr.e.-4, 044 overt*

4 e4

15

households. 18 Data from the Bureau of the Censusand the Equal Employment Opportunity Commissionindicate that the employment facilities in Livoniadraw approximately 19,472 non-residents into thecity's work force who are eligible for housingassistance.19

Livonia's application must also spell out fundingactivities which are appropriate for meeting theneeds and objectives identified in the housingplan. The needs identified by Livonia include atotal of 763 households of which 35 percent areidentified as "elderly" and 65 percent as

"non-elderly."

Livonia's housing plans include assistance to 206households of which 82 percent are "elderly" and18 percent are "non-elderly." (See Exhibits

and II.)

The application must also comply with the otherrequirements of the act, including "careful con-sideration of applicable areawide (housing anddevelopment) plans."

These plans would include those of the WayneCounty Planning Commission and the SoutheastMichigan Council of Governments (SEMCOG).

In its "Comprehensive Planning Process for WayneCounty," the Wayne County Planning CommissioncoLcludes that:

...the full range of dwelling types--from single family (large and smalllot) to high density multiple; thefull range of family cycles from the

1H. Coalition for Block Grant Compliance,Review of Applications for Community DevelopmentBlock Grant Funds Under the 1974 nousiny and Com-munity Development Act (March 1975), p. 1.

19. Journey, Table 2.

fa

16

new young family to the seniorcitizen; the full range of economiclevels from low to upper income; andthe full spectrum of ethnic groupsshould have access to a place to livenear the employment, recreational, edu-cation, and cultural mix of activitieswhich they choose.

The commission also states as one of its goalsa more even distribution of population character-istics throughout the county, "with more balancedblending of ethnic, economic, and culturalsegments."20

The Southeast Michigan Council of Governments(SEMCOG) is a voluntarYNassociation of localgovernments in southeast Michigan which servesto develop and coordinate long-range, region-wide planning. (Transcript, p. 307)

The association has a development plan similarto that of the Wayne County Planning Commission:

Low cost tine low rental housing op-portunity on an open occupancy basismust be made available throughout theregion, so that people at the lowerrungs of the economic ladder have awider choice of location andtype of

4

housing.... Suburban developmentparticularly must provide a variety ofhousing types at a range of cost andzental levels, in order to meet ade-quately the housing requirements ofall of the people of the region....Housing opportunities for the poorand minority groups are'generallylimited to certain areas of thecentral city. A11 areas of the re-gion need housing in various econom.kc

20. Wayne County Planning Commission, Compre-hensive Planning Process for Wayne County (1974),pp. 12, 47.

17

ranges, open to all families. The

opportunity to locate residentiallyoutside the central city is of in-creasing importance as more and morejobs become available in suburbanareas due to the spread of economicenterprises.... 21

To comply with the Housing and Community Develop-ment Act requiremeats, Detroit-area applicationswould have to reflect consideration of the develop-ment. plans of both SEMCOG and the Wayne CountyPlanning Commission. Such consideration wouldinclude economic, age, and racial mix both withinthe city itself and within the county and region asa whole. Clustering of racial, age, or income groupswould be discouraged either in individual cities orin geographical sections of the region.

The housing and community development plan sub-mitted by Livonia sleks to use housing andcommunity development funds to assist 150 elderlyhousholds in rent pwrments and another 18 elderlyhouseholds in rehab itation efforts. (See

Exhibit II) The application states that thecity is considering the construction of about 150units of new elderly housing on one of seven pro-spective sites wiLhin the city. No additionalunits of low or moderate income housing arebeing considered for non-elderly families or forlarge families.

Livonia's decision to provide principally for thehousing needs of the elderly has been repeated inother suburban Detroit communities as well. A

survey of 26 applications from the Detroit suburbs

conducted by the Coalition for Block Grant Com-pliance, a federation of 10 civil rights, religious,and civic groups, found that all 26 communitiesintended to use their funds primarily for housing

21. Southeast Michigan Council of Governments,Goals for the Region (Adopted by the GeneralAssembly of SEMCOG, Mar. 1, 1974).

18

assistance to the elderly. Detroit, on theother hand, applied for funds to be used princi-pally for non-elderly and large famil6i hod4ngassistance. This trend, according to4the coali-tion, indicates that housing and.communitydevelopment'funds will.;lave the exact oppositeeffect in the Detroit metropolitan area than.theone Intended By law: low and moderate income,non-elderly families will continue to be clusceredin ti;a inner city of Detroit, while suburban com-munities will remain'devoid of housing opportunitiesfor low and mbderate income non-elderly families.22

Conclusions:

1) The city of Livonia has made a good-faitheffort to identify the housing needs of itstesidents, both the "elderly" and the "non-elderly."

2) Livonia's aSsessment of the housing needs ofpersons "expected to reside" is inconsistent withpublicly available information. -City officials;including the city attorney and'the city planner,indicated that they did not understand the meaningof the "expected to reside" category and that theydid not intend to consider the needs of personsIfexpected to reside" until the needs of existingresidents had,been met. (Transcript, pp. 128-131)The city did not use publicly available censusdata, including Journey to Work statistics, indetermining its "expected to reside" population.This data indicates that more than 19,000 workerspotentially qualify ap persons "F"anning or ex-perted to reside" in Livonia. 11....iever, the city

did not attempt to determine whe-her-those indi-viduals were candidates for assistance,'inquireas to their housing needs, or provide housingassistance where definite needs were found.

Joe Guggenheim, coordinator, Coalition forBlock Grant Compliance, telephone interview,May 9, 2975.

27

19

3) Livonia's housing goals are inconsistentwith their assessment of housing needs. Althoughthe city concluded that "elderly" persons made up35 percent of,the :otal housing needs, it plandedto use 82 percent of the first year housing assis-tance for the elderly. While the city found that"52on-elderly" and 'large family households" madeup 65 percent of the city's housing needs, itplanned to use only 18 percent of the first yearassistance for those needs.

4) The Livonia housing plan does not complywith the Housing and Community Development Actrequirement to give "careful consideration .toapplicable areawide plans." Both the WayneCounty Planning Commission and SEMCOG stipulatethe need for economic, age, ethnic, and racialbalance in housing opportunities within bothindividual cities and the entire regional area.The leivonia plan provides only for the elderly,giving very little consideration to expanding thehousing opportunities of non-elderly, largefamilies or persons expected to reside in Livonia.Viewed as a part of an areawide trend to fundprimarily elderly housing in the suburbs whilelarge family, low income households are fundedonly in the city of Detroit, the Livonia planis inconsistent with the intent of the Housingand Community Development Act to increase thehousing opportunities of the poor and tp pro-mote economic, age, and racial diversity inneighborhoods.

Recommendations:

1) The Michigan Advisory Committee to the U.S.Commission on Civil Rights recommends to the cityof Livonia that it submit an amended housingassistance plan under the procedures describedin the Housing and Community Development Act rulesand regulations, Title 24 §570.305. To insurecotpliance wil:h the Housing and Community Develop-ment Act'and t, provide housing to all eligiblerecipients, the amended plan should:

20 ji

a) include-an accurate identification oriie11expected to reside" population and an assessment

of their housing needs. Such an assessment shouldinclude information systematically gathered from asignificant sample of the work force through bothinterviews and questionnaires and current data onthe size or-the work force gathered through localemployers'and all available census data;

b) bring the "goals" of thc housing assis-tance plan into conformity with "needs" as assessedthrough the amended community participation pro-cedure; and

c) bring the housing assistance plan intogeneral compliance with applicable areawide plans.Such compliance would further the ethnic, economic,racial, and age group balance of housing opportunities.

:29

CIVIL RIGHTS COMPLIANCE-

Regulations issued pursuant to the Housing andCommunity Development Act require that prior tofunding, an applicant must certify-that itshousing program "will be conducted and adminis-tered in conformity'w1th Title VI of the CivilRights Act of 1964 (Pub. L. 88-352); Title VIIIof the Civil Rights Act of 1968 (Pub. L. 90-284);section 109 of the Housing and Community Develop-ment Act of 1974; section 3 of the Housing andUrban Development Act of 1968; Executive Order11246; Executive Order 11063, and any HUD regula-tions issued to implement these authorities."23

(See Appendix.)

To determine compliance with'this portion of theact, each recipient is "required to document the

actions undertaken to assure that no person onthe ground of race, color, national origin, religion,

or sex has been excluded from participation in,

denied the benefits of, or otherwise subjected todiscrimination under any activity funded under this

[act]." Each recipient is also "required to docu-ment the actions undertaken to further fairhousing 1124

23. 39 Fed. Reg. 40144 (1974).

24. 39 Fed. Reg. 40149 (1974).

21

30

22

The act further requires affirmative action onthe part of recipients to overcome exclusionaryor discriminatory housing trends:

In administering a program or activity....regarding which the recipient haspreviously discriminated against personson the ground of race, color, nationalorigin, or,sex, the recipient dust takeaffirmative action to overcome the effectsof prior discrimination. Even in theabsence of such prior discrimination, arecipient...should take affirmative actionto overcome the effects of conditionswhich would otherwise result in limitingparticipation Zin activities funded underthis ac.y by persons of a particular race,color, national origin, or sex. Where pre-vious discriminatory practice or usage tends,on the ground of race, color, national origin,or sex, to exclude individuals from partici-pation in, to deny them the benefits of,or to subject them to discrimination underany program or activity to which this La-ct7

applies, the recipient has an obligation totake reasonable action to remove or over-come the consequences of the prior dis-criminatory practice or usage, and toaccomplish the purpose of the act.25

Housing and population data for Livonia indicatethat the city has few low income residents and fewblacks or other minority persons living in the city.According to 1970 census figures, 6.5 percent of thefamilies living in the Detroit metropolitan area hadinomes less than the poverty level. Among Livonia

residents 1.7 percent of the families had povertyincomes. 211

25. 39 Fed. Reg. 40147 (1974).

26. U.S., Department of Commerce,Census, 1970 Census_of Population,of the Population Vol. 1 Part 240(hereafter cited as Population),

Bureau of theCharacteristicsMichigan, Table 90

23

A 1970 census study of the housing characteristicsof Livonia showed that .of the 27,686 occupied unitsin the city, 2 were occupied by blacks.27 Addi-

tional 1970 census data 'showed that one out ofevery three white members of the Livonia work forcewas housed in the cIty. Among blacks, only one outof every 500 members of the work force waS housedin the city.28

Relativily little housing was available in Livoniaon a rental basis. In 1970 approximately 25 per-cent of the housing in Michigan was rental type.In Livonia, however, only 7 percent of the housingwas in the rental category while 93 percent was ofthe "purchased," "owner occupied" variety. Housingvalues and rents were also higher in Livonia thanthey were in the State as a whole. The median rentpaid in the State in 1970 was $93, and in Livonia ,

the median rent was $164. The median value a ahouse in the State was $17,000, and in Livonia themedian value was more than $27,000. In addition,

there was less housing available to prospectivebuyers or renters in Livonia than in the State as

a whole. The vacancy rate for rental housing;was20 percent lower in Livonia than in the State, andthe vacency rate for owner-occupied housing was.more than 36 percent lower in Livonia than in the

State.29

270 U.S., Department of Commerce, Bureau of theCensus, 1970 Census of Housing, General HousizyCharacteristics, HC(1)-Al, Table 8 (hereaftercited as Housing).

28. Journey, Table 2. 1970 census data for thenumber of blacks living in Livonia are inconsistent.The population census indicates a tota1 of 41 blackindividuals; housing data show two units occupied byblacks; and Journey indicates 6 black persons who

live and work in the city.

29. ttaaaTE, Table 8.

24

The housing trends in Livonia have been noted bythe Department of Housing and Urban Developmentin the previous denial of Federal funding to thatcity. In 1972 HUD denied certification of thecity's Workable Program (a plan for community im-provement required as, a prerequisite for HUDfunding) because the city failed to show evidenceof an "affirmative approach toward providing housingfor a wide spectrum of low and moderate incomeneeds...."30 The denial of certification resultedin the city losing a $1.5 million grant from HUDfor storm sewers. In 1974 the Equal OpportunityDivision of the Detroit Area Office of HUD recom-mended that a 701 Comprehensive Planning AssistanceGrant to Livonia be denied because "as in the past,there has been no planning for low income housing,to accoMModate fami1ies."31

.

Enforcement,of the civil rights provisions of theHousing and Community Development Act is providedthrough the A-95 Project Notification and ReviewSystem,32 and through the Equal Opportunity Divisionof HUD.

The A-95 review system gives local, State, andregional agencies the opportunity to review andcomment on applications for Federal funds priorto the actual time of application. The purpose

30.., William C. Whitbeck, area director,Dep4r_t_ment of Housing and Urban Development,letter to Edward H. McNamara, Maior of Livonia,March 1972.

31. Ruth Featherstone, acting area director,Equal Opportunity Division, 11 partment of Hous,ingand Urban Development, letter

1to Hank Levandowski,

area chief, Planning and Relo ation, 'IUD, May 1974.

32. Pub. L. No. 93-383 1194(e) (Aug. 22, 1974).

25

of the process is to permit those agencies theopportunity to point out potentially adverse orbeneficial aspects of a proposed project beforefunds are made available. Although A-95 reviewagencies do not have the authority to make afinal decision on funding, their comments areincluded in the application and considered bythe Federal funding agency if they cannot besatisfactorily resolved prior to the submissionof the application. (Transcript, pp. 308-311)

The Michigan CiCril Rights Commission has theresponsibility for A-95.civil rights review inMichigan. This provides an opportunity in ad-vance'of the actual funding to comment upon thecivil rights implications of a given community'sapplication. (Transcript, pp. 331-333)

The Equal Opportunity Division of HUD conductsboth a review of applications prior to funding,,known as "front end" review, and an ongoingmonitoring program to insure continued compliancewith the civil rights requirements of the law.The division has indicated that the front endreview will be minimal. According to a memo-randum from the HUD Assistant Secretary for \Equal Opportunity, local HUD officials werereview applications to ascertain if the appliCant'shousing assistance plan "substantially impairsthe achievement of" either the reduction of theisolation of Income groups within communitiesand geographical areas or the promoting ofgreater choice of housing opportunities for

. citizens. The same memorandum, however,stated that, "Congress intended to limit theamount of front end review of applications. Con-sequently, reviewers will for all practicalpurposes be samnilg,applications rather thanconducting indepth reviews...."33

33. Gloria E.A. Toote, former Assistant Secretary forEqual Opportunity, U.S. Department of Housing andUrban Development, memorandum to all regionaladministrators, Dec. 19, 1974.

26

The EqUal Opportunity Division of HUD is relying.primarily on its "ongoing monitoring" effort toinsure compliance with the law. Area and regionalHUD officials serving Michigist indicated thatduring each of the first 3 years of the programapproximately two or three compliance reviewscould be conducted.34 (Transcript, pp. 394-396)At least 72 Michigan communities are entitled toreceive funds under the act. (Transcript, p. 354)

Conclusions:-

1) In its funding application, Livonia did nottake "affirmative action to overcome the effectsof conditions...limiting participation by personsof a particular race, color, national origin, orsex. ft The city's application demonstrates noaffirmative action to fulfill its "obligation totake reasonable action to remove or overcome theconsequences of prior discriminatory usage."Instead, the Livonia plan locks the city into itsalready "all white" and "middle income" housingcharacteristics.

2) The policy of the Department of Housing andUrban Development to "scan" Housing and CommunityDevelopment applications for compliance with civilrights requirements rather than conducting completeand thorough reviews, jeopardizes those provisionsof the law requiring affirmative action to over-come prior discriminatory housing characteristics.

3) ,The number of compliance reviews planned byHUD for the first 3 years of the program will notadequately insure enforcement of civil rights laws.

34. Lou Watson, Regional Administrator for EqualOpportunity, Department of Housing and UrbanDevelopmeAt, interview in Chicago, I11., Feb. 51975.

27

Recommendations:S.

1) The Michigan Advisory Committee to the U.S.Commission on Civil Rights recommends that theLivonia city council amend its application forfunding, as provided in section'570.305 of theFederal Code of Regulations, to include anaffirmative program to overcome the effects ofconditions which have resulted in the limited,participation of certain racial,and economicsegments of the population in the Livonia housingmarket. Such an affirmative plan might includea more complete analysis of the number and natureof those persons "expected to reside," provisionin the housing assistance plan for meeting theneeds of those persons "expected to reside," andthe creation of the city's own, ongoing civilrights monitoring effort through the expansionof the duties, responsibilities, and capacitiesof the present Livonia Human Relations Commission.

2) The Michigan Advisory Committee recommendsthat the Equal Opportunity Division of HUD conducta more vigorous front end review of applicationsto insure compliance with those provisions of thelaw requiring affirmative action to overcome pre-vious discritinatory housing trends, increaseddiversity of housing opportunities for low incomepersons, and the reduction of the isolation oflow income groups. In the event a housing assis-tance plan does not comply with these requirementsof the law, it should be denied Federal funding.

3) The Michigan Advisory Committee recommendsthat the Secretary of Housing and Urban Develop-ment allocate out of available funds additiOnalamounts for equal opportunity and civil rightscompliance reviews during the current fiscal year.The Advisory Committee further recommends that theSecretary request in the ensuing fiscal yearsadditional funds to conduct a broader range ofcivil rights compliance reviews. The Committeewould also urge the Congress to act favorably onsuch a request.

28/

APPENDIX

Civil Rights Laws Affecting the

Housing and Community Development

Act of 1974

37

29

Civil Rights Act of 1964, Title VI (Pub. L.

No. 88-352).

This legislation requires every Federal agencywhich is empowered to give Federal grants, loans,or contracts, to insure thai no person wi I bedenied. the benefits of the activity funded therebyon the basis of race, color, or national o igin.In order to carry out the requirements of thisTitle, Federal agencies are to issue rules andregulations, approved by the President. To insurecompliance with this mandate, Federal agencies mayterminate, refuse to grant, or to continue assis-tance to any recipient as to whom there has beenan express finding on the record, after oppor-tunity for hearing of a failure to comply. Federalbenefits distributed directly to individuals(social security, veteran's benefits, etc.)are notaffected by Title VI. Federal,insurance or guaran-tees (FHA insured loans, eta.) are also not coveredby Title VI.

Civil Rights Act of 1968 Title VIII(Pub. L. No. 90-284).

Title VIII contains the main Federal legislationrelating to fair housing. It prohibits discrimina-tion against any person because of race, color,religion, or national origin. The law coversrental or sale of federally-assisted housing andall private housing generally over four units orany housing advertised or sold through the use ofreal estate agents. Discrimination in the financingof housing and in the provision of brokerageservices is also prohibited. Enforcement of thefair housing provisions of Title VIII is providedthrough a complaint mechanism within the Depart-ment of Housing and Urban Development (HUD).Provision is also made for the commencement of acivil action in Federal district court on behalfof an aggrieved party.

:38

30

Housing and Community Development Act of1974, Pub. L. No. 93-3=3, §109.

Section 109 is the nondiscrimination provisionof the Act. It provides that the benefits ofprograms or activities funded under the Actshall not be denied to any person on- the basisof race, color, national origin, or sex. Thesection spells out the procedures HUD is tofollow when it is determined that-a State orunit of local government is not complying withthe nondiscrimination requirements of the Act.These procedures may culminate in the initia-tion of a civil action by the U.S. AttorneyGeneral in Federal Court. ,

2

Housinq and Urban Development Act of1968, Pub. L. No. 90-448, §3.

This section requires the Secretary of HUD toassure to the extent feasible that opportunitiesfor training and employment in connection withthe planning, construction, rehabilitation, andoperation of certain federally assisted housing,be given to lower inconie persons residing in the

area of such-housing. HUD regulations includeactivities funded under the Housing and CommunityDevelopment Act of 1974 in this requirement.

. (39 Fed. Reg. 40144 (1974))

Executive Order No. 11246, 3 C.F.R., 1964-1965 Comp.. p. 339.

This Executive order originally contained fourparts. Part I bars discrimination in Federal em-ployment. Part II outlines duties of the Secretary ofLabor and contracting agencies designed to assurethat every government contract would provide thatthe contractor would not discriminate against em-

33

31

ployees or applicants because of race, color,religion, or national origin. Part II was amendedto add sex as a prohibite4 basis of discrimination,effective Oct. 13, 1968. 'contractors are obligatedto take affirmative action o combat discriminationand must advertise and post ob openings accordingly.Subcontractors are also boun by the provisions ofExecutive Order 11246, and co pliance reports ofcontractors must also include nformation on thenondiscrimination policies of any labor union withwhich the contractor has a collctive bargainingagreement. The Secretary of Labor is empowered toconduct investigations or to work through the con-tracting agencies or other Federal, State, andlocal agencies to secure compliance. Hearings maybe held for compliance, enforcement, or educationalpur oses. The sanctions include publication ofviolators' names, cancellation of confracts, andrecommendation for further prosecution under theCivil Rights Act of 1964. Part III of this Executiveorder describes the nondiscrimination provisions infederally-assisted construction or rehabilitationcontracts. Miscellaneous administrative detailsare spelled out in Part IV.

Ekecutive Order No. A0631 3 C.F.R., 1959-1963 Comp., p. 652.

Executive Order 11063 was designed to insure equalopportunity in federally-assisted housing. It pro-vides that all Federal departments and agencies takeaction to prevent discrimination because of race,color, creed, or natignal origin in the sale, leasing,-or rental of property owtied or operated by theFederal Government or built with the aid of Federalmonies, including loans guaranteed by the FederalGovernment or property.developed or cleared withFederal financial assisfance. Implementation ofthis order is coordinated by the President's Com-mittee on Equal Opportunity in Housing. Enforcementis to bp assured through hearings held by the Cam-mittee or officers of agencies subject to this order.

32

Sanctions include cancellation or termination ofcontracts and agreements or, in the case of alending institution, refusal to approve thatinstitution as a beneficiary, under any otherFederal program administered by the agen6y or toterminate such approval if previously given.Other sections of the order establish thePresident's Committee on Equal Opportunity inHousing and.detail its powers and duties.