(b) "Commissioner" means the Assistant Secretary-Federal Housing Commissioner or his authorized representative.

66

(c) Fund" means the Low and Moderate Income Sponsor Fund.

(d) "Nonprofit organization" means a corporation or association organized for purposes other than the making of profit or gain for itself or any persons identified a therewith and which the Commissioner finds is in no manner controlled or di- 4 rected by persons or firms seeking to derive profit or gain from its operation. § 52.7 Scope of assistance.

The Commissioner may make loans from the fund to encourage and facilitate the construction or rehabilitation of housing for low and moderate income families under any federally assisted program. The conditions of eligibility for applicants and applications for such loans and the terms and conditions under which the proceeds of such loans may be used are specified in this part.

§ 52.13 Filing, processing and approv ing applications.

(a) The application shall be filed, on a form prescribed by the Commissioner, with the FHA insuring office having jurisdiction over the area in which the applicant proposes to construct or rehabilitate a housing project for low or moderate income families to be financed with the assistance of any Federal program.

(b) Upon a determination by the FHA insuring office director that the financial assistance applied for will carry out the purposes of this part and that an applicant is eligible for such assistance, the application will be submitted to the Regional Administrator for final approval.

(c) After review, and upon approval by the Assistant Commissioner for Multifamily Housing, the proceeds of the loan may be disbursed by the Commissioner. § 52.15

Eligible applicants.

(a) To be eligible for a loan, an applicant must be a nonprofit organization.

(b) An applicant for a loan shall have available funds or assets considered adequate by the Commissioner to defray no less than 20 percent of the estimated expenses of planning a project and of obtaining financing under a federally assisted program.

§ 52.17 Use of loan proceeds.

A applicant shall agree, in form satisfactory to the Commissioner, to use the loan proceeds for the expenses of planning the rehabilitation or construction of a project and for obtaining the financing of such project under a federally assisted program. The plans for such project shall contemplate its ownership by the applicant or another nonprofit organization satisfactory to the Commissioner.

§ 52.20 Maximum amount of loan.

The loan shall not exceed 80 percent of the total reasonable and necessary costs expected to be incurred in both planning the project and of obtaining financing under a federally assisted program. These costs may include preliminary surveys and analyses of market needs; preliminary site engineering and architectural fees; options for site acquisition; application and mortgage commitment fees; construction loan fees and discounts; and such other items of cost as may be approved by the Commissioner. The loan proceeds shall be disbursed on the basis of 80 percent of the Commissioner's estimate of the total reasonable costs for such planning and for obtaining such financing. The loan contract shall provide for an adjustment of the loan to an amount which will not exceed 80 percent of the actual expenditures for such total costs.

§ 52.25 Waiver of repayment.

The Commissioner may waive the repayment of all or such part of a loan that he determines cannot be recovered from the proceeds of a permanent loan made to finance the rehabilitation or construction of a housing project.

§ 52.27 Maturity of loans-contract provisions.

The contract for a loan shall provide for repayment by the borrower within 6 months following the first disbursement of funds pursuant to the contract or at such time as the borrower recovers his expenses from the proceeds of the permanent financing, or at such other time as may be fixed by contract with the Commissioner. The Commissioner may extend the time for repayment under such terms and conditions as he may prescribe.

§ 52.30 Interest on loans.

No interest shall be charged to a borrower under the provisions of this part.

ilar practices under title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d2000d-5, or Executive Order 11063 of November 20, 1962, on Equal Opportunity in Housing (27 F.R. 11527-30, Nov. 24, 1962) or other applicable law, such person may also be subject to action by the Department of Housing and Urban Development or other Federal agency under the rules, regulations, and procedures prescribed from time to time pursuant to title VI or Executive Order 11063 or other applicable law.

§ 71.2

Definitions.

As used in this part,

(a) "Department" means Department of Housing and Urban Development.

(b) "Discriminatory housing practice" means an act that is unlawful under section 804, 805, or 806 of title VIII.

(c) "Dwelling” means any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof. (d) "Family" includes a single individual.

(e) "Person" includes one or more individuals, corporations, partnerships, associations, labor organizations, legal representatives, mutual companies, jointstock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, receivers, and fiduciaries.

(f) "Secretary" means the Secretary of Housing and Urban Development.

(g) "State" means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, or any of the territories and possessions of the United States.

(h) "Title VIII" means title VIII of the Civil Rights Act of 1968, Public Law 90284, 42 U.S.C. 3601-3619.

(i) "To rent" includes to lease, to sublease, to let, and otherwise to grant for a consideration the right to occupy premises not owned by the occupant. Subpart B-Procedures for Enforcement of Complaints Against Discriminatory Housing Practices

ing of title VIII and this part, it shall be so recorded under § 71.16. Where additional information is required for purposes of perfecting a complaint under title VIII, the Department will promptly advise what additional information is needed and will provide appropriate assistance in the filing of such complaint. At the same time, if the information disclosed so warrants, appropriate enforcement procedures may be initiated by the Department under E.O. 11063 on Equal Opportunity in Housing or title VI of the Civil Rights Act of 1964, and the information may also be referred to any other Federal, State, or local agency having an interest in the matter.

§ 71.12 Complaints by persons aggrieved.

Any person who claims to have been injured by a discriminatory housing practice or who believes that he will be irrevocably injured by a discriminatory housing practice that is about to occur (in this part called "person aggrieved") may file a complaint within 180 days after the alleged discriminatory housing practice occurred. Such complaint may be filed with the assistance of an authorized representative of the person aggrieved, including any organization acting on behalf of the person aggrieved. § 71.13 Where to file complaints.

Complaints may be filed with the Secretary by mailing them to Fair Housing, Department of Housing and Urban Development, Washington, D.C. 20410, or by presenting them at any regional or field office of the Department, including any field office of the Federal Housing Administration. Complaints will be processed through the Department's Regional Administrator having jurisdiction in the State in which the alleged discriminatory housing practice occurred or is about to occur. A list of Department Regional Offices with their addresses and areas of jurisdiction appears as an appendix to this part.

§ 71.14 Contents of complaint.

Each complaint should contain substantially the following information: (a) The name and address of the person aggrieved.

(b) The name and address of the person against whom the complaint is filed (in this part called "respondent").

(c) A description and the address of the dwelling, if any, which is the subject.

Each complaint shall be in writing and signed, and shall be sworn to before a notary public, or verified in such a manner as the Secretary may require. The Secretary may also require complaints to be made on prescribed forms. Complaint forms shall be available to all persons in any regional or field office of the Department, including any field office of the Federal Housing Administration. Appropriate assistance in filling out forms and in filing a complaint will be rendered by personnel in any of such ofices. Complaints may be reasonably and airly amended at any time.

§ 71.16 Date of filing of complaint.

(a) For purposes of section 810 (d) of title VIII, a complaint shall be considered to be filed when it is received in such form as is found reasonably to meet the standards of §§ 71.14 and 71.15. The person aggrieved shall be notified of the date of filing and, other than in cases of referral to a State or local agency, of his right to bring court action under Section 810 after the expiration of 30 days from the date of filing. In the case of a complaint referred to a State or local agency and subsequently reactivated by the Secretary pursuant to $71.20, the person aggrieved shall be notified of the date of reactivation and of his right to bring court action under section 810 upon the expiration of 30 days from such date. Respondent shall also be notified of such reactivation.

(b) Notwithstanding paragraph (a) of this section, a complaint may be deemed filed, for purposes of the 180-day period of section 810(b) of title VIII, upon the receipt of written information sufficiently precise to identify the parties and describe generally the action or practices complained of. Such a complaint may be amended, as provided in § 71.15, to cure technical defects or omissions, including failure to verify the complaint, or to clarify and amplify allegations made therein, and such amendments shall be deemed to be made as of the original filing date.

Upon the filing of a complaint within the meaning of § 71.16(a), and upon any amendment of such a complaint, a copy thereof shall be furnished the respondent by certified mail or through personal service. The respondent may file an answer to the complaint at any time prior to the expiration of 20 days after the date the complaint is received. The answershall be sworn to before a notary public or verified in such a manner as the Secretary may require. With leave of the Secretary, an answer may be amended at any time. The Secretary will permit answers to be amended whenever he believes it would be reasonable and fair to do so.

§ 71.18

Notice to State or local fair housing agencies.

Whenever the Secretary determines that a State or local fair housing law provides rights and remedies substantially equivalent to those provided by title VIII for a person aggrieved by a discriminatory housing practice alleged in a complaint filed with the Secretary hereunder, the Secretary shall notify the appropriate State or local agency of such complaint. The Secretary shall give the complainant and the respondent notice in writing of such referral.

§ 71.19 Suspension of proceedings.

If, within 30 days after receiving notice of such complaint, appropriate proceedings under State and local law have been commenced by the appropriate State or local law enforcement official, then proceedings under the regulations in this part for title VIII shall be suspended, and no further action shall be taken by the Secretary hereunder so long as the proceedings which have been commenced under State or local law are, in the judgment of the Secretary, being carried forward with reasonable promptness by the appropriate State or local law enforcement official. § 71.20

Secretary's certification.

Whenever proceedings hereunder have been suspended pursuant to § 71.19, the period of suspension may be terminated and the proceedings reactivated only upon certification by the Secretary that, in his judgement, under the circumstances of the particular case, the protection of the rights of the parties or the interests of justice require such action.

§ 71.21 Investigation by the Secretary and decision to resolve.

(a) Within 30 days after a complaint is filed or within 30 days after reactivation by the Secretary, in the case of a complaint referred to a State or local agency and subsequently reactivated pursuant to § 71.20, the Secretary shall investigate the complaint and give notice in writing to the person aggrieved and to the respondent if the Secretary intends to resolve it.

(b) Notwithstanding paragraph (a) of this section, where the allegations of a complaint on their face, or as amplified by the statements of the complainant, disclose that the complaint is not timely filed or otherwise fails to state a valid claim for relief under title VIII, the Secretary may dismiss the complaint without further action.

(c) If the Secretary decides not to resolve a complaint, or to dismiss it under paragraph (b) of this section, he shall advise the person aggrieved in writing of the disposition of the case. Respondent shall also be notified in any case where he has been served with a copy of the complaint.

(d) The Secretary may, in the processing of a case, utilize, with their consent, the services of State or local agencies charged with the administration of fair housing laws or of appropriate Federal agencies.

(e) Any party adversely affected by a determination under paragraph (a) or (b) of this section may, within 5 days of receipt of notice of a determination, request that the Secretary reconsider his action. Such request for reconsideration will be granted only on the basis of additional material evidence not previously available to the party requesting reconsideration or for other good cause shown. § 71.22 Subpoenas and investigative

powers.

The Secretary encourages voluntary cooperation in his investigations but will resort to the compulsory processes authorized by section 811 of title VIII when, in his judgment, such resort becomes appropriate in order reasonably to expedite handling of complaints. The provisions of section 811 shall apply, in such cases, to the issuance and use of subpoenas by the Secretary on his own behalf or on behalf of a respondent. Payment of witness and mileage fees shall be made as provided for in section

811(c) in an amount allowed under the rules governing such payment by the United States district courts. Fees payable to a witness summoned by subpoena issued at the request of a respondent shall be paid by respondent.

Subpart C-Procedures To Rectify Discriminatory Housing Practices

§ 71.31 Conference, conciliation, and

persuasion.

If the Secretary has decided to resolve a complaint, he shall endeavor to eliminate or correct the discriminatory housing practice alleged therein by informal methods of conference, conciliation, and persuasion. These endeavors may proceed simultaneously with the conduct of such investigation as the Secretary may deem necessary or after the investigation has been concluded, and they need not be terminated even if the person aggrieved has commenced a civil action in an appropriate court under title VIII, but all efforts to obtain voluntary compliance shall immediately terminate when such civil action comes to trial, unless the court specifically requests assistance from the Secretary. § 71.32

Settlements.

In conciliating or taking other action pursuant to § 71.31, the Secretary shall attempt to achieve a just resolution of the complaint and to obtain assurances, where appropriate, that the respondent will satisfactorily remedy any violations of the rights of the person aggrieved and will take such action as will assure the elimination of discriminatory housing practices or the prevention of their occurrence in the future. Written notice of disposition of a case pursuant to § 71.31 and of the terms of settlement, if any, shall be given to the parties by the Secretary. The Secretary may, from time to time, review compliance with the terms of any settlement agreement and may, upon a finding of noncompliance, reopen the case or take such enforcement action as is provided for under the settlement agreement or as may otherwise be appropriate.

§ 71.33 Inability to obtain voluntary compliance.

Should a respondent fail or refuse to confer with the Secretary or his representative, or fail or refuse to make a good faith effort to resolve any dispute,