Office of the Assistant Secretary for Public and Indian Housing; Notice of Funding Availability for the Fair Housing Services Center in East Texas

SUMMARY: This NOFA announces the availability of funds and HUD's

request for proposals to establish a Fair Housing Services Center in

East Texas to be administered by a non-profit organization (NPO). HUD

will award to, and enter into a grant agreement with, an NPO to

administer the FHSC as required by the Final Judgment and Decree (Final

Judgment) in Lucille Young v. Cisneros, CA No. P-80-8-CA, (E.D. Tex.;

dated March 30, 1995). HUD has been ordered to provide $500,000 per

year for a period of at least five years to fund the FHSC to be located

in Beaumont, Texas, with branch offices within the 36 county area that

constitutes East Texas, and one mobile office unit to provide services

to remote locations throughout East Texas. Appendix A to this Notice is

a copy of the Request for Proposals (RFP) and Program Guidelines as

approved by the Court. All information relating to the RFP is included

in the RFP.

DATES: The proposal deadline for the Fair Housing Services Center NOFA

is October 25, 1996, 3:00 p.m., Washington, DC time.

The above-stated proposal deadline is firm as to date and hour. In

the interest of fairness to all competing NPOs, HUD will treat as

ineligible for consideration any proposal that is not received before

the proposal deadline. Applicants should take this practice into

account and make early submission of their materials to avoid any risk

of loss of eligibility brought about by unanticipated delays or other

delivery-related problems. HUD will not accept, at any time during the

NOFA competition, proposal materials sent via facsimile (FAX)

transmission.

ADDRESSES: The original and nine complete copies of the proposal should

be submitted by the deadline to Mr. Gerald J. Benoit, Director,

Operations Division, Office of Rental Assistance, Department of Housing

and Urban Development, Room 4220, 451 Seventh Street, SW, Washington,

DC 20410.

FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations

Division, Office of Rental Assistance, Department of Housing and Urban

Development, Room 4220, 451 Seventh Street, SW, Washington, DC 20410-

8000, telephone number (202) 708-0477 (this is not a toll-free number).

For hearing- and speech-impaired persons, this number may be accessed

via TTY (text telephone) by calling the Federal Information Relay

Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Request for Proposals

All information related to the RFP is available in Appendix A to

this Notice. Appendix A has been approved by the Court under the terms

of the Final Judgment and Decree as identified above and therefore is

the only document potential bidders should use to determine the

requirements of the RFP.

Background

The plaintiffs, African-American residents of public housing in

East Texas, filed suit in 1980 alleging that HUD had knowingly

maintained a system of segregated housing in a 36-county area of East

Texas, in violation of the U.S. Constitution and various civil rights

laws. The plaintiffs contended that there was segregation in HUD-

supported low income public housing, Section 8 Existing Housing and

other HUD-assisted multifamily housing programs.

In 1982, the U.S. District Court for the Eastern District of Texas

certified a class consisting of all African-American applicants for and

residents of HUD-funded public housing, Section 8 housing and other

assisted housing programs in the 36-county area. In 1985, the court

issued a liability decision finding that HUD had knowingly and

continually maintained a system of segregated housing in the 36-county

area.

In 1987, while an appeal was pending, HUD and the plaintiffs

reached an agreement to limit the scope of the case and the class of

plaintiffs. In 1988, the court appointed a special master and issued an

interim injunction which compelled HUD to require each of the 70

housing agencies to implement race-conscious Tenant Selection and

Assignment Plans and to provide all class members a series of notices

of desegregative opportunities in all HUD-assisted housing in East

Texas. On March 30, 1995, U.S. District Judge William Wayne Justice

issued the Final Judgment that approved the desegregation plans and the

plan amendments and required HUD to fund the FHSC.

The following is an outline of the activities of the FHSC (bidders

should refer to the attached RFP for details of the activities and

responsibilities of the FHSC):

1. Familiarity with all relevant HUD regulations;

2. Outreach to landlords and assistance with exception rents;

3. Prescreening services;

4. Counseling services and other social services support;

5. Responsibilities to Class members who receive a desegregative

voucher/certificate;

6. FHSC encouragement and assistance to class members to make

desegregative moves;

7. Information provided to Class members;

8. Quarterly and Annual Performance Reports; and

9. Respond to Information Requests from HUD.

Bidders must respond to the requirements of the RFP attached to

this NOFA and HUD encourages bidders to refer to the RFP for all

appropriate information concerning the Fair Housing Services Center.

Other Matters

Environmental Impact

In accordance with 40 CFR 1508.4 of the regulations of the Council

on Environmental Quality and 24 CFR 50.20(o)(1) of the HUD regulations,

the policies and procedures contained in this notice relate only to the

provision of information services whose content does not constitute a

development decision nor affect the physical condition of project areas

or building sites, and therefore, are categorically excluded from the

requirements of the National Environmental Policy Act.

Federalism Impact

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this notice will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal Government and the States, or on the distribution of power and

responsibilities among the various levels of government. As a result,

the notice is not subject to review under the Order. This notice is a

funding notice and does not substantially alter the established roles

of the Department, the States, and local governments, including Public

Housing Agencies.

[[Page 50377]]

Impact on the Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this notice does not have

potential for significant impact on family formation, maintenance, and

general well-being within the meaning of the Executive Order and, thus,

is not subject to review under the Order. This is a funding notice and

does not alter program requirements concerning family eligibility.

Section 102 of the HUD Reform Act: Documentation and Public Access

Requirements

HUD will ensure that documentation and other information regarding

each proposal submitted pursuant to this NOFA are sufficient to

indicate the basis upon which assistance was provided or denied. This

material, including any letters of support, will be made available for

public inspection for a five-year period beginning not less than 30

calendar days after the award of the assistance. Material will be made

available in accordance with the Freedom of Information Act (5 U.S.C.

552) and HUD's implementing regulations at 24 CFR part 15. In addition,

HUD will include the recipients of assistance pursuant to this NOFA in

its Federal Register notice of all recipients of HUD assistance awarded

on a competitive basis.

Section 103 of the HUD Reform Act

Section 103 of the Department of Housing and Urban Development

Reform Act of 1989 (42 U.S.C. 3537a) (Reform Act) and HUD's

implementing regulation codified as 24 CFR part 4, subpart B, applies

to the funding competition announced today. These requirements continue

to apply until the announcement of the selection of successful

applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are restrained by these requirements from

providing advance information to any person (other than an authorized

employee of HUD) concerning funding decisions, or from otherwise giving

any applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted under these requirements.

Applicants or employees who have ethics-related questions should

contact the HUD Office of Ethics (202) 708-3815 (TTY/Voice) (this is

not a toll-free number). Any HUD employee who has specific program

questions, such as whether particular subject matter can be discussed

with persons outside the Department, should contact the appropriate

Field Office Counsel or Headquarters counsel for the program to which

the question pertains.

Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) (the ``Byrd Amendment'') and the

implementing regulations at 24 CFR part 87. These authorities prohibit

recipients of Federal contracts, grants, or loans from using

appropriated funds for lobbying the Executive or Legislative Branches

of the Federal Government in connection with specific contract, grant,

or loan. The prohibition also covers the awarding of contracts, grants,

cooperative agreements, or loans unless the recipient has made an

acceptable certification regarding lobbying. Under 24 CFR part 87,

applicants, recipients, and subrecipients of assistance exceeding

$100,000 must certify that no Federal funds have been or will be spent

on lobbying activities in connection with the assistance. IHAs

established by an Indian tribe as a result of the exercise of the

tribe's sovereign power are excluded from coverage of the Byrd

Amendment, but IHAs established under State law are not excluded from

the statute's coverage.

Dated: September 18, 1996.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing.

Appendix A--Request for Proposals (RFP) and Program Guidelines for

Establishing a Fair Housing Services Center (FHSC) in East Texas

This is a request for proposals to establish a FHSC in East Texas

to be administered by a nonprofit organization (``NPO'') as required by

the Final Judgment and Decree in (``Final Judgment'') Lucille Young v.

Cisneros, CA No. P-80-8-CA, (E.D. Tex.; dated March 30, 1995). HUD has

been ordered to provide $500,000 per year for a period of at least five

years to fund a FHSC for East Texas to be located in Beaumont, Texas,

with several branch offices within the 36-county area that constitutes

East Texas, and one mobile office unit to provide services to remote

locations throughout East Texas. The funding will provide for a variety

of services designed to facilitate desegregative moves of class member

applicants for and residents of public housing throughout the seventy

(70) Public Housing Authorities (``PHAs'') located in the 36-county

jurisdiction of the Young Final Judgment. The specific responsibilities

of the FHSC are enumerated in the Scope of Work below, in the Final

Judgment (copy attached), and the original desegregation plans and the

plan amendments approved by the Court. The Final Judgment is the

document that controls the activities of the FHSC. The FHSC is bound by

the terms of the Final Judgment and final desegregation plans (as

determined by the Court).

The U.S. Department of Housing and Urban Development (``HUD'') will

award to and enter into a contract with an NPO. HUD's Beaumont Staff

Office will monitor performance. The term of the contract shall be for

one year, renewable in one year increments for at least five years. The

renewal of the contract is contingent upon the FHSC's ability in

meeting the conditions set forth in Section B, ``Scope of Work'' below,

and in complying with the Final Judgment. HUD shall provide $500,000

for the activities of the FHSC for each year of operation, and a total

of 1,000 Section 8 rental assistance vouchers and/or certificates

(excluding incremental and turnovers) to be used toward HUD's

obligation to provide 5,134 desegregative housing opportunities to

Young class members.

The housing opportunity counseling funds will be provided to the

FHSC through HUD's contract administrator. HUD will award the 1,000

desegregation vouchers/certificates to PHAs that have jurisdiction in

the areas where the Young class members move. The PHAs that are awarded

these vouchers/certificates are herein called ``receiving PHA(s)''.

DATES: Deadline for proposals: Proposals must be received by 3 P.M.,

Washington DC time, on October 25, 1996. Proposals received after this

deadline will not be eligible for consideration. Faxed documents will

not be accepted, nor will documents be accepted that are postmarked

after October 25, 1996. It is the responsibility of all applicants to

ensure that their proposal is received by the above deadline.

ADDRESSES: The original and nine complete copies of the proposal should

be submitted by the deadline to Mr. Gerald J. Benoit, Director,

Operations Division, Office of Rental Assistance, Department of Housing

and Urban Development, Room 4220, 451 Seventh Street, SW., Washington,

DC 20410.

[[Page 50378]]

CONTACTS FOR FURTHER INFORMATION: For general information, interested

nonprofit organizations should contact--Gerald J. Benoit, Director,

Operations Division, Office of Rental Assistance, Department of Housing

and Urban Development, Room 4220, 451 Seventh Street, SW., Washington,

DC 20410-8000, telephone number (202) 708-0477 (this is not a toll-free

number). For hearing- and speech-impaired persons, this number may be

accessed via TTY (text telephone) by calling the Federal Information

Relay Service at 1-800-877-8339.

The following sections of this RFP are:

I. Scope of Work

A. Background and Objectives

B. Activities of the FHSC

C. Administrative Requirements

D. Monitoring

II. Contents of Proposal

A. Eligible Applicant

B. Description of Activities and Costs

C. Deficient Applications for FHSC

III. Factors for Award

A. Evaluating Rating Factors

B. Certification

C. Cost Factor

D. Contract Award

I. Scope of Work

A. Background and Objectives

The plaintiffs in Young, African-American residents of public

housing in East Texas, filed this action in 1980, alleging that HUD had

knowingly maintained a system of segregated housing in a 36-county area

of East Texas, in violation of the U.S. Constitution and various civil

rights laws. The plaintiffs contended that there was segregation in

HUD-supported low income Public Housing, Section 8 Existing Housing

Program, and other HUD-assisted multifamily programs (including HUD-

insured housing). While there are presently 70 individual public

housing authorities (``PHAs'') in the 36-county area, none of the PHAs

are included in the lawsuit as parties.

In 1982, the U.S. District Court for the Eastern District of Texas

(``Court'') certified a class consisting of all African-American

applicants for and residents of HUD-funded public housing, Section 8

housing and other assisted housing programs in the 36-county area.

In 1985, the court issued a liability decision, finding that HUD

had knowingly and continually maintained a system of segregated housing

in the 36-county area. In 1987, while an appeal was pending, HUD and

the plaintiffs reached an agreement to limit the scope of the case and

class of plaintiffs to public housing in the 36-county area. The Young

class thus consists of all African-American residents of, or applicants

for, public housing in the 36-county area.

In 1988, the court appointed a special master and issued an interim

injunction, which, among other things, compelled HUD to require each of

the 70 PHAs to implement race-conscious Tenant Selection and Assignment

Plans and to provide all class members a series of notices of

desegregative opportunities in all HUD-assisted housing in East Texas.

After settlement discussions between HUD and the plaintiffs proved

unsuccessful in 1990, the court issued an Order for Further Relief,

dated September 9, 1990, which required, among other things, that HUD

develop desegregation plans or assertions of unitary status for each of

the 70 PHAs. The court ordered HUD, in developing each plan, to provide

for the equalization of conditions between predominantly African-

American projects and the conditions in the projects and neighborhoods

where the majority of white HUD-assisted housing recipients resided.

By June 1991, HUD had submitted desegregation plans or unitary

status assertions for all 70 PHAs to the court for approval. Although

the court did not rule as to the adequacy of the plans and unitary

status assertions at that point, HUD began to implement the

desegregation plans. In October 1993, after further analysis, HUD

withdrew its submission of the plans and assertions after having

determined that they did not fully or adequately address the

requirements of the September 1990 Order.

HUD filed revised plans on February 8, 1994, along with the East

Texas Comprehensive Desegregation Plan (Comprehensive Plan). The

Comprehensive Plan reinstituted the original plans filed in 1990-91,

but amended them to provide for further actions, and replaced all

unitary status assertions with new desegregation plans (asserting that

none of the 70 PHAs had, as of yet, attained unitary status).

The Comprehensive Plan filed in February 1994 called for the

creation of 1,000 desegregative housing opportunities for class members

over a five-year period. In May 1994, after further analysis, HUD

agreed to provide for the creation of 5,134 desegregative opportunities

within seven years. On March 30, 1995, U.S. District Judge William

Wayne Justice issued the Final Judgment, that approved the original

desegregation plans and the plan amendments and required HUD to fund

the FHSC.

B. Activities of the FHSC

1. The FHSC must become familiar with all relevant HUD regulations

(e.g., those governing Section 8 assistance, public housing, assisted

housing, and Fair Housing), the Final Judgment and applicable

individual desegregation plans. The FHSC shall order and/or approve all

issuances by the receiving PHA of Section 8 vouchers or certificates to

class members or others pursuant to the Final Judgment Decree, Sec. II.

2. Outreach to landlords and assistance with exception rents. The

FHSC shall encourage and assist in the development of desegregative

housing opportunities, including outreach to private landlords in non-

minority areas for the purpose of encouraging them to participate in

the Section 8 existing program, as well as counseling and referral

services to Section 8 existing housing tenants and applicants who wish

to utilize their Section 8 certificates or housing vouchers in a manner

furthering desegregation pursuant to para. IV.5.d. of the Final

Judgment.

The FHSC, along with the PHAs, shall monitor rents in desegregative

housing opportunity areas every six months to determine whether such

rents are adversely affecting housing opportunities. If so, the FHSC

shall take such steps as are necessary to overcome this adverse affect,

including by requesting that HUD consider granting exception rents for

certificates or payment standards for vouchers, pursuant to the Court's

1990 Order for Further Relief, if such exception rents or payment

standards would increase the availability of desegregative housing

opportunities for class members.

3. Prescreening services. The FHSC shall prescreen all clients of

the FHSC who have not already been screened by the receiving PHA, to

document each client's ability and willingness to comply with an

acceptable lease and HUD program requirements pursuant to para. IV.5.a.

of the Final Judgment.

4. Counseling services and other social services support. Pursuant

to para. IV.5.b. of the Final Judgment, the FHSC shall provide

counseling services designed to provide information and counseling with

respect to class members including the following: inform applicants of

desegregative housing opportunities; provide offers and/or referral to

such housing opportunities; assist applicants in taking advantage of

those opportunities; and help them overcome obstacles inherent in

desegregative moves. In addition, the FHSC will: provide escort

assistance to

[[Page 50379]]

available units; provide post-move support services; provide

information about educational and economic opportunities; arrange home

visits; and communicate information about the positive features of

neighborhoods where there is housing that represents desegregative

housing opportunities as defined in the Final Judgment.

5. Class members who receive a desegregative voucher/certificate.

Under the Final Judgment and Decree, HUD will provide to class members

5,134 desegregative housing opportunities, over a seven-year period.

The actual placement of a total of 40 class members in Alba (1),

Corrigan (2), Fruitvale (2), Kirbyville (8), Mount Pleasant (22), Talco

(2), and Trinidad (3) is also required under the Final Judgment. Two

hundred desegregative vouchers/certificates will be provided in the

first year of the FHSC's operation, and 200 per year thereafter for the

following five years. The class members who receive one of the

desegregative vouchers/certificates will be required to use their

vouchers/certificates in rental housing that constitutes a

desegregative opportunity as defined in the Final Judgment. The FHSC

will provide to the class members who receive a desegregative voucher/

certificate counseling services and other forms of assistance, as

necessary, to aid them in locating desegregative housing.

Pursuant to para. IV.5.g. of the Final Judgment and Decree, FHSC

will give each class member written notice, every six months, in a form

and distribution method to be approved by HUD, of all HUD-assisted and/

or HUD-subsidized low-income housing developments in the housing

markets where the class member resides that offer the class members a

desegregative housing opportunity, provide notice of the full address,

telephone number, and name of the person responsible for accepting

applications for the development, a short description of the type of

housing offered by the development, and the general eligibility

requirements or the development. The FHSC will include in the Notice to

class members, information about the mobility program, and the

opportunities available through it.

a. PHA Responsibilities. The receiving PHAs will be awarded 1,000

desegregation certificates and vouchers to be used toward HUD's

obligation to provide 5,134 desegregative housing opportunities to

Young class members; conduct the intake and initial eligibility

determination of applicants; and conduct any required Housing Quality

Standards (``HQS'') inspections of units. The 1,000 desegregative

vouchers/certificates are for the exclusive use of class members.

Certificates or vouchers obtained by receiving PHAs from other East

Texas Sec. 8 programs through turnover, recapture, or otherwise, may be

provided to non-class members when required by HUD under subparagraph c

below.

b. Award and Turn-in of Desegregative certificates. Class members

who initially receive a desegregative voucher/certificate will have 120

days within which to enter into a lease for a unit of desegregative

housing as defined, or, if the FHSC has failed to offer a unit within

that time, until a desegregative offer is in fact received. At the

expiration of 120 days, if an offer and if a lease has not been

entered, the applicant has the option of continuing to search for

housing with no restrictions as to locations for an additional sixty

days. However, should the class member locate in a minority

neighborhood, this will not count toward HUD'S obligation to create

5,134 desegregative housing opportunities. At the end of the sixty-day

period, the certificate would revert to the receiving PHA unless it

grants an extension.

c. Special procedures for Affirmative Action Waiting List

Initiatives. HUD shall provide to the FHSC the name and address of

every class member applicant who is to be offered a certificate and

counseling as an alternative to public housing when a PHA uses an

affirmative action waiting list procedure that has been approved by the

Court to offer the unit that would otherwise have been offered to the

class member, to a white applicant whose name is listed lower on the

waiting list. Paragraph III of the Final Judgment is to be followed

when implementing the Affirmative Action Waiting List initiatives. When

a class member is offered a certificate or voucher under these

circumstances:

(1) The class member is to be made an offer of alternative housing

within 60 days of the date on which the public housing unit that is to

be offered to a white applicant available for assignment.

(2) The class member must be provided the Sec. 8 voucher or

certificate and an offer of a unit must be made within 120 days from

issuance of the certificate to the class member that meets the

requirements of VII.7 of the Final Judgment and must notify HUD within

one day if the applicant accepts the offer;

(3) If the class member rejects the offer of alternative housing,

the FHSC must notify HUD within one day of the rejection, state the

reason(s) for the rejection, and provide information as to the location

of the rejected unit and evidence of its availability.

(4) If, after 120 days, an alternative housing opportunity has not

been found for the class member, the class member may opt to hold the

certificate for up to sixty additional days and to search for housing

on her or his own without restriction as to location.

HUD will provide the FHSC with the name and address of every non-

class member who is to receive a Sec. 8 voucher/certificate as a result

of the implementation of the Affirmative Action Waiting List. The FHSC

must instruct the receiving PHA to issue a Sec. 8 existing housing

voucher/certificate to the non-class member applicant who held the

highest position on the waiting list and who would otherwise have been

offered an available public housing unit but for the advancement of a

class member to the head of the waiting list for that unit under the

Affirmative Action Waiting List.

d. Priority of Offers. The FHSC will offer the desegregative

certificates to class members according to the following priority: (1)

To class members residing in predominantly African American low-rent

public housing projects; (2) to class members who are on a waiting list

for low-rent public housing as of March 30, 1995; (3) to class members

who apply for low-rent public housing subsequent to the date of March

30, 1995.

6. The FHSC shall encourage and assist class members to make

desegregative moves within the low income housing program and to

privately owned assisted housing programs pursuant to para. IV.5.e. of

the Final Judgment. The FHSC shall develop and implement a plan to

refer class members, with or without the use of Sec. 8 certificates or

vouchers, to privately owned, HUD-assisted, or FmHA housing located in

areas which provide a desegregative housing opportunity. FHSC shall

conduct outreach to the landlords and/or owners of all such HUD-

assisted, or FmHA private housing providers located in areas which

provide a desegregative opportunity and other Sec. 8 existing agencies,

to encourage participation in the FHSC-developed referral plan. FHSC

shall monitor the performance of other Sec. 8 existing agencies in the

36-county area in this regard, and shall also develop a system to

record all offers of an/or placements of class members in desegregative

housing by other Sec. 8 agencies in East Texas.

7. Information. The FHSC shall designate specific personnel to

respond to requests for information and requests for assistance from

class members

[[Page 50380]]

desiring to obtain a desegregative housing opportunity as defined in

the Final Judgment. The assistance to be provided shall include

referrals of interested class members to public housing developments,

and to programs other than low income public housing, that offer

desegregative housing opportunities in East Texas.

8. Quarterly Status and Annual Performance Report. The FHSC shall

provide quarterly status reports on significant activities taken under

the requirements of the Final Judgment and Decree. HUD will file each

report with the court and serve it on plaintiffs' counsel within thirty

days of the end of the quarter covered in the report.

The FHSC shall submit an annual report on their performance of

their obligations under the Final Judgment and Decree to the

plaintiffs, with a copy to go to the court by April 30th of each year.

9. HUD's Right to Request Information. The FHSC will collect and

maintain the data necessary to monitor the program toward providing

desegregative opportunities. This would include: (a) The number of

class members seeking desegregated housing opportunities; (b) the

number of class members actually leasing units in non-impacted

neighborhoods; (c) the number and name of housing providers recruited

into the program; and (d) the number of class members assisted and

number of hours staff members devoted to assisting families, and

similar data as HUD may require. The FHSC will comply with any

informational requests from HUD that HUD, in its discretion, makes from

time to time during the course of the program.

C. Administrative Requirements

The FHSC shall be required to adhere to the following three

administrative requirements in performing work under this award:

1. Submission of quarterly progress reports detailing progress made

in fulfilling the tasks and sub-tasks in the approved Project

Management Plan;

2. Distribution of an Evaluation Questionnaire to all persons,

organizations, agencies, or other entitles receiving services,

participating, or otherwise involved in this project and submission of

a ``Customer Satisfaction Report'' semi-annually;

3. Preparation of a final report in a format suitable for

information transfer, exchange and dissemination to other PHA's

communities, or other entities interested in providing such services.

The final report should detail the case study of East Texas

Desegregation Counseling Project and provide insights and

recommendations for others who may wish to develop similar programs.

D. Monitoring

The FHSC shall monitor the compliance of the providers of low-

income housing in the class action area (low-income public housing and

assisted housing) with the fair housing laws and the requirements

placed upon the providers under the comprehensive plan and the

individual desegregation plans pursuant to para. IV.5.c. of the Final

Judgment.

II. Contents of Proposal

A. Eligible Applicant

The proposal must be submitted by an NPO and must include all

information requested in this section. Any proposal submitted after the

due date or that does not contain the required information may be

rejected. The NPO must submit documentation as a part of the proposal

that verifies the ``501(c)3'' and/or ``501(c)4'' (IRS Code) status, of

the NPO and its legal authority to operate throughout East Texas area.

Corporate documents. The NPO shall provide a copy of its Articles

of Incorporation.

B. Description of Activities and Costs

It is to an NPO's advantage if it describes its experiences, if

any, as requested in this section. In the case of a newly formed NPO,

the NPO may substitute a description of experience and knowledge of its

principal officers and employees where a description of its own

experience is requested below.

1. Description of experience. The NPO must submit a narrative

description of its experience in assisting lower-income families and/or

African-Americans or other minorities in the search for housing. The

NPO should describe its working knowledge of HUD's Section 8 programs,

as well as its Public Housing and Assisted Housing programs. The NPO

should include a list of its projects over the last two years that are

relevant to this procurement action. HUD reserves the right to request

information from any source so named.

2. Knowledge of fair housing and mobility experience. The NPO must

submit a narrative description of its knowledge of, and experience in

assisting African-Americans with fair housing as well as monitoring

providers for violations of the fair housing laws. The narrative should

specifically address the NPO's knowledge of the rental market in

racially non-impacted areas and the barriers that limit access to that

housing by lower-income minority persons. The NPO shall also describe

its experience with mobility activities.

3. Description of organizational capacity. The NPO must submit a

narrative description of its capability and capacity to handle a

project of this scope. The narrative is to include a list of current

federally funded activities. The NPO should provide an organizational

chart of key personnel to be involved in each activity under the

agreement, and the percentage of time that they will devote to each

activity. The NPO should include resumes, references, or other

documents that show that key personnel have experience in the tasks

described in the ``Scope of Work'', the Final Judgment and Decree, and

applicable individual desegregation plans. If the NPO plans to utilize

subcontractors, consultants or other agents, it should provide the same

information with respect to them.

4. Management plan. A summary of a management plan as described

below, particularly as the Plan pertains to the evaluation factors set

out in Section III. A. of this RFP, shall be submitted as part of each

organization's proposal. A detailed narrative of a management plan to

carry out the programs as outlined in the Final Judgment and Decree and

this RFP. This plan will be delivered to the HUD Beaumont Staff Office

within 15 days after the agreement is awarded. The Plan will include a

description of: (1) Each task and sub-task; (2) the methodology to be

used in accomplishing each task and sub-task; (3) internal financial

management and oversight procedures and policies; (4) when each task,

sub-task and establishment of financial oversight procedures will be

accomplished; (5) staff and organization (including an organizational

flow-chart), including the staff-loading for each task and sub-task;

(6) projected costs for each task and sub-task by calendar quarter; (7)

the support that is expected to be required from HUD and its contract

administrator; and (8) projected site and cost of office space and

mobile unit, if applicable. The final management plan will then be

submitted by HUD to the Court for approval.

C. Deficient Applications for FHSC

A proposal will be deemed technically ineligible if:

1. It does not fully adhere to the guidelines established herein,

including budgetary requirements;

2. The complete proposal is not received by the deadline;

3. A comprehensive line item budget is not included;

[[Page 50381]]

4. The project budget for costs charged against funds exceeds

$500,000; or

5. Unsigned proposal or certification forms are submitted.

III. Factors for Award

A. Evaluating Rating Factors

HUD will use the following criteria to evaluate proposals received

in response to this RFP. In all cases, the number of points stated

represents the maximum. In the actual scoring, any given application

may receive less than the maximum for each category, based on an

evaluation of competing applications.

1. Familiarity with housing mobility counseling and HUD housing

programs (30 points).

a. Demonstrated work experience with fair housing mobility

counseling of lower income and minority families. (10)

b. Demonstrated work experience with HUD's Section 8 Public Housing

or privately owned assisted housing programs. (10)

c. Demonstrated work experience in coordinating resources and

activities provided by a variety of government, private sector

agencies, and organizations for providing housing and/or fair housing

law enforcement support. (10)

2. Knowledge of fair housing and mobility experience (25).

a. Demonstrated record of participation in fair housing activities,

particularly with respect to low income families and racial or ethnic

minorities and monitoring providers of low-income housing for

violations of the fair housing laws. (10)

b. Demonstrated knowledge of and experience in mobility services

for African-American tenants. (10)

c. Experience in rental markets in the racially non-impacted areas.

(5)

3. Organizational capacity (20 points).

a. Demonstrated capability and capacity of the non-profit

organization to effectively manage a grant of this scope. (10)

b. Demonstrated capability of the non-profit's key personnel,

including officers, employees, partners, subcontractors, consultants

and other agents to accomplish the work responsibilities of the FHSC.

(10)

4. Quality of Proposal (25 points).

a. Extent to which the proposal demonstrates an understanding of

the Final Judgment and Decree, the applicable individual desegregation

plans, and this RFP, and proposes a realistic approach to all the work

requirements that most nearly meet the conditions of the Final Judgment

and Decree. (15)

b. Degree of clarity and acceptability of the overall proposal and

specific methods, procedures and steps as outlined in the Management

Plan. (10)

B. Certification

Each application must contain an original and nine copies of the

certifications identified below. Each certification must be signed by

the Chief Executive Officer of the applicant organization unless

otherwise noted.

1. Drug-free Workplace Certification. The non-profit must certify

that it will provide a drug-free workplace and comply with the drug-

free workplace requirements at 24 CFR Part 24, Subpart F. See attached

certification for drug-free workplace.

2. Certification regarding Lobbying pursuant to Section 319 of the

Department of the Interior Appropriation Act of 1989, generally

prohibiting use of appropriated funds for lobbying.

3. Certification of no outstanding violations of: Title VI of the

Civil Rights Act of 1964 (42 U.S.C. 2000d) and regulations pursuant

thereto (24 CFR part 1); the Fair Housing Act (42 U.S.C. 3601-19);

Executive Order 11063, as amended by Executive Order 12892 and HUD

regulations (24 CFR part 107); Section 504 of the Rehabilitation Act of

1973 (29 U.S.C. 794) and regulations issued pursuant thereto (24 CFR

part 8); Title II of the Americans with Disabilities Act of 1990 (and

applicable regulations at 28 CFR Part 36); the Age Discrimination Act

of 1975 (42 U.S.C. 6101-07) and regulations issued pursuant thereto (24

CFR part 146); Executive Order 11246 and all regulations issued

pursuant thereto (41 CFR Chapter 60-1); Section 3 of the Housing and

Urban Development Act of 1968 (12 U.S.C. 1701U) and regulations

pursuant thereto (24 CFR part 135).

4. Conflicts of Interest. The nonprofit shall provide a statement

which describes all relevant facts concerning any past, present or

currently planned interest (financial, contractual, organizational, or

otherwise) relating to the work to be performed which could present a

possible conflict of interest with respect to: (a) being able to render

impartial, technically sound, and objective assistance or advice; or

(b) being given an unfair competitive advantage. The nonprofit shall

describe its current and past relationship with HUD as it relates to a

possible conflict of interest in carrying out the counseling program.

Such conflict could arise when any employee, officer or agent of

the PHA, HUD or plaintiffs' counsel; any member of his or her immediate

family, his or her partner, or organization which employs or is about

to employ any of the above has a financial or other interest in the NPO

that is selected.

C. Cost Factor

Cost will become relevant in the case of a tie score in the

technical part of the evaluation, as stated under ``Contract Award''

below. It is the goal of the Final Judgment to provide high quality

services that will contribute substantially to the desegregation of all

federally assisted housing in East Texas. It is expected that the costs

of each task and sub-task will be addressed in the proposal, including

the costs for sub-contractors, etc. HUD reserves the right to reject

any proposal that does not adequately analyze costs.

D. Contract Award

Negotiations will be conducted with those NPOs whose proposals fall

within a competitive range from a technical perspective. Award will be

made to the most responsive NPO whose proposal is considered to be the

most advantageous. In the event two or more offerors are considered

technically equivalent, cost efficiency--i.e., the extent to which the

non-profit that has a plan that will accomplish the most desegregative

placements of all kinds within the established financial parameters--

will be considered of primary importance.

E. Approval by HUD and Court Review

Notwithstanding the foregoing, a contract shall not be entered into

for the FHSC without the express written approval by HUD of the entity

and proposal selected, and of the contract with such entity. The

initial and any subsequent HUD decisions to select an entity to

contract with the NPO and the initial and any subsequent HUD approvals

of the entity and proposal selected and of the contract with the NPO

are subject to judicial review by motion of the plaintiffs under para.

IV.6. of the Final Judgment and Decree.

Certification Regarding Drug-Free Workplace Requirements (From 24 CFR

24, Appendix C)

Instructions for Certification

1. By signing and/or submitting this application or grant

agreement, the grantee is providing the certification set out below.

2. The certification set out below is a material representation of

fact upon which reliance was placed when the agency determined to award

the grant. If it is later determined that the grantee knowingly

rendered a false certification,

[[Page 50382]]

or otherwise violates the requirements of the Drug-Free Workplace Act,

the agency, in addition to any other remedies available to the Federal

Government, may take action authorized under the Drug-Free Workplace

Act.

3. For grantees other than individuals, Alternate I applies.

4. For grantees who are individuals, Alternate II applies.

Certification Regarding Drug-Free Workplace Requirements

Alternate I

A. The grantee certifies that it will provide a drug-free workplace

by:

(a) Publishing a statement notifying employees that the unlawful

manufacture, distribution, dispensing, possession or use of a

controlled substance is prohibited in the grantee's workplace and

specifying the actions that will be taken against employees for

violation of such prohibition;

(b) Establishing a drug-free awareness program to inform employees

about--

(1) The dangers of drug abuse in the workplace;

(2) The grantee's policy of maintaining a drug-free workplace;

(3) Any available drug counseling, rehabilitation, and employee

assistance programs; and

(4) The penalties that may be imposed upon employees for drug abuse

violations occurring in the workplace;

(c) Making it a requirement that each employee to be engaged in the

performance of the grant be given a copy of the statement required by

paragraph (a);

(d) Notifying the employee in the statement required by paragraph

(a) that, as a condition of employment under the grant, the employee

will--

(1) Abide by the terms of the statement; and

(2) Notify the employer of any criminal drug statute conviction for

a violation occurring in the workplace no later than five days after

such conviction;

(e) Notifying the agency within ten days after receiving notice

under subparagraph (d)(2) from an employee or otherwise receiving

actual notice of such conviction;

(f) Taking one of the following actions, within 30 days of

receiving notice under subparagraph (d)(2), with respect to any

employee who is so convicted--

(1) Taking appropriate personnel action against such an employee,

up to and including termination; or

(2) Requiring such employee to participate satisfactorily in a drug

abuse assistance or rehabilitation program approved for such purposes

by a Federal, State, or local health, law enforcement, or other

appropriate agency;

(g) Making a good faith effort to continue to maintain a drug-free

workplace through implementation of paragraphs (a), (b), (c), (d), (e)

and (f).

B. The grantee shall insert in the space provided below the site(s)

for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

Alternate II

The grantee certifies that, as a condition of the grant, he or she

will not engage in the unlawful manufacture, distribution, dispensing,

possession or use of a controlled substance in conducting any activity

with the grant.

In the United States District Court for the Eastern District of Texas

Paris Division

Lucille Young, et al., Plaintiffs, v. Henry G. Cisneros, et al.,

Defendants. [P-80-8-CA, Final Judgment]

Final Judgment and Decree

In 1985, defendants in the above-entitled and numbered civil action

were found liable for knowingly and continually maintaining a system of

segregated housing in a thirty-six county area of East Texas in

violation of the constitutional and civil rights of a class of African-

Americans. Young v. Pierce, 628 F. Supp. 1037 (E.D. Tex. 1985). An

interim injunction issued in this action in 1988. Young v. Pierce, 685

F. Supp. 986 (E.D. Tex. 1985). Such interim injunction was amended by

order of this court in 1990. Order for Further Relief, September 10,

1990. After extensive briefing by the parties and a hearing on the

plaintiffs' motion for final remedy, it is

Ordered, Adjudged, and Decreed that the Honorable Henry G.

Cisneros, as Secretary of the Department of Housing and Urban

Development (``HUD''), his officers, agents, servants, employees,

successors, and all persons in active concert or participation with

them shall be, and are hereby, Permanently Enjoined, either directly,

or through contractual or other arrangements, to take the actions

necessary to effectuate the relief decreed by the provisions of this

Final Judgment and Decree, as follows:

1. The individual desegregation plans and the individual

desegregation plan amendments for each Public Housing Authority

(``PHA'') submitted by the Department of Housing and Urban Development

(``HUD'') are hereby approved, subject to the modifications contained

in this judgment and decree. As used herein, ``individual desegregation

plan''or ``desegregation plan'' includes both the original, individual

desegregation plan filed by HUD for a particular PHA and the individual

plan amendment filed by HUD for that PHA. Within ninety days from the

issuance of this judgment and decree HUD shall re-file the individual

desegregation plans, which shall fully incorporate the amendments to

such plans, in order that a fully integrated plan for each PHA will be

on file.

2. The desegregation plans shall be implemented and interpreted in

a manner consistent with the applicable provisions of HUD's East Texas

Comprehensive Desegregation Plan (``Comprehensive Plan'') and with the

provisions of this judgment and decree. HUD shall discharge all duties

imposed upon HUD by the terms of the Comprehensive Plan and by the

provisions of this judgment and decree. In the event of any

inconsistency or conflict between the provisions of this judgment and

decree and the provisions of either the Comprehensive Plan or the

desegregation plans, the provisions of this judgment and decree shall

be controlling.

3. All orders, including the interim injunction previously issued

in this action, shall be in full force until HUD attains unitary

status, as defined in this judgment and decree, and judicial

supervision ends in accordance with this judgment and decree. All

previous orders entered in this action shall be interpreted in a manner

consistent with this judgment and decree. In the event of any

inconsistency or conflict between the provisions of this judgment and

decree and the provisions of any earlier order, the provisions of this

judgment and decree shall be controlling.

4. All provisions of this judgment and decree shall require, or be

construed as requiring, compliance with federal statutes as they now

exist, or as they may be amended or enacted.

I. Physical Improvement to Projects and Neighborhoods

1. Financial assistance for physical improvements specified in the

desegregation plans shall be provided by HUD or, in the case of

neighborhood improvements receiving financial assistance under the

Community Development Block Grant Small Cities Program (``CDBG Small

Cities Program''), by the State of Texas, within seven years of the

date of this judgment

[[Page 50383]]

and decree. The review and approval process for applications for

financial assistance shall be conducted in accordance with all

applicable laws and regulations, including the rules governing

competitive programs, where appropriate.

2. Each such physical improvement shall be completed as soon as is

feasible and practicable after approval and funding and, in no event,

shall the time period for the completion of any such physical

improvement exceed a period of three years from the date upon which the

application is approved and funded. With respect to neighborhood

improvements being carried out by a municipal government with financial

assistance under the Community Development Block Grant Program (``CDBG

program''), it shall be the responsibility of HUD to take all

appropriate actions within HUD's control to obtain completion of those

neighborhood improvements within the time periods specified herein.

3. If any municipal government fails to take an action necessary to

complete the neighborhood improvements specified in the PHA's

desegregation plan, HUD shall take appropriate action in accordance

with the regulations governing the CDBG program. These actions may

include (i) enforcement mechanisms available to HUD under its

obligation affirmatively to further fair housing and (ii) causing the

PHA to institute against the municipal government enforcement based on

the municipality's violation of the cooperation agreement between the

PHA and the municipality.

4. If any PHA fails to take an action necessary to complete the

physical improvements specified in the PHA's desegregation plan, HUD

shall take appropriate enforcement action against the PHA. These

actions may include one or more of the actions described in the

Comprehensive Plan at p. 20 for dealing with the failure of a PHA to

follow its desegregation plan.

5. Where HUD has required improvement of neighborhood conditions as

part of the desegregation remedy for a PHA, HUD shall cause that PHA

and the responsible municipality to enter into a memorandum of

understanding under which the municipality agrees to carry out the

required neighborhood improvements. Each such memorandum of

understanding shall identify the neighborhood conditions to be

corrected or upgraded and describe the work to be done in carrying out

such correction or upgrading. If such work requires funding under the

CDBG Program, the memorandum of understanding shall also contain a

preliminary cost estimate for the required work. All such memoranda of

understanding shall be entered into by the PHAs and their respective

municipalities no later than July 1, 1995. All such memoranda of

understanding shall be submitted for the approval of the court. Upon

approval by the court, the memorandum of understanding between a PHA

and a municipality shall define the full extent of the obligation to

correct or upgrade neighborhood conditions in that PHA and in that

municipality.

6. In approving applications for the funding of physical

improvements, or the provision of amenities, to low-rent public housing

projects in the class action area, HUD shall, to the extent consistent

with applicable statutory and regulatory requirements, give priority to

the funding of applications for making such improvements, or providing

such improvements, to racially identifiable African-American projects,

i.e., low-rent public housing projects in which seventy-five percent

(75%) or more of the residents are African-Americans.

7. The amended individual desegregation plans require, and the

comprehensive plan contemplates, certain physical improvements which

include, inter alia, the provision of air conditioning equipment,

laundry facilities, community centers, and playgrounds. Plaintiffs

additionally seek the provision of carpeting, dishwashers, a utility

allowance to account for the reasonable use of air conditioning, and

garbage disposals in predominately and historically African-American

projects. Moreover, plaintiffs identify other conditions present at

predominately and historically African-American projects that are not

present at the historically and predominantly white projects, including

inadequate security and maintenance.

HUD shall satisfy the obligations of the individual desegregation

plans as they pertain to amenities and services. In addition to those

amenities and services required by the individual desegregation plans,

HUD shall provide the amenities and services available in any of the

historically and predominantly white projects at the historically and

predominately African-American projects of like or similar kind within

the PHA. The amenities and services required at the non-elderly family

units at historically and predominately African-American projects in a

given PHA are to be determined by evaluating the historically and

predominately white non-elderly family units within the same PHA. For

example, HUD must ensure that the historically and predominately

African-American non-elderly family units include carpeting if a

historically and predominately white non-elderly family unit includes

carpeting. Moreover, both projects shall be staffed with maintenance

personnel in equal numbers or such numbers as necessary to maintain the

premises in substantially similar condition.

II. Creation of Desegregated Housing Opportunities

1. Within seven years from the date of this judgment and decree,

HUD shall create a total of 5,134 desegregated housing opportunities

for elderly and non-elderly class members in non-minority census blocks

in the class action area. Desegregated housing opportunities shall be

offered, first, to class members residing in predominately African-

American low-rent public housing projects, second, to class members who

are on a waiting list for low-rent public housing as of the date of

this judgment and decree, and, third, to class members who apply for

low-rent public housing subsequent to the date of this judgment and

decree.

2. a. The term ``non-minority census block'' is defined in

accordance with the ``\1/4\ mile radius'' methodology described in the

report of the East Texas Demographic and Mapping Analysis conducted by

George Galster of the Urban Institute under a contract with HUD

(Defendants' Exhibit 116). A given census block shall be regarded as a

non-minority census block, if the area consisting of the given census

block, plus all census blocks within the PHA jurisdiction whose

centroids lie within a \1/4\ mile radius of the centroid of the given

census block (i) has a percentage of white population of more than

eighty percent (80%), or (ii) has a percentage of white population

greater than 100%, minus the PHA jurisdiction's overall percentage of

African-American population.

b. Notwithstanding subsection II.2.a., a census block will not be

regarded as a non-minority census block, if (i) more than fifty percent

(50%) of the African-Americans living in the area described by the \1/

4\ mile radius methodology are concentrated in individual census blocks

with more than eighty percent (80%) African-American population, or

(ii) the population of the area described by the \1/4\ mile methodology

is more than forty percent (40%) African-American or (iii) geographic,

demographic, or social factors, including proximity to racially

impacted areas or isolation from population centers or community

services, indicate that the census block

[[Page 50384]]

should be regarded to be in a racially impacted area.

3. To the maximum extent feasible and practicable, HUD shall,

through the use of tenant-based housing assistance, create within each

PHA jurisdiction, the number and type (elderly and non-elderly) of

desegregated housing opportunities which HUD has determined to be

needed within each particular PHA jurisdiction, as indicated in

Defendants' Hearing Exhibit No. 119, Table 1.

4. If the number of desegregated housing opportunities needed

within a particular PHA cannot be created through the use of tenant-

based housing assistance, that PHA's unmet need shall be satisfied by

offering class members residing within that particular PHA a

desegregative housing opportunity located in an adjacent jurisdiction.

Such adjacent jurisdiction can be no more than thirty-five miles from

the PHA and must be accessible from the PHA by adequate and feasible

highway links and public transportation.

5. If the number of desegregated housing opportunities needed

within a particular PHA cannot be created through the use of tenant-

based housing assistance, either within the PHA jurisdiction or an

adjacent jurisdiction, the HUD shall, to the maximum extent feasible

and practicable, and consistent with all statutory and regulatory

requirements, satisfy that PHAs unmet need for desegregated housing

opportunities through the use of project-based Section 8 existing

housing certificates and vouchers.

6. If the number of desegregated housing opportunities needed

within a particular PHA cannot be created through the use of either

tenant-based or project-based Section 8 housing assistance, then that

PHA's unmet need shall be satisfied through the creation of

desegregative housing opportunities anywhere within the class action

area.

7. HUD shall be given credit for the creation of a desegregated

housing opportunity if:

a. A class member has been provided by HUD with a desegregative

housing voucher or housing certificate. A desegregative housing voucher

or housing certificate is a Section 8 existing housing certificate or

housing voucher, limited for the first 120 days to use in non-minority

census blocks.

b. The class member is offered mobility counseling to assist the

class member to locate an appropriate housing unit.

c. The class member has been referred by the mobility counseling

service to a landlord who is willing to accept the class member's

certificate or voucher for the rental of a housing unit.

d. The housing unit offered by the willing landlord is located in a

non-minority census block.

e. The unit offered by the willing landlord meets the applicable

Section 8 existing housing quality standards in 24 CFR Sec. 882.109,

and contains an appropriate number of bedrooms for the particular

applicant's family size and composition.

f. The unit offered by the willing landlord is located outside an

area where a reasonable African-American would perceive significant

racial hostility.

g. There must be no legitimate basis for the class member to refuse

the offered unit. Legitimate reasons to refuse an offer are limited to

remoteness to jobs or day care and lack of adequate and feasible

transportation. The burden is on the applicant to demonstrate that the

proffered reason is legitimate. The special master, or some designated

representative of the special master, shall make the initial

determination as to whether the applicant has carried his or her burden

in this regard.

8. HUD shall also receive credit for the creation of a desegregated

housing opportunity, whenever a class member who has been provided with

a desegregative housing certificate or housing voucher accepts an offer

of a housing unit located in any non-minority census block in the class

action area, or in any other non-minority area, but the unit was not

obtained through a referral from the housing mobility service.

9. HUD shall receive credit for the creation of a desegregated

housing opportunity, if a class member is referred by the mobility

counseling service to a landlord willing to rent the class member, with

or without the use of a Section 8 housing certificate or voucher, a

suitable housing unit in a privately owned, HUD-assisted and/or HUD-

subsidized housing development, or in a housing development assisted or

subsidized by the Farmers Home Administration, provided that the

offered housing unit meets the location requirements set forth in

Paragraph II.7.d., above, and provided that the African-American

occupancy of the project in which the unit is located does not exceed

fifty percent (50%).

10. HUD shall also receive credit for the creation of a

desegregated housing opportunity whenever a class member, with or

without the use of Section 8 housing certificate or voucher, accepts an

offer of a housing unit in a privately owned, HUD-assisted and/or HUD-

subsidized housing development, or in a housing development assisted or

subsidized by the Farmers Home Administration, where (i) the housing

unit is located in any non-minority census block in the class action

area, or in any other non-minority area, (ii) the African-American

occupancy of the project in which the unit is located does not exceed

fifty percent (50%) and (iii) the unit was not obtained through a

referral from the housing mobility service.

11. The mobility services referred to above shall be provided by

the Fair Housing Services Center, a private, non-profit organization to

be established and funded by HUD for a five-year period, as set forth

below.

12. The Fair Housing Services Center shall administer the

desegregative Section 8 housing vouchers and certificates under

contract with one or more PHAs.

III. Elimination or Reduction of Racially Identifiable Low-Rent Public

Housing Projects

1. If the individual desegregation plan for a particular PHA does

not require the use of any of the Waiting List Initiatives, that

specific PHA shall continue to use a race-conscious tenant selection

assignment plan in conformity with the requirements of Paragraph 2 of

the Interim Injunction entered in this action on March 3, 1988.

2. Any particular Waiting List Initiative specified in an

individual desegregation plan shall be fully implemented by the PHA

within six months of the date of this judgment and decree. Any PHA that

is required to implement a Waiting List Initiative shall also continue

to use a race-conscious tenant selection assignment plan in conformity

with the requirements of Paragraph 2 of the Interim Injunction entered

in this action on March 3, 1988. HUD shall provide any and all

assistance to the PHA necessary to implement the Waiting List

Initiative, such as the drafting of detailed instructions to guide the

PHA in the implementation of the Waiting List Initiative, and the

preparation of interagency agreements required for the Cross-Listing

Initiative, the Merged Waiting List Initiative, the Area-Wide Waiting

List Initiative and the Housing Opportunities Waiting List Initiative.

3. If any Waiting List Initiative, such as the Affirmative Action

Waiting List Initiative, employs race-conscious practices for the

selection of tenants for assignment to a low-rent public housing

project, an offer of alternative housing shall be made to any class

member who would otherwise have been offered a unit in the project but

for the need to

[[Page 50385]]

achieve a desired racial balance in the project within sixty days of

the date on which the public housing unit in question became available

for assignment.

a. Such an offer of alternative housing shall be made to a class

member if (i) the class member has applied for low-rent public housing

with the PHA operating the project; (ii) the class member meets all

applicable eligibility and screening requirements for admission to

public housing operated by the PHA; and (iii) and the class member

would otherwise have been offered an available unit in the project but

for the advancement of a non-class member applicant to the head of the

waiting list for that unit under the terms of the Waiting List

Initiative, i.e., the class member held the highest position on the

waiting list above the non-class member applicant whose position on the

waiting list was advanced under the terms of the Waiting List

Initiative. A non-class member applicant may not be advanced on a

waiting list, unless it has been verified that the non-class member

applicant meets all eligibility requirements and tenant selection

criteria applicable to the low-rent public housing project.

b. In order to satisfy the requirements for an offer of alternative

housing (i) the class member must be provided with a desegregative

Section 8 housing voucher or housing certificate and (ii) all other

requirements for the creation of a desegregated housing opportunity

specified in Paragraph II.7., above, must be satisfied.

c. The public housing unit that otherwise would have been offered

to the class member shall remain vacant pending receipt by the class

member of an offer of alternative housing.

d. If the class member who would otherwise have been offered the

public housing unit rejects an offer of alternative housing HUD shall,

within seven days of such rejection, provide plaintiffs with a written

notice stating the name of the applicant and stating the basis for

HUD's determination that the applicant rejected the offer of a dwelling

unit meeting the requirements for an offer of alternative housing.

e. The plaintiffs shall have seven days from the date of notice

under the preceding subparagraph to submit to HUD, in writing, any

objections plaintiffs may have to HUD's determination. If timely

objections are submitted by the plaintiffs, the public housing unit

shall remain vacant pending a decision by the special master. Except as

provided in Paragraph III.3.b. (referring to Paragraph II.7.g.), above,

in any such proceeding, HUD shall bear the burden of proving that the

applicant has rejected an offer of alternative housing. If no objection

is made, or, upon objection, the special master determines that an

offer of alternative housing was received by the class member who would

otherwise have been offered the public housing unit, the class member

shall be placed on the waiting list in the position occupied by the

non-class member advanced in accordance with the Waiting List

Initiative, and the non-class member applicant advanced under the

Waiting List Initiative shall be assigned to the public housing unit.

Either party dissatisfied with the decision of the special master may

seek review of that decision by this court within seven days of the

special master's decision.

f. If a class member rejects an offer of alternative housing after

previously receiving an offer of alternative housing and rejecting such

offer, the special master shall determine whether the applicant will

again be placed on the waiting list in the position occupied by the

advanced non-class member applicant or will receive different

consideration in light of the unusual circumstances. Either party

dissatisfied with the decision of the special master may seek review of

that decision by this court, within seven days of the special master's

decision.

g. If no offer of alternative housing is made within sixty days,

HUD shall notify the special master, within seven days, of the

circumstances preventing an offer of alternative housing. The special

master shall investigate the conditions already causing HUD's failure

to make an offer of alternative housing. If the special master

determines that HUD is acting in good faith, the class member shall be

provided a desegregative housing certificate or voucher which may be

used without the geographic restriction described in Paragraph II.7.a.,

above, within the time period described in 24 C.F.R. Sec. 882.209(d). A

finding that HUD acted in bad faith shall be evidence to be considered

in relation to any motion to hold HUD in contempt.

4. HUD shall provide a section 8 existing housing voucher to the

non-class member applicant who would otherwise have been offered an

available public housing unit but for the advancement of a class member

to the head of the waiting list for that unit under the terms of a

Waiting List Initiative, i.e., the non-class member applicant who held

the highest position on the waiting list above the class member

applicant whose position on the waiting list was advanced under the

terms of the Waiting List Initiative.

5. In determining whether to require a PHA to use the Affirmative

Action Waiting List Initiative, or any other race conscious tenant

selection and assignment plan, for a particular low-rent public housing

project, HUD shall not consider the impact of the integration of the

project on the racial composition of the neighborhood surrounding that

project.

IV. Fair Housing Services Center

1. HUD shall establish a Fair Housing Services Center (``FHSC''),

the functions of which must include providing assistance to class

members in locating and obtaining affordable desegregated housing in

areas where they choose and, additionally, providing class members with

fair housing counseling services.

2. The FHSC shall be operated by a private, non-profit

organization. HUD shall provide funding to the FHSC in an amount no

less than $500,000 per year for a period of five years.

3. Within sixty days of the date of the entry of this judgment and

decree, HUD shall serve upon the plaintiffs, and submit for approval of

the court, a proposed Request for Proposals (``RFP''), inviting

private, non-profit organizations to apply for a contract with HUD to

operate the FHSC. The plaintiffs shall have ten days from the date of

service within which to file objections to the proposed RFP. If such

objections are filed, the court shall conduct such proceedings as are

required to resolve the objections.

4. Upon approval of the RFP by the court, HUD shall publish the RFP

in the Commerce Business Daily. Within 120 days of the date of

publication of the RFP, HUD shall make its selection of the

organization to operate the FHSC.

5. The FHSC shall provide the following services:

a. pre-screen all clients of the FHSC who have not already been

screened by a PHA, to document each client's ability and willingness to

comply with an acceptable lease and HUD program requirements;

b. provide information and counseling with respect to housing

opportunities to class members;

c. monitor the compliance of the providers of low-income housing in

the class action area (low-income public housing and assisted housing)

with the fair housing laws and the requirements placed upon the

providers under the Comprehensive Plan and the individual desegregation

plans;

d. encourage and assist in the development of desegregative housing

opportunities, including outreach to private landlords in non-minority

areas, as well as counseling and referral

[[Page 50386]]

services to Section 8 existing housing tenants and applicants who wish

to utilize their Section 8 certificates or housing vouchers in a manner

furthering desegregation;

e. encourage and assist class members to make desegregative moves

within the low-income housing program and to privately owned assisted

housing programs;

f. administer the desegregative housing certificates and vouchers

to be provided by HUD under contract with one or more PHSs;

g. give each class member written notice, every six months, in a

form and distribution method to be approved by HUD, of all HUD-assisted

and/or HUD-subsidized low-income housing developments in the housing

markets where the class member resides that offer the class members a

desegregative housing opportunity, provide notice of the full address,

telephone number, and name of the person responsible for accepting

applications for the development, a short description of the type of

housing offered by the development, and the general eligibility

requirements for the development.

6. The plaintiffs may seek review, in this court, of HUD's final

selection of the organization to operate the FHSC. Such review shall be

in accordance with the standards and procedures for judicial review set

forth in the Administrative Procedure Act, 5 U.S.C. Secs. 701, et seq.

V. Racially Hostile Sites

1. HUD shall utilize its statutory and regulatory authority to

proceed against any resident who acts to deprive any other resident of

his or her civil rights under the United States Constitution or

applicable civil rights statutes.

2. HUD shall assist municipal leaders, including, but not limited

to, the city's mayor and its city counsel, in undertaking actions to

address hostility including, but not limited to, supplying trained

security officers to protect the physical safety of African-American

residents when necessary.

3. Within sixty days of issuance of this judgment and decree, HUD

shall determine in which localities class participation is limited

because of racial hostility such that it is unlikely class members will

actually use the existing public housing.

4. HUD shall develop a supplemental desegregation plan for each

site deemed by HUD to be racially hostile. The supplemental plan shall

examine all avenues available to HUD effectively to counterbalance

racial hostility, thereby facilitating class participation and the

implementation of the individual desegregation plans and this judgment

and decree. Such supplemental plan shall be submitted to the special

master for his approval within six months of the designation of a site

as racially hostile.

VI. Unitary Status

1. When HUD and each PHA have satisfied the requirements as

provided for in this judgment and decree and no racially identifiable

low-rent public housing projects exist within the class action

counties, HUD may apply to the court for a declaration of unitary

status because of the elimination of all vestiges of discrimination

attributable to HUD. See Hills v. Gautreaux, 425 U.S. 284, 297 (1976).

A project shall be regarded as non-racially identifiable if less than

seventy-five percent (75%) of the occupants of the project are members

of the same race.

2. Upon issuance by the court of a declaration of unitary status,

judicial supervision pursuant to this judgment and decree, or any other

order entered in this case, of HUD's activities shall terminate.

3. Ten years after the date of this judgment and decree, if the

court's jurisdiction has not been sooner terminated, the court shall

determine whether its jurisdiction over HUD's actions should be

continued or terminated. The court shall extend its jurisdiction over

HUD if it determines that any of the specific obligations to be

performed under this judgment and decree have not been accomplished

within that time period. If the court extends its jurisdiction for this

reason, its jurisdiction shall end upon fulfillment of those specific

obligations.

[FR Doc. 96-24506 Filed 9-24-96; 8:45 am]

BILLING CODE 4210-33-P