SR-106-017-02 (2)
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OCT 2 8 1980
24,1980
10(# - O/?-O"2-
Santa Monica, California. October
TO: Mayor and City Council
FqOM: Members of the Housing Commission
SUBJECT: Endorsement Request for FaIr Housing Legislation
Senate Bill 5506 will come before the Senate sometime in early November. This
Bill would amend the existing fair housing laws to extend fair housing protection
to the physically handicapped, and establish an ad~inistrative hearing procedure
for violations of the law.
It is expected that several weakening amendMents to the Bill will be introduced.
One of these proposes to delete the ad~inistrative remedies. Another proposed
amendment to 5506 would require that a discriMination victim prove that the dis-
criminator intentionally discriminated.
It is recomMended that City Council authorize the Housing Commission to send
mailgrams to appropriate members of the Senate urging the passage of 5506
without amendment.
Prepared by. Nancy McFarland
N~1 5 h
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OCT 2 8 1980
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CURRENT DEVELOPMENTS .
The conference wIll be held at the Sheraton National
Hotel. ColumbIa PIke and Washmgton Blvd. Arlmgton,
VirginIa 22204 RegistratIOn can be phoned In to
703-521-1900. or requested by mad A block of rooms has
been reserved for semmar regJstrants through August 20
After that rooms WIll be avatlable on a space-avallable basIs
only
To register for thIS conference, or to obtam more mforma-
tlOn. call Debra Hyde. Conference Coordmator at
202-466-8592
Alternatl\;ely. wnte to Ms Hyde at IPED, 1800 M Street,
]'; W , SUIte 400-South, Washmgton, D C 20036
PEOPLE IN THE NEWS
CAROL Y'\i WILLlA~lS. formerlv an executIve assistant to
HeD General Deputy AssIstant. Secretary for Housmg
CL YDE T J \ICHENRY, has been named actmg deputy
assistant secretary for mterprogram and areawIde concerns
In the OffIce of CommuUlty Plannmg and Development
Wllhams. who IS expected to fIll the posItIOn permanently,
Will oversee the offIces WhIch handle the SectIOn 701
program areawIde housmg opportumty plans, regIOnal hous-
mg mobility. the secretary's dlscretJonary fund and en-
vIronmental qual1ty lssues
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JOH" D MC'lEES, a veteran federal housmg program
admmlstrator who has been servmg as a housmg consultant
smce hIS retirement. wIll return to HUD as deputy aSSIstant
secretary for smgle famIly housmg He replaces ~IIL TO\; J
FR4.1\"CIS, who left the post m June Mc~ees began hiS hous-
109 career With the :'\atlOnal Housmg ~gency m 1946 and
held vanous posts at HUD. mcludmg that of acting deputy
.
179
assistant secretary for smgle famlly housmg, before retlr-
mg
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WILLIAM J POPEJOY w1l1 Jom the Dmted Savmgs
ASSOCIatIOn of Houston as preSIdent PopeJoy, formerly
preSIdent of the Federal Home Loan ~ortgage CorporatIon,
reSigned as preSIdent of Ameflcan Savmgs and Loan
ASSOCiatIOn and Its parent company. First Charter FmancIal
Corp of Beverly Hills, CalIf, m July
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JOH\; LANGE has been elected chairman of the board of
the FoundatIOn for CooperatIve Housmg Lange IS a former
preSIdent of the :'Jatwnal ASSOCIatIOn of Housmg and
Redevelopment OffICIals CNAHRO) KARL FALK was
reelected VIce chaIrman, and CHARLES DEAl'! was elected
preSIdent The foundatIon and ItS subSidIary. FCH Inter-
national fnc wIII contmue to operate as nonprofit entIties to
promote the development of low- and moderate-mcome
housmg m the Vmted States and overseas A former sub-
sldlary. FCH Services. Inc , IS now operatmg as an mdepen-
dent entity under the ov,nershlp of Its preSident. JEFFREY
Co SPR4.GE'\S, and semor vice preSIdent. TERRY F.
SPRAGE::\S
lk**
:\lAR Y C CLt:TE has been appomted director of
legIslative serVices for the NatIOnal ASSOCiatIOn of Housmg
and Redevelopment OffiCials Clute. who had been a com-
mumty and economIC development program offIcer at
N"AHRO. replaces WILLIAM WITTE, who left the XAHRO
leglslatlve post to become an e'l:ecutlve assistant to BUD
ASSIstant Secretary for Housmg LA\\'RE1'IICE B SIMO"iS
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G9J
CONGRESS
SENATE PANEL RESTORES ADMINISTRATIVE
ENFORCEMENT TO FAIR HOUSING MEASURE
Admmlstrauve procedures for handhng faIr housmg cases
were restored to a Senate bill to amend the 1968 Fair Hous-
Ing Act (5 5061 dunng Senate JudiCIary CommIttee con-
SIderatIOn of the measure July 30
The commIttee voted unammously to report the bll!. c1ear-
mg the way for Senate floor actIOn The House voted June 12 to
approve ItS. versIOn of amendments to the Fair Housmg Act
(H R 5200}. which also creates admlOlstratlve fair housmg
enforcement procedures
'We're gomg to pass thIS bill thIS vear." a Senate aIde told
HDR. predICtIng that Congress wlli send a blll to PreSIdent
Carter lor hiS signature belore adJournmg Jl1 October After
the Senate acts. a compromIse versIOn must be worked out
m conference and approved by the House and Senate
The procedure establishIng Independent administrative
law Judges to hear cases brought under the faIr housmg law
was restored to the Senate bIll by a 10 to 6 \'ote on an amend-
ment offered by Sens Birch Bayh i D-IndJ and Howell Hefhn
rD-Ala)
8-480
Fair Housmg ReView CommiSSion
The Bayh-Befhn amendment allows HUD to brmg actIOn
on faIr housmg complamts before admllllstratlve law Judges
appOinted by a Fair Housmg ReView CommiSSIOn
The commISSIOn would conSIst of three members appOlnted
by the preSIdent H would appomt and employ the ad-
mInistrative law Judges The commISSion would have the
power to renew the Judges' deCISIOns on request and could
modify or remand the deCISIons for further actIOn
As In the origInal bIll. the Judge could order relIef and
compensatIOn to nctlms of prohibited dlscflmlllatlOn and
Impose CIVil penalties up to $10.000
DeciSIOns of the admlmstrauve law Judge could be appeal-
ed to the appropnate federal appeals court. but only on the
baSIS of the record of the ongmal proceedmg
The Bayh-Hefhn procedure differs from a SImilar ad-
ministrative enforcement mechamsm mcluded m the ongmaI
bill by provldmg that the commiSSIOn, and not HUD, WIll ap-
pomt and employ the admmlstratlve law Judges
The ongmal admmlstratlVe procedure was deleted m ac-
tIOn by the Senate subcommittee on the ConstitutIOn In June
The subcommittee adopted an amendment offered by Sen
Copyrlghl <C 19BO by The Bureau of NatIonal Affairs Inc
(j091 5939.aO.$Ov50
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DennIs DeConcInI (D-Arlzl WhICh pro\:lded Instead for faIr
hOUSIng cases to be handled In expedIted proceedIngs before
magistrates appOInted by the appropnate federal court
4.ppeals could be made on a de nOl'O baSIS before a Jury In
federal dIstrict courts
Concern About HUD Role
The BaYh-Heflm amendment whIch re-establIshed the ad-
mmlstrative procedure addressed the concerns of DeCOnCInI
and others that admlnlstratwe law Judges aPPoInted by HUD
mIght be bIased and that the ongmal procedure In effect
made HL'D the prosecutor and Judge for faIr hOUSing cases
The change, however. dId not satisfy DeConCInI and other
opponents of admInIstratIVe enforcement DeConclnI argued
agamst the Bayh-Heflm amendment. saYing. "It creates an
additIonal federal bureacracy. but prOVIdes no sIgnIfIcant
advantage over the magIstrate prOVISIOn .,
Opponents of the amendment argued that the Judges stIll
may be bIased m favor of HUD and that the amendment dId
not- pro\'lde the nght to an appeal de novo before a Jury
Bayh and other supporters of the change saId the ad-
mInistratIve system was sImpler and less costly than the
magIstrate procedure
In the versIOn of the amendments passed by the House. the
admlnlstratl\'e law Judges would be appomted by the Depart-
ment of Justice
Other Amendments
Other amendments adopted or rejected by the JudIciary
CommIttee m a poll of Its members follOWIng the vote to
report the bill Include
~ -\n amendment offered by Sen Ornn G Hatch lR-Vtah)
....hleh would reqUIre that the mtent to dISCriminate be shown
In order to prove a VIolatIOn of the act Rejected
~ -\ slmllar amendment br Hatch which would reqUIre
that the mtent to dlscnmmate be shown In order to stnke
do\~n local land use and zonIng laws as Illegally dIS-
cnmmatory Rejected
~ -\ Hatch amendment whIch would alloy, appraIsers to
conSIder all factors relevant to estlmatmg a property's
..alue prOVIded that such factors not be used m an
intentionally diSCrImInatory way Adopted
~ \ change sought by Hefhn whIch would speCIfy, contrary
to court decIslors that only dIrect VIctIms of dlscrlmmatIOn
ma\ ~f;'f;'k rehet under the 'admInistratIve prOVISIOns of act
.\dopted
~ -\ Hatch amendment which would prOVIde for con-
greSSIOnal veto power over HFD regulahons to Implement
the act Rejected
~ -\n amendment sponsored by Sen Strom Thurmond
i R-SC I "hICh would lmllt purntlve damages whIch could be
a~sessed In fair hOUSIng cases to $1. 000 Rejected
· " change ad\'ocated by Sen Howard 1\-1 !'vletzenbaum
r D-OhlO I \\hlch would restore a prO\'ISIOn 10 the ongInal
bIll prohIbItIng dIsCrimInatIOn In property appraIsals
Rejected
(J flJ I'{I( hqrfJ1md on the jOlr lzousmg amendments,
'E'(' ( /[rrCllr /)('n>!fJpments, Fal 7, pp 579, 878. 1077,
1 fll ~ FP ) -15)
HOUSI N.EVELOPMENT REPORTER
mg from the recess for the DemocratIc natIonal convention
Mc\lurray saId he beheves the House WIll pass the bIll and
a compromIse between Its verSIOn and the Senate bIll (S
2(19) can be worked out before the end of the fiscal year
September 30 r For 1)((( kgmund on the House and
"'('/111 rr lilli- ~ee ClIrrelll Dererop>1l€"!ts. \'01 7. pp
J() J6 )037 )O.J-I 1072. \o! ii, pp 44 1i9 93)
Both House and Senate HVD appropriatIOns subcom-
mittees plan to walt untIL a conference report IS approved
before conSIderIng the 1981 fundmg levels for aSSisted hous-
Ing Industry and congressIOnal sources have expressed con-
cern that thiS may not happen until after the start of the ne'v
fIscal Year. forCIng enactment of a contlOuIng resolutIOn to
proVide housmg funds
I\Jeanwhlle, '\"atIOnal ASSOCIatIOn of Home BUIlders presI-
dent MerrIll Butler blasted the House leadershIp for post-
ponIng action on the housmg blll
. The failure of House leaders to schedule a floor vote on
the relatively noncontroversIal housmg bIll IS dIsgraceful
and reflects their callous attItude to the plIght of the housmg
mdustry that was brought to the brInk of dIsaster by the
government's mIsgUIded and reckless economic polICIes,"
Butler saId
DespIte a rebound In home sales and productIOn. Butler
saId the upturn has been concentrated III certam areas and
that a national reco\'ery IS stIli a long way off He called on
the House to pass the bill ImmedIately
SENATE APPROVES BLOCK GRANT
PROGRAM FOR ENERGY CONSERVATION
The Senate has approved a measure sett10g up an energy
conservatIOn block grant program SImIlar to the commumty
development block grant program The energy block grant
program IS part of the Energy :\oIanagement Partnership Act
(S 12801, which passed the Senate on July 25
<\llocatIOn of funds to states would be based on populatIOn
and need factors, mclud10g the extent of poverty m the
states. the extent of housmg overcrowdIng. and the age of
hOUSIng
Wlthm states. fundIng would be broken down mto three
categones metropolitan CItIes and urban countIes In
metropobtan areas, umts of local government wlthm
metropohtan areas (other than metropolItan CItIes and ur-
ban countIes l. and umts of local governments In non-
metropolItan areas
The Department of Energy (DOE), In consultatIon WIth
Ht:D. would admInIster the grants Metropohtan CItIes and
urban counties would be entItled to fundmg, and grants
would be awarded to other commUllitles on a competitIve
baSIS
A consortIum of small CItIes wlthm a county could also
apply for an entItlement grant If the consortIUm represents a
popula tIon of at least 200, 000
AppbcatIons for grants must contam a commumtyenergy
conservatIon strategy Governors are asked to comment on
the applIcatIOns. and applIcatIons for grants would have to
be sent concurrently to the state government
Hun and DOE would set up an mteragency task force to
APPROPRIATIONS BillS FORCE HOUSE permIt DOE to take full advantage of HUD's capaCIty to
TO DELAY ACTION ON HOUSING AUTHORIZATION delIver aSSIstance dIrectly to local governments
4. full schedule of approprIatIOns bIlls has kept the House The act would also consol1date applIcatIons for eXIstIng
ot RepresentatIves from takmg up the blll (H R 7262) energy conservatIon programs for states. IncludIng the
authorIzmg federal hOUSIng and commumty development energy extenSIon servIce and the low-mcome weatherIzatIon
programs through fIscal 1981 program The mtent IS to reduce the admlmstratlve cost of
The leadership IS InsIstIng on movIng as many ap- these programs
propnatlOns bIlls as pOSSible We Just got caught 10 that To apply for fmanclal assIstance under the consohdated
bind. saId Gerald R McMurray. staff dIrector of the House appltcatlOns procedure. states would have to submIt state
hOUSIng subcommittee McMurray saId he expected the energy plans Plans must deSCrIbe state energy supply and
House to act on the bIll the week of August 18, after return- demand and energy and renewable resource goals A
8-4-80 COPYright'" 1980 by The Bureau of National Affairs lnc
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. OCT 2 8 1980
\\Testside Fair Housing Council
10835 Santa ),1omca Bhd . ..203. Lo:, Angeles. CA 90025
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SUPPORT OPEN HOUSING
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DR CHA;:t:"'ES Z WILSON
October 9, 1980
Nancy McFarland
CDBG Coordinator
1865 Main St.
Santa Monica, CA 90401
Dear Nancy:
Here is the brief SUll:.lnary of the history of the
federal. fair ho~sing laws which Cheryl Rhoden
requested at the september 25 Housing commission
meeting. 5506 did not come up for a vote before
the Senate's October recess. Proponents of the
bill are hoping it w~ll be brought up when the
Senate returns in Nov~ber. Consequently, a mail-
gram in support of 8506 from the Housing Commission
would still be in order.
~
Sincerely,
~~
Schelly ~n en
Housing ~~~elor/Attorney
Santa Monica Fair Housing Program
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OCT 2 8 1980~
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(213) 475.9671
SUPPORT OPEN HOUSING
\\estside Fair Housing Council
10835 Santa Monica Blvd., .203, Los Angeles, CA 90025
Fair Ho~sing ~nendments of 1979
This legislation would amend the existing federal fair
ho~s~~g laws. The two wajor changes which would occur are
extention of fair housing protections to the physically handi-
capped and establishment of an acrministrative hearing pro-
cec~re for violations of the law.
The legislation has passed the House of Representatives
(HR5200), and a campanian bill is now before the Senate (5506)
anc should come to ehe floor when the Senate returns after the
~ovember election.
h~en the bill C08es to the floor, several Senators plan
to introduce weakening ~en~ents. Senator Thurmond is expected
~o introduce amendwents ~hich would delete L~e administrative
~e7e~ies. Under the prese~t federal fair housing laws anyone
~ho is discr~inated agqinst must go through the time-consuming
anc expensive process qf filing a law suit. Under the terms of ,
s506, a discrimination vict~ could file a complaint with HUD
anc an a~.inistrative hearing would be held. If either party
(the victim or the realtor) were dissatisfied with the hearing's
outcamet he or she co~ld appeal to a court of law. Thus, such
aa~~nistrative hearincs would make enforcement of the law much
~ore viable. ~
~~o~~er set of weakening ~endMents are expected to be introduced
by Senator Hatch. These amendments would require that a discrim-
ination victLu prove L~at the discriminator intentionally dis-
cririnated. Long-stand~ng legal precedents currently hold that
establishing a discriroinatory effect is sufficient to establish
unfair housing practices. For example, in challenging redlining
it is unnecessary to prove that a lending institution established
L,is practice for the purpose of discriminating against Blacks;
~t is sufficient to prove that the practice has the effect of
discr~inating against Blacks.