Immigration Policy Solutions: Supporting Child Migrants

Many Americans are frustrated with our immigration policies. But research and experience show that it’s not enough to focus only on the problems with our current approach. We also need to paint a picture of what the country would look like with workable, commonsense policies in place. This document discusses policies regarding unaccompanied child migrants and children coming with their families, and solutions so that we treat them in a manner consistent with human rights and due process.

Topline Message:

Our communities should act with care and compassion toward unaccompanied child migrants who have increasingly arrived at the border after fleeing violence and poverty in their home countries, and are attempting to reunify with their families. Unfortunately, our government has responded to this serious refugee situation by substantially increasing family detention and putting children on a fast-track deportation process without legal representation. This is a grave injustice and does not reflect our national values. Instead, we should implement policies that preserve children’s domestic and international human rights protections, particularly when they are in detention; provide them with legal representation; improve community support by providing case management services to all children upon reunification; and address the driving factors that push children that make a perilous journey.

Solutions

Renew Our Commitment to International Human Rights Norms

What the Department of Homeland Security (DHS) Should Do:

  • Ensure that every accompanied and unaccompanied child from contiguous countries such as Mexico is screened by licensed child welfare professionals to ensure appropriate care while in detention and adequate screening for immigration relief. Refrain from interviewing children from non-contiguous countries such as El Salvador, Guatemala, or Honduras who will be screened by licensed child welfare professionals in the custody of the Office of Refugee Resettlement. Current screening practices should also be improved so that child survivors of trafficking and persecution are effectively identified, referred for appropriate services, and when appropriate agents assist with trafficking certification.
  • Clarify DHS standards for prosecutorial discretion to recognize that children are eligible for a favorable exercise of that discretion, especially when deportation is against the child’s best interests. Prosecutorial discretion for all children should trump a child’s categorization as an enforcement priority if they have recently crossed the border.
  • End the use of family detention and utilize a range of alternatives, including placing families in community-based case management services or licensed child welfare programs that support the least restrictive form of custody, safety, and access to legal services.
  • Ensure that children and other people in vulnerable situations are not exploited or abused in short-term or long-term custody. This includes creating greater oversight and accountability to prevent shackling, handcuffing, inhumane detention conditions, inadequate access to medical care, and verbal, physical, and sexual abuse by implementing public, enforceable standards for all DHS detention facilities. Customs and Border Protection (CBP) should implement an access policy for civil society to allow for regular oversight and monitoring of its facilities. DHS should place child welfare professionals to oversee the care and custody of all children in CBP custody.

What Department of Justice Should Do:

  • Exempt children from the expedited removal process and ensure that children can consult with legal services before accepting voluntary return.

What Congress Should Do:

  • Require that the “best interests of the child” be “a primary consideration” in all procedures, actions, and decisions made by a federal agency or court re: unaccompanied children and principal child applicants.
  • In asylum cases, base the definition of “membership in a particular social group” on the immutable  characteristics test first used in Matter of Acosta, 19 I&N Dec. 211 (BIA 1985).

Ensure that Child Migrants Receive Adequate Representation

What Congress Should Do:

  • Mandate the appointment of legal counsel for all children in removal proceedings, including a mix of private pro bono representation and direct representation by appointed lawyers.
  • Establish a national legal service program to provide children with information about their legal rights   and conduct individual legal assessments.
  • Permit immigration judges the discretion to appoint an independent child advocate when necessary.

Encourage Safe and Legal Migration

What the Administration Should Do:

  • Allow parents who have Temporary Protected Status (TPS) to apply for derivative TPS for their children.
  • Expedite applications under the Central American Minors (CAM) Refugee/Parole Program.
  • Broaden access to the CAM Program by allowing parents without legal status to sponsor children and permitting children with viable refugee claims who do not have a parent in the United States to apply.
  • Use executive authority to permit a larger number of unaccompanied children into the United States as refugees and expand the use of humanitarian parole to include children fleeing harm and/or reuniting  with family.
  • End support of interdiction policies that deny children the opportunity to seek protection.

Address the Driving Factors for Migration

What the Administration and Congress Should Do:

  • Invest in community-based and comprehensive youth violence prevention strategies.
  • Make assistance to police and military conditional on compliance with basic human rights standards, particularly in El Salvador, Guatemala, Honduras, and Mexico, and use this leverage to reduce corruption and dissuade “mano dura” policies (zero-tolerance criminal law policies that violate human rights).
  • Strengthen the regional systems of protection for children and migrants in Central America and Mexico, particularly in child welfare, asylum, humanitarian visa, and anti-trafficking.
  • End economic agreements and policies that displace people and fail to uphold human and labor rights.
  • Sign, adopt, and ratify the International Convention on the Protection of All Migrant Workers and Their Families and the Convention on the Rights of the Child.

Talking Points

  • We should act with care and compassion toward children fleeing persecution and harm.
  • How we treat child migrants should reflect our national values of due process and human rights.

The research cited in this document is current as of June 2015.

Policy Recommendations to the President’s Task Force on 21st Century Policing

February 12, 2015

President’s Task Force on 21st Century Policing
Office of Community Oriented Policing Services
U.S. Department of Justice
145 N Street, N.E. 11th Floor
Washington, DC 20530

To the Members of the President’s Task Force on 21st Century Policing:

Thank you for the invitation, pursuant to Executive Order 13684, to provide The Opportunity Agenda’s recommendations on ensuring that policing protects public safety while upholding equal justice and fundamental human rights. Our comments focus, in particular, on ensuring that police departments and municipalities receiving federal funds fulfill civil rights obligations, as well as best practices, for eliminating racial and ethnic bias.

The Opportunity Agenda is a social justice communication and policy organization with the mission of building the national will to expand opportunity in America. A fair and effective criminal justice system rooted in public safety, equal justice, and due process is central to our mission.

Freedom from Bias is Crucial to Effective Policing and Required by our Constitution.

Respect for civil and human rights and freedom from racial and ethnic bias are central to strong, collaborative relationships between law enforcement and communities. And they are crucial to the Constitutional guarantee of Equal Protection Under Law that binds all states and municipalities, as well as the federal government, pursuant to the Fourteenth and Fifth Amendments.

Yet, there is ample evidence that racially and ethnically biased policing occurs, often without accountability, in many police departments around the country. That trend, moreover, demonstrably erodes community trust and public safety, as well as our national value of equal justice. Public opinion research by The Opportunity Agenda, among others, finds that African Americans and Latinos report unequal treatment and diminished belief in the fairness of law enforcement, as compared with white Americans.  The Opportunity Agenda, An Overview of Public Opinion and Discourse on Criminal Justice Issues, 2014, pg. 3, available at http://opportunityagenda.org/files/field_file/2014.08.23-CriminalJusticeReport-FINAL_0.pdf; The Opportunity Agenda, Opportunity Survey, 2014, pg. 78-83, available at. http://opportunity- survey.opportunityagenda.org/userfiles/Opportunity_Survey_Report.pdf. Addressing both the well- documented reality and the widely-held perception of biased policing is crucial to bridging that divide.

Police departments receiving federal funds must comply with Title VI of the Civil Rights Act of 1964 and it’s implementing regulations.

As recipients of federal financial assistance, police departments receiving federal funds pursuant to the COPS program or any other federal program are legally obligated to comply with Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, which prohibits discrimination based on race, color, or national origin.  This includes preventing and remediating racially biased policing.

U.S. Department of Justice regulations implementing Title VI for DOJ-funded programs and activities, 28 C.F.R. § 42.101 et seq., prohibit both intentionally discriminatory conduct and unjustified practices that have a racially disparate impact.  Specifically, fund recipients may not “utilize criteria or methods of administration which have the effect of subjecting individuals to discrimination because of their race, color, or national origin, or have the effect of defeating or substantially impairing accomplishment of the objectives of the program as respects individuals of a particular race, color, or national origin.” 28 C.F.R. § 42.104(b)(2) (emphasis added). Racially biased policing violates that principle, whether driven by conscious bigotry, subconscious stereotypes, or unjustified policies that discriminate in practice.

The Department of Justice has supported and distributed guidelines and research on best practices for avoiding and remedying racially biased policing.

The COPS Office has commissioned and released numerous documents that provide recommendations on how police departments can better address racially biased policing. In 2002, the Office released a report that recommended creating routine structures, with open communications, between police departments and community members that go beyond the dissemination of collected data. Joyce McMahon, et al., How to Correctly Collect and Analyze Racial Profiling Data: Your Reputation Depends on It!, Community Oriented Policing Services, U.S. Department of Justice, 2002, p. 9, available at: http://ric-zai-inc.com/Publications/cops-p044-pub.pdf.

The report recommended accounting for neighborhood differences and complexities by including research methods that reflect analysis at the neighborhood, area, region, or precinct level. Id. Ultimately, analytical methods must consider multiple elements, that include examples such as: “characteristics of the driving population, presence of nearby cities/states/countries (transient populations), day-time versus night-time stops, stops that are description-based (be on the lookout for), stops of those on probation and parole, and special programs such as seat-belt violations.” Id.

In 2005, the Office released another report that, while cautioning against being viewed as the official position of DOJ, recommended various ways that police departments can collect and utilize data on racially biased policing in vehicle stops. Joyce McMahon, et al., A Suggested Approach to Analyzing Racial Profiling: Sample Templates for Analyzing Car-Stop Data, Community Oriented Policing Services, U.S. Department of Justice, March 2005, available at: http://ric-zai- inc.com/Publications/cops-p071-pub.pdf. Recommendations included developing and analyzing data on how members of a city’s total population become members of the city’s driving and stopped populations; citizen characteristics, officer characteristics, stop information, and site information; minority, non-minority, and total stops based on driving as opposed to vehicle equipment; and the location-neighborhood or census tract of the police stop. Id. at 4-13. They also included breaking down the location-neighborhood or census tract data by minority population share, unemployment rate, number of officers deployed, calls for service, average income, male population share, and whether the stops’ location-neighborhood or census tract is urban or rural or business or residential. Id. at 13-14.

The report also recommended comparing predictive stop rates to actual stop rates and using supplementary information to explain the difference if any; the rates of minorities as opposed to non- minorities being stopped and searched and, if searched, whether officers found weapons, drugs, or nothing; and who is searched after a stop when looking at the variables of the citizen’s race and gender, the age of the car, the officer’s race, tenure, and unit, the reason for the stop, and the time of the stop.  Id. at 14-17.

In 2008, the COPS Office released another report, with the same precaution against being interpreted as the official position of DOJ, discussing best practices for recipients of COPS grants in addressing racially biased policing: organizational buy-in; community involvement; managing technology and planning issues; and keeping the project’s focus. Jack McDevitt et al., COPS Evaluation Brief No. 1: Promoting Cooperative Strategies to Reduce Racial Profiling, Community Oriented Policing Services, U.S. Department of Justice, 2008, p. 54, available at: http://www.cops.usdoj.gov/Publications/e08086157.pdf.

That report recommended involving lower-level officers and their representatives in all stages of development and implementation. Id. It noted that supervisors and managers should demonstrate how a program will benefit officers or, at the very least, not negatively impact them. Id. It also recommended involving police departments’ information technology staff, including offering its members an opportunity to influence policy and procedure.  Id. at 55-56.

It also noted that “agencies should try to involve the public in every stage of development and implementation, rather than at a single point, and give them real opportunities to influence the process and goals, perhaps through membership on a steering committee or task force.” Id. at 56. The report recommended taking this opportunity to establish regular contact with community groups and learn about targeted communities. Id. at 56-57. It also recommends staying focused on the objective of reducing racially biased policing and not confusing having a program as being the equivalent of successfully obtaining the objective.  Id. at 58.

In 2010, the Office released the report, Stop and Frisk: Balancing Crime Control with Community Relations, with a precaution against being interpreted as the official position of DOJ. The report recommended that police departments consider reforming their stop and frisk practices: improving understanding, among police officers as well as the public, of stop and frisk; and identifying best practices. Nancy G. La Vigne, Stop and Frisk: Balancing Crime Control with Community Relations, Community Oriented Policing Services, U.S. Department of Justice, 2010, p. 4, available at: http://ric- zai-inc.com/Publications/cops-p306-pub.pdf. The report recommended that the role of the police executive include the following:

  • Communicate clear expectations within the department, and reinforce a culture of ethical and respectful behavior.
  • Recruit officers who are service-oriented, representative of the communities they serve, and diverse in terms of their backgrounds and perspectives.
  • Communicate with and solicit input from both internal and external stakeholders.
  • Build accountability through measures such as documenting police interactions with citizens, analyzing data, and holding officers responsible for their actions.
  • Train officers in the proper procedures for conducting stops and frisks and provide opportunities for continuing education.
  • Assign officers to patrol the same neighborhoods to build relationships with the community.

The responsibilities of the individual officer, the report noted, should include the following:

  • Have sound justification before deciding to stop an individual.
  • Communicate clearly the logic behind the stop and walk the individual through the process.
  • Employ frisk and/or search activities only if legal guidelines justify doing so.
  • Treat individuals respectfully during stops.

Id. at 3.

In 2012, the Office released another report, Racial Reconciliation, Truth-Telling, and Police Legitimacy, with a similar precaution against being interpreted as the official position of DOJ. The report recommended that police departments reform their CompStat implementations in order to ensure that incentive and accountability mechanisms reduce crime and legitimize police within communities of color. Zoe Mentel, Racial Reconciliation, Truth-Telling, and Police Legitimacy, Community Oriented Policing Services, U.S. Department of Justice, 2012, p. 14, available at: http://ric-zai-inc.com/Publications/cops-p241-pub.pdf. This includes moving away from a heavy- enforcement approach that incentivizes and yields more arrests. Id. The report also cited law professor Tracey Meares from Yale University for the statement that police departments should consider the perceptions that policies, such as stop and frisk, create in communities, as opposed to simply the constitutionality of those policies.  Id. at 15-16.

The report also suggested that police departments consider, if appropriate, making an acknowledgment of the tense history between police departments and communities of color. Id. at 16- 17. It also recommended that police departments establish relationships with the community in a proactive and collaborative manner in order to have trust and confidence from the community in the event of a high-profile and emotionally-charged incident. Id. at 18.

Yet COPS and other federal funding programs do not appear to consider mechanisms for, or evidence of, Title VI compliance or adherence to these best practices in determining where scarce federal funds should be allocated.

In addition to the authority and obligation to ensure Title VI compliance, the COPS Office may conduct “evaluations to determine which programs are working, how programs may be improved, and why certain programs are more successful than others.” 2014 COPS Hiring Program (CHP) Grant Owner’s Manual at 10. In assessing how the grantee implements its grant, the Office may study the effectiveness of the funded program, project, or activities; evaluate its effectiveness of crime, victims of crime, and quality of life; and ask about challenges during the implementation, and the perspectives of residents and police officers. Id. Police departments also submit quarterly programmatic progress reports and quarterly Federal Financial Reports so that the COPS Office can “ensure the proper use of federal funds.”

Yet it is at best unclear whether police departments are being evaluated or providing reports on civil rights compliance, in particular racially biased policing, to any extent beyond the original Assurance and Certification form. Although the COPS Office may hold funds for a lack of compliance with civil rights laws, and the law requires grantees to collect data and information broadly documenting their compliance, DOJ falls short of effectively requiring or aiding its grantees to comply with comprehensive civil rights requirements or best practices. See 2014 COPS Hiring Program (CHP) Grant Owner’s Manual at 11.

DOJ can do much more to ensure civil rights compliance by strengthening its implementation of Title VI and COPS statutes and regulations. Notwithstanding a certification of compliance during an application for federal funds, a police department has very little more to do in order to prove that it upholds civil rights with the federal funds that it receives, and DOJ does very little to determine compliance on the issue of racially biased policing. By shortening the gap between law and practice, DOJ can ensure the implementation of its statutory and regulatory scheme as well as improve police and community relations in a manner that maintains public safety while respecting civil rights.

Currently, a police department that receives federal funds must, as an explicit condition of receipt, acknowledge and agree that it will not subject any person to discrimination. U.S. Department of Justice, community oriented policing services, granting monitoring standards and guidelines for all cops grants and cooperative agreements (2014), 100, available at http://tinyurl.com/odhvqj4. The police department acknowledges and agrees by signing a standard Assurance and Certification form. U.S. Department of Justice, Community Oriented Policing Services, COPS FY2014 application guide: Cops Hiring Program (CHP) (2014), 13, 42-43, available at http://tinyurl.com/lcjhada; U.S. Department of Justice, community oriented policing services, 2014 Cops Hiring Program (CHP) Grant Owner’s Manual (2014), 39-41, available at http://tinyurl.com/lfvg5qk. The Assurance and Certification form states, with a written affirmation by a Law Enforcement Executive, that the police department will not discriminate based on the protected classes pursuant to Title VI, and that it will ensure meaningful access to persons with limited English proficiency pursuant to Title VI guidelines. 2014 COPS Hiring Program (CHP) Grant Owner’s Manual at 39-40. Unfortunately, this is generally where the affirmative obligation to prohibit racially biased policing with federal funds and federally funded activities begins and ends. While a police department signs this Assurance and Certification form during its application, it does very little to establish its compliance anytime afterwards.

The Department of Justice and Other Federal Entities that Fund Police Departments Should Require Specific, Demonstrable Evidence of Proactive Efforts to Prevent and Address Racially Biased Policing.

Executive Order 13684 pursues policing practices that promote effective crime reduction while building public trust and fostering strong, collaborative relationships between local law enforcement and the communities they protect. In order to make that promise a reality, DOJ must go beyond passive affirmations and require concrete, demonstrable evidence of civil rights compliance before, and as a condition on the receipt of federal funds, as well as during the period of funded activity. Moreover, effective incorporation of basic practices such as collecting and reporting data on police stops disaggregated by race and ethnicity, implicit bias training, and accountability for all instances of biased policing should be prerequisites for initial and renewed receipt of federal funds.

Innovative Anti-Bias Practices Should be a Competitive Advantage in Receiving COPS and Other Funds.

In addition to requiring demonstrated compliance with the basic requirements of Title VI, the COPS program and other federal funding entities should make innovative best practices for preventing and addressing biased policing a “plus” factor in competitive grant awards. Practices recommended in reports commissioned by the COPS Office and related entities should receive particular priority, and DOJ should continue to commission and update these recommendations.

Conclusion

Thank you once again for making effective and equitable community policing a priority, and for considering The Opportunity Agenda’s recommendations. We hope to see these and other proactive solutions in the Commission’s final report to the President.

Immigration Policy Solutions: Due Process and Fair Treatment Under the Law

Many Americans are frustrated with our immigration policies. But research and experience show that it’s not enough to focus only on the problems with our current policies. We also need to paint a picture of what the country would look like with workable, commonsense policies in place. This document identifies solutions across a spectrum of issues relating to immigrants and immigration, reflecting the importance of addressing the problems with our immigration policies as broadly as possible.

Topline Message:

Americans understand that the right to due process under the law is a cornerstone of our commitment to freedom and fairness. Ensuring that every person in the United States, regardless of their immigration status, is guaranteed equal treatment and due process means that an individual should be able to appeal an unfair administrative decision and to receive the same treatment under both immigration and criminal laws. It also means that the police can only stop a person based on evidence or reasonable suspicion of wrongdoing, not racial or ethnic stereotypes.

Solutions:

Restore judicial discretion and review

What DHS should do:

  • Restore Section 212(c) of the Immigration and Nationality Act (INA), which enabled certain permanent residents who had been convicted of a crime to avoid removal, to provide for discretionary relief in removal proceedings.
  • Create a right to counsel in all stages of any immigration proceedings.

What state and federal courts should do:

  • Ensure the right of individuals in proceedings to present evidence of their contributions to their community and their ties to this country and the right to have a translator present.
  • Apply the Padilla decision more broadly in post-conviction proceedings to ensure the right to competent counsel. (In Padilla, the U.S. Supreme Court held that criminal defendants have a right to advice from counsel about the potential immigration consequences of their convictions and that failure to provide such advice may constitute ineffective assistance of counsel, in violation of the Sixth Amendment.)
  • Despite the U.S. Supreme Court’s decision in Chaidez that Padilla does not apply retroactively to those convicted prior to March 31, 2010, state courts can and should apply their own state constitutional right to effective assistance of counsel or broader retroactivity principles to grant relief.

Apply the concept of due process to detention

What Congress should do:

  • Restore the federal courts’ authority to review removal orders and other administrative actions.
  • Eliminate mandatory detention for immigrants with a criminal conviction

What DHS should do:

  • Limit the issuance of ICE detainers and the transfer of detainees.
  • Improve conditions and end abuses at detention centers.

What DOJ should do:

  • Implement humane practices in detention by explicitly applying implementation of the regulations issued under the Prison Rape Elimination Act of 2003 to immigration detention facilities.

Resolve the inconsistency between the definitions of “conviction” and “aggravated felony” under immigration law and criminal law definitions

What Congress should do:

  • Change the definitions of “conviction” and “aggravated felony” in the immigration law to be consistent with current federal and state criminal laws.

End racial profiling

What Congress should do:

  • Enact the End Racial Profiling Act, which would ban profiling based on race, religion, ethnicity, national origin, and gender at the federal, state, and local levels.
  • Eliminate DHS programs that result in racial profiling, e.g., “Secure Communities,” 287(g), and the Criminal Alien Program.

Talking Points:

  • In this country, we believe that everyone has rights, regardless of what you look like or where you come from. Central to these rights in our justice system is due process—a day in court, access to lawyers. When we allow some states or law enforcement policies to deny due process to anyone here, we allow them to threaten our core values.
  • Our justice system doesn’t work unless we treat everyone equally, providing due process. When we restrict anyone’s rights, it hurts us all because that’s not the kind of country we want to be.

Reforming HUD’s Regulations to Affirmatively Further Fair Housing

Acknowledgements

We wish to acknowledge the assistance that a wide range of fair housing experts, researchers, and former federal officials provided in the preparation of this report. We are particularly grateful for the input of Roger Bearden, Marianne Engelman Lado, Sara Pratt, Florence Wagman Roisman, and Philip Tegeler.

Table of Contents

Executive Summary
Summary of Recommendations

  1. The AFFH Requirement and the Analysis of Impediments Process
  2. Current AFFH Regulations

II.  Problems with Current Enforcement

  1. Problems with the AI Process for Jurisdiction-Wide Compliance
  2. Failure to Further Fair Housing in Specific Programs and Activities
  3. Lack of Integration with other Equal Opportunity Provisions

III.  Recommendations to Improve the AFFH Regulations

  1. Reforming  the Jurisdiction-Wide AI Process
  2. Clear  Fair Housing Metrics
  3. Data Collection Guidelines
  4. Improved Public Input Mechanisms
  5. Accountability Measures
  6. Ensuring Fair Housing Compliance in Individual Federally Funded Projects
  7. Elements of the Opportunity Impact Statement

IV.  Improving Enforcement and Funding Decisions
V. Incorporating Examples
Appendix: Proposed Regulations

Executive Summary

We are pleased to submit recommendations toward the revitalization of HUD’s duty to administer its programs and activities “in a manner affirmatively to further the policies of [the Fair Housing Act].”1 This responsibility is crucial to the Department’s mission “to increase homeownership, support community development and increase access to affordable housing free from discrimination,”2 and to our nation’s pursuit of greater and more equal opportunity for all.

The economic and social benefits of fair housing and stable, integrated communities for people of all backgrounds are well documented.3 And the principle that federal funds and subsidies administered by the Executive Branch are not to be used for discriminatory purposes is a longstanding and well- accepted corollary to the constitutional guarantee of equal protection under the laws.4

Accordingly, the duty to “affirmatively further fair housing” (AFFH) applies not only to programs administered directly by HUD, but also to public and private housing and urban development activities receiving federal funding from HUD or any other federal agency.5 With respect to these fund recipients, moreover, the AFFH requirement fits within a broader framework of existing regulations prohibiting all forms of discrimination in federally funded programs and activities.6 As such, the AFFH mandate has the potential to trafnsform America’s communities over time and to redress our nation’s troubling legacy of housing discrimination and residential segregation, often at the hands of government.7

Yet, despite some important advances over the years, research and experience show that the promise of the AFFH duty has never been fully realized. Existing regulations do not provide adequate specificity, procedures, or accountability measures, especially as they relate to federal fund recipients. Enforcement over the years has been largely passive and, at times, non-existent. And the AFFH obligation has never been adequately integrated with other equal opportunity protections governing federally funded programs.

For these reasons, we are particularly pleased that the Department is engaged in reformulating the AFFH regulations and their enforcement. We believe that each of the shortcomings described above can be overcome through this process, and that federal funding can contribute to the kind of fair and equitable housing that benefits our entire society.

The recommendations that follow focus on HUD’s responsibilities relating to recipients of federal funds engaged in housing and urban development activities. Although we do not address in this report HUD’s direct administration of activities such as the Section 8 voucher program, we support the recommendations made in this regard by the Leadership Conference on Civil Rights and other fair housing and public interest groups.8

Summary of Recommendations

Based on a large body of research and experience, we recommend the following changes to HUD’s AFFH regulations and implementation, discussed in greater detail herein, as they relate to federally funded activities:

  1. That the Department monitor and enforce grantees’ jurisdiction-wide affirmative fair housing obligations through a revised Analysis of Impediments process that includes: (a) clearly stated metrics for the assessment of fair housing impediments and actions to overcome them; (b) explicit guidelines for data collection and analysis by HUD and its grantees; (c) modernized mechanisms for public input; and (d) a meaningful system of pre- and post-award review.
  2. That, in addition to the jurisdiction-wide AI process, the Department require fund recipients to conduct and submit periodic assessments of the fair housing and other federally-protected equal opportunity impacts of specific programs and activities undertaken with federal funds.
  3. That both jurisdiction-wide and program-specific processes incorporate the consideration of indicators of housing opportunity supported by established research and experience; and
  4. That the Department complement submission requirements and technical assistance to fund recipients with a rigorous system of periodic, unannounced audits of a subset of applicants and recipients to be chosen through random selection and other factors.

This report describes in further detail each of these recommendations, as well as the considerations behind them and suggested implementation methods. We look forward to working with the Department, as well as with fund recipients and civil society partners, to make these and other changes a reality.

I.          The AFFH Requirement and the Analysis of Impediments Process
Section 3608(e)(5) of the Fair Housing Act requires HUD to “administer the programs and activities relating to housing and urban development in a manner affirmatively to further the policies of [the Fair Housing Act].”9 The Act seeks “to provide, within constitutional limitations, for fair housing throughout the United States”;10 to “remove the walls of discrimination which enclose minority groups”;11 and to foster “truly integrated and balanced living patterns.”12 In other words, the Fair Housing Act requires HUD to proactively promote non-discrimination, residential integration, and equal access to the benefits of housing.

Section 3608 imposes an “affirmative” obligation, requiring HUD to do something “more than simply refrain from discriminating . . . or from purposely aiding discrimination by others.”13 To the contrary, “[a]ction must be taken to fulfill, as much as possible, the goal of open, integrated residential housing patterns and to prevent the increase of segregation[.]”14 Furthermore, HUD has an obligation to act regionally where necessary to further the goal of integrated housing.15

The mandatory provisions of Section 3608 apply not only to HUD, but also to its grantees.16 Thus, HUD will have violated Section 3608(d)(5) when it is “aware of a grantee’s discriminatory practices and has made no effort to force it into compliance with the Fair Housing Act by cutting off existing federal financial assistance to the agency in question.”17

And the requirement applies beyond HUD-funded activities as well, extending to all “programs and activities relating to housing and urban development” that are administered within the purview of Federal regulatory or supervisory authority.18 These programs and activities include those “operated, administered, or undertaken by the Federal Government; grants; loans; contracts; insurance; guarantees; and Federal supervision or exercise of regulatory responsibility (including regulatory or supervisory authority over financial institutions).”19 In other words, HUD’s regulations should set out the AFFH obligations applicable to all federal funding entities, including but not limited to HUD itself, as well as their respective grantees.

Executive Order 12892, signed by President Clinton in 1994, provides that “the Secretary of Housing and Urban Development shall, to the extent permitted by law . . . promulgate regulations . . . that shall,” among other things:

(3) describe the responsibilities and obligations of executive agencies in ensuring that
programs and activities are administered and executed in a manner that furthers fair
housing; (4) describe the responsibilities and obligations of applicants, participants, and
other persons and entities involved in housing and urban development programs and
activities affirmatively to further the goal of fair housing; and (5) describe a method to
identify impediments in programs or activities that restrict fair housing choice and
implement incentives that will maximize the achievement of practices that affirmatively further fair housing.20

a.         Current AFFH Regulations
In contrast to that robust mandate, current HUD regulations implementing the AFFH duty in the federal funding context provide only a skeletal outline of steps necessary to uphold the duty. For example, HUD regulations governing Community Development Block Grants, 24 C.F.R. Part 570, provide that:

The [Housing and Community Development Act of 1974] requires the state to certify to
the satisfaction of HUD that it will affirmatively further fair housing.   The act also
requires each unit of general local government to certify that it will affirmatively further
fair housing. The certification that the State will affirmatively further fair housing shall
specifically require the State to assume the responsibility of fair housing planning by (1)
Conducting an analysis to identify impediments to fair housing choice within the State;
(2) Taking appropriate actions to overcome   the effects of any impediments identified
through that analysis; (3) Maintaining records reflecting the analysis and actions in this
regard; and (4) Assuring that units of local government funded by the State comply with
their certifications to affirmatively further fair housing.21

Similarly, 24 C.F.R. Part 91, governing fund recipients’ Consolidated Plans (“Consolidated Submissions for Community Planning and Development Programs”), merely repeats the AFFH certification requirement. For instance, 24 C.F.R. § 91.225(a) provides that entitlement communities receiving funds under specified Community Planning and Development programs must certify “satisfactory to HUD,” that they “will affirmatively further fair housing, which means that [they] will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard.”22

Under current practice, the Analysis of Impediments (AI) is not submitted to or approved by HUD, although Consolidated Plan guidelines indicate that each jurisdiction “should maintain its AI and update the AI annually where necessary.”23 In other words, HUD’s role in the current AI process is a largely passive one that relies on the commitment and proficiency of federal fund recipients. Nor do the regulations provide sufficient guidance as to the minimally necessary indicators or actions that an AI should contain.

The Fair Housing Planning Guide, last published by HUD in 1996 and available online,  24 provides more detailed guidance and recommendations for fulfilling the fair housing requirements of the Consolidated Plan and CDBG regulations. The Consolidated Plan process is driven in large part by individual jurisdictions, which must themselves “take and/or describe specific actions and initiatives relevant to the preparation of the consolidated plan,”  25 based on consultation and coordination with state and local agencies, groups, and organizations working within the particular jurisdiction. To provide guidance to individual jurisdictions, the Planning Guide sets forth a series of questions and considerations that the jurisdictions should take into account in developing their Consolidated Plan, and concerning, among others: collaboration and partnership in developing the plan; leadership of the process; citizen participation as part of the plan development; the analyses necessary to assess housing and homelessness needs and the relevant housing market; and a strategic plan for the jurisdiction going forward.  26 The Planning Guide describes HUD’s review of the Consolidated Plan by stating, “the Department will carefully review the performance indicators under the Consolidated Plan to measure the jurisdiction’s progress toward meeting its goals,” and that “HUD is committed to working with communities to make the process productive and the results real.”  27

II.         Problems with Current Enforcement

While the Fair Housing Planning Guide provides useful information, there is a significant and detrimental gap between the highly general requirements of the current AFFH regulations and the highly specific and often voluntary recommendations in the Planning Guide and related documents. Concretizing these elements as regulations rather than solely in administrative guides or memo- randa is crucial, because of the legal authority that regulations carry within and outside the Federal government, as well as the deference that courts afford agency regulations that construe statutory provisions within their domain.  28 Importantly, moreover, the current regulations do not fulfill the Secretary’s obligation to “promulgate regulations” that “describe the responsibilities and obligations of applicants, participants, and other persons and entities”  29 or that “describe a method to identify impediments . . . and implement incentives that will maximize the achievement of practices that affirmatively further fair housing.”  30 More broadly, the current regulations fail to fulfill the letter or spirit of the Fair Housing Act.

In addition to the facial shortcomings of the current AFFH regulations, experience in the field has made clear that these existing mechanisms, while necessary, have been insufficient in practice to further fair housing.31 In particular, (1) the jurisdiction-wide AI process, as described in current regulations, fails to prescribe specific criteria and metrics for assessing and remedying impediments to fair housing; (2) the current AI and Consolidated Plan system does not facilitate monitoring of, or compliance with, AFFH or other Equal Opportunity requirements in specific federally-funded projects; (3) the factors considered by the current process are overly narrow to assess and promote fair housing; and (4) there is a lack of credible or effective pre- or post-award review. We describe these problems in somewhat greater detail below.

b.         Problems with the AI Process for  Jurisdiction-Wide Compliance
A range of housing experts, civil rights groups, and former HUD officials have documented the inadequacy of the current AI process. For example, according to testimony by Dr. Jill Khadduri, who “[d]uring the final 17 of [her] 26 years at HUD . . . was Director of the Division of Policy Development,”32 instead of evaluating a grantee’s AI to determine whether its project or program should have been funded, HUD field staff “simply look[] for the certification that the jurisdiction ha[d] completed such an analysis at some time, which may [have been] several years earlier.”33 It was “very rare,” she testified, that a prospective grantee’s Consolidated Plan (which certifies that the AI has been completed, actions are being taken to overcome identified impediments, and records are maintained reflecting the analysis and action) was “disapproved at the field office staff level and even rarer that the disapproval [wa]s sustained by higher-level HUD decision-makers and a jurisdiction [wa]s denied its funding allocations.” 34

Similarly, a bipartisan fair housing panel chaired by former HUD Secretaries Cisneros and Kemp found that the AI process is ineffective, due largely to the absence of specific regulations regarding the necessary elements of an AI, or the criteria for approval:

HUD does not require that AIs be reviewed or approved . . . as a condition of funding
and there are no HUD regulations that identify what must be included in an AI, not even
a requirement that efforts must be made to reduce existing segregation, consider
residential living patterns in the placement of new housing, or promote fair housing
choice or inclusivity. 35

The same report noted that “HUD requires no evidence that anything is actually being done as a condition of funding, and it does not take adverse action if jurisdictions are directly involved in discriminatory action or fail to affirmatively further fair housing.”36

Similarly, the current mechanisms provide insufficient data for monitoring, compliance, or enforcement. Collecting and analyzing data regarding characteristics of Americans benefited or burdened by HUD programs is crucial to protecting and furthering fair housing. Accordingly, the Fair Housing Act provides that the Secretary shall:

annually report to the Congress, and make available to the public, data on the race,
color, religion, sex, national origin, age, handicap, and family characteristics of persons
and households who are applicants for, participants in, or beneficiaries or potential
beneficiaries of, programs administered by the Department to the extent such
characteristics are within the coverage of the provisions of law and Executive orders
referred to in subsection (f) of this section which apply to such programs (and in order to
develop the data to be included and made available to the public under this subsection,
the Secretary shall, without regard to any other provision of law, collect such information
relating to those characteristics as the Secretary determines to be necessary or appropriate).  37

Yet, the current AFFH system fails reliably to collect or analyze the data necessary to fulfill the Department’s responsibility. As a result, even potential individual complainants who suspect a broader pattern of noncompliance are often frustrated by a lack of reliable information.

In practice, moreover, jurisdictions have not uniformly analyzed demographic housing patterns, or identified significant impediments relating to race and other characteristics covered by the Fair Housing Act. As you know, Westchester County recently settled a suit alleging that, in the face of strong evidence of racial segregation within the county, Westchester repeatedly certified that it was affirmatively furthering fair housing using the existing AI process.38Although Westchester submitted periodic AIs and continued to receive HUD funding, plaintiffs documented that the county’s AIs failed to mention race discrimination or racial segregation, and included “no analysis of whether [those dynamics] might operate to diminish fair housing choice.”39 Using an analysis which a federal court later invalidated,40 Westchester County argued that income was a “better proxy for determining need than race when distributing housing funds,” and that race was “not among the most challenging impediments” to fair housing in Westchester.41

Experience shows that the Westchester County case is just the tip of the iceberg regarding non-compliance and the failure of the AI process to hold grantees accountable.

More robust and modernized public input mechanisms are also needed. In the case of Westchester County, plaintiffs provided evidence that the historically segregative impact of the county’s hous- ing policies was furthered in part because “Westchester refused to identify or analyze community resistance to integration on the basis of race and national origin as an impediment.”42 If HUD had enabled, or Westchester County had allowed, fair housing advocates or community members within the region to submit public comments or research specifically addressing the resistance of particular communities within the county to integration, the county would likely have been required publicly to take those considerations into account and work against them in its housing policy, in order to receive approval of its AI.

a.         Failure to Further Fair Housing in Specific Programs and Activities
Historically, the Department has applied the AFFH requirement only at a generic, jurisdiction-wide level, inquiring what a putative fund recipient plans to do to advance fair housing across its jurisdiction, and detached from any specific, federally-funded project.43While this is an important inquiry, it means that even close scrutiny of a grantee’s AI is unlikely to spot plans or actions by the grantee that could, nonetheless, hamper fair housing or affirmatively discriminate, in violation of the AFFH requirement.

For example, a jurisdiction’s AI might identify discrimination by private real estate agents as a major impediment to fair housing, and propose specific action to address that impediment—e.g., through   law enforcement and educational efforts. However, the same jurisdiction might simultaneously pursue a pattern of siting federally-subsidized affordable housing in a segregative manner and in locations that are physically distant from employment, schools, and other opportunities.

The jurisdiction-wide AI process, even with the improvements that we recommend, will be insufficient to ensure that federal dollars further fair housing. Nor is relying solely on individual complaints sufficient to further fair housing at this important level.

While the AI and Consolidated Plan system, at best, ensures that entities receiving federal funds are doing something to address some impediments to fair housing, the text of the Fair Housing Act commands that the Secretary “administer the programs and activities relating to housing and urban development in a manner affirmatively to further the policies of this title.”  44

The jurisdiction-wide AI process must be complemented by a more specific program-based obliga- tion. While individually policing every federally subsidized housing activity may not be feasible, there is a need for an “institutionalized method” to further fair housing in these programs and activities.  45

c.         Lack of Integration with other Equal Opportunity Provisions
In addition to inadequately implementing the AFFH requirement, the current approach disconnects the AFFH inquiry from the other equal opportunity protections that HUD must also enforce in federally-funded projects, such as Title VI of the Civil Rights Act of 1964, which prohibits racial discrimination, whether intentional or in effect, in any federally funded program or activity.46 For example, HUD regulations, 24 C.F.R. Part 1, separately detail the equal opportunity obligations of federal fund recipients under Title VI, and require reporting on compliance:

Each recipient shall keep such records and submit to the responsible Department
official or his designee timely, complete, and accurate compliance reports at such times,
and in such form and containing such information, as the responsible Department official
or his designee may determine to be necessary to enable him to ascertain whether the
recipient has complied or is complying with this part 1. In general, recipients should have
available for the department racial and ethnic data showing the extent to which members
of minority groups are beneficiaries of federally assisted programs.  47

Additional HUD regulations govern non-discrimination on the basis of gender in education pro- grams or activities receiving federal funds (Part 3); equal employment opportunity without regard to race, color, religion, sex, national origin, age or disability (Part 7); nondiscrimination based on disability (Parts 8 and 9); and small, minority, and women’s business enterprises (Part 85).

The AFFH requirement is qualitatively different from most of these other obligations, because it is an affirmative duty to further fair housing, rather than a “negative” duty to refrain from discriminating intentionally or in practice. Nonetheless, in many cases the data collection, reporting, and nondiscrimination obligations that these various provisions impose on HUD and its grantees are similar or overlapping. In the name of efficient and effective equal opportunity enforcement, and to streamline grantees’ reporting obligations, the Department’s implementation of the AFFH duty should be coordinated with the enforcement of other equal opportunity obligations attached to federal funds, wherever possible.

III.        Recommendations to Improve the AFFH Regulations

In order to address the serious shortcomings of the current AFFH regulations as they relate to federally funded activities, we recommend:

  1. That the Department monitor and enforce grantees’ jurisdiction-wide affirmative fair housing obligations through a revised Analysis of Impediments process that includes (a) clearly stated metrics for the assessment of fair housing impediments and actions to overcome them; (b) explicit guidelines for data collection and analysis by HUD and its grantees; (c) modernized mechanisms for public input; and (d) a meaningful system of pre- and post-award review.
  2. That, in addition to the jurisdiction-wide AI process, the Department require fund recipients   to conduct and submit periodic assessments of the fair housing and other federally-protected equal opportunity impacts of specific programs and activities undertaken with federal funds.
  3. That both jurisdiction-wide and program-specific processes incorporate the consideration of indicators of housing opportunity supported by established research and experience; and
  4. That the Department complement submission requirements and technical assistance to fund recipients with a rigorous system of periodic, unannounced audits of a subset of applicants and recipients to be chosen through random selection and other factors.

We discuss these elements in greater detail below.

a.         Reforming the Jurisdiction-Wide AI Process
With respect to the current system of jurisdiction-wide analysis of impediments and remedial action, we propose clear and strengthened metrics, data collection, public input mechanisms, and account- ability measures.

          i.          Clear Fair Housing Metrics

Definition of Impediments

In order effectively to fulfill the AFFH duty, HUD regulations should expressly provide that potential impediments to fair housing that should be assessed include, but are not limited to:

  • Any public or private actions, omissions, policies, or decisions which have the purpose or  effect of restricting housing choices or the availability of housing choices on the basis of race, color, religion, sex, disability, familial status, or national  origin.48
  • Any public or private actions, omissions, policies, or decisions which have the purpose or effect of segregating or concentrating residents based on race, color, religion, disability, or national origin.49
  • Any public or private actions, omissions, policies, or decisions which have the purpose or effect of limiting access to opportunities associated with housing on the basis of race, color, religion, sex, disability, familial status, or national origin.50

This regulatory language would clarify, based on established law, that impediments to fair housing (a) may arise from private as well as public sources; (b) may result from actions and failures to act, as well as from official policies; (c) may stem from intentional discrimination or from facially neutral actions that deny fair housing in practice; and (d) can entail segregative forces as well as exclusionary or discriminatory ones.

The proposed criteria also make clear that impediments to fair housing may take the form of limited access to opportunities associated with housing—such as a municipality’s pattern of siting low-income, disproportionately minority housing in locations distant from education, employment, health care, or other opportunities associated with viable residential housing.

Action to Overcome Impediments

The regulations should provide that the grantee’s proposed actions to overcome the effects of any impediments identified through its analysis must promise, realistically and meaningfully, to reduce those effects and affirmatively to further fair housing. In other words, there must be a nexus between the identified impediments and the proposed activities, and the proposed remedial efforts must demonstrate, objectively and to the Department’s satisfaction, that the impediments are likely to be reduced as a result of the proposed  activities.

In addition, the regulations should provide that federal funds must not be used in a manner that will exacerbate or perpetuate impediments to fair housing, whether identified in the Analysis of Impediments or otherwise. And they should make clear that post-award analyses and status reports must document the implementation of proposed and other actions to address impediments to fair housing and provide sufficient data and information to document the effectiveness and impact of those actions.

ii.         Data Collection Guidelines
Collection of relevant, accurate data is crucial to the furtherance of fair housing. Accordingly, revised HUD regulations should provide that jurisdictions must include in their analyses of impediments the collection and reporting of relevant demographic patterns and concentrations of racial, ethnic, religious, linguistic, or income groups, as well as people with disabilities, as reflected in federal, state, and other reliable sources of data and information. The Analysis of Impediments must apply that demographic data, along with other relevant information, in assessing any impediments to fair housing as defined above. Where possible, the analyses should use GIS or other established mapping systems to provide a graphical representation of residential patterns.  51

The AFFH regulations, or an associated guidance, should further define segregative and integrative housing impacts in particular by employing a specific definition of minority concentration, such as whether a census tract is occupied by a population that is more than 12% above the percentage of that population in the jurisdiction and metropolitan area as a whole.  52 The Equal Employment Opportunity Commission has used a similar approach in the fair employment context, advising agency officials and employers that “A selection rate for any race, sex, or ethnic group which is less than four-fifths (4/5) (or eighty percent) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded by Federal enforcement agencies as evidence of adverse impact.”  53

Collecting data on race and ethnicity, and specifically identifying areas of racial and ethnic segregation within metropolitan areas, can typically be accomplished using existing   sources. Following the decennial censuses of 1990 and 2000, HUD had the Census Bureau produce special extracts of census data on the housing conditions of households by racial and ethnic group and by income categories that follow HUD’s definitions (i.e., income categories are defined relative to local median incomes).  54This data is available at the census tract level for each jurisdiction administering the HOME and Community Development Block Grant (CDBG) programs.  55

Collecting data on disability can also be accomplished by relying on the data HUD currently collects on disability at the household level for public housing and Section 8 residents, as well as from census sources. An assessment about the need for accessible units will require further data that indicates the current need for affordable housing by people with disabilities, the current number of accessible units, and the number of proposed accessible units. HUD field staff already have the authority to require higher percentages of units for people with disabilities in new construction.56

HUD also has household-level administrative data sets for the public housing, voucher, and Section 8 project-based assisted housing programs that include information on the location of units and on the income and racial characteristics of the households assisted in each unit.57 Particular considerations of any racially segregative impact must be made in tandem with considerations of segregation based on physical or mental disability, familial status, and other factors, which have similarly influenced the landscape of housing policies.  58

In order to facilitate compliance with this requirement, we recommend that HUD provide data and mapping tools through an updated web portal designed to serve fund recipients, applicants, and other interested parties. The revised site could be planned, for example, to coincide with the release of 2010 Census figures.

iii.        Improved Public Input Mechanisms
We largely endorse the existing provisions, 24 C.F.R. § 91.105, setting out the requirements for citizen participation plans in the Consolidated Plan process, and recommend that they be uniformly applied and enforced. We recommend adding, however, that in addition to the methods set out at § 91.105, jurisdictions make preliminary assessments of impediments and proposed actions, including maps where possible, available to the public for comment through a user-friendly online interface.

iv.        Accountability Measures
A crucial deficiency in the current AI system is that HUD staff does not routinely review the content of AIs to ensure their accuracy, substance, or likelihood of success. Accordingly, in addition to our recommendation that the regulations designate specific criteria, data requirements, and include actions designed to reduce identified impediments, we recommend a mandate that AIs and updates be filed with the agency and, to the greatest extent possible, that HUD staff review the AI submission through documentary and onsite investigation before the approval or continuation of federal funding.

We recognize that current HUD staffing may be inadequate for the pre-approval review of all AI submissions. Accordingly, in addition to seeking appropriations for expanded staff, we recommend that HUD use a system of unannounced audits of select AIs and updates at pre- and post-approval stages, with sufficient frequency to create needed incentives for full  compliance.

Here, consistent with the recommendations of the Anti-Discrimination  Center,  59 we recommend that HUD develop a rigorous AFFH auditing program based on a modified Internal Revenue Service model. The IRS engages in three basic types of enforcement: (1) focusing on areas of high yield, both for specific impact and general deterrence against a particular type of evasion or taxpayer profile;(2) responding to information about non-compliance; and (3) conducting random audits.60 Each category fosters general deterrence; the last is noteworthy and effective because of its unannounced and unpredictable nature.61 That is, deterrence is not enhanced by giving taxpayers a road map of what kinds of evasion are unlikely to be pursued, but rather by doing enough facially random enforcement work across the board so that all taxpayers understand that noncompliance places them at risk.  62

Similarly, HUD should conduct a significant number of random, unannounced audits and, in addition, target for scrutiny jurisdictions that have: (a) significant levels of demographic segregation or exclusivity; (b) significant barriers to fair housing choice (like exclusionary zoning or a lack of affordable housing); and/or (c) a history of fair housing complaints or noncompliance.  63

Audits, and all AFFH investigations, must combine documentary review with onsite visits to verify facts on the ground, speak with affected communities, and provide visible accountability. In some instances, fair housing testers will also be appropriate—for instance, to determine whether grantees are distributing housing services and information fairly.

Additionally, in the context of CDBG funds, the current rule stating that the Consolidated Plan, within which the initial AI will be provided, is “deemed approved 45 days after HUD received the plan, unless before that date HUD has notified the jurisdiction that the plan is disproved,”64 should  be explicitly revised to authorize a delay in notification in order to request and receive additional information or otherwise ensure compliance.

Post-Approval investigations should, in addition, review and attempt to verify the implementation of actions set out in the AI for effectiveness, as well as actions left out of initial or subsequent AIs. The regulations should also disfavor projects that may affirmatively further fair housing in one narrow respect, while having a disparate or segregative effect in another respect. For example, a proposal for mixed income housing that would be integrated in its predicted  occupancy, but  would overwhelmingly displace minority homeowners and renters, should be  disfavored for funding.

The revised AI requirement should attach at as early a stage as possible, so that information regarding fair housing impact may inform the design, prioritization, and selection of projects, instead of serving merely as a final hurdle to be overcome.

Finally, whether through pre- or post-approval review, where data comparisons or other information in an AI shows either a failure to meet affirmative obligations or a prima facie case of intentional or disparate impact discrimination, funding must be denied or halted pending further investigation and, where appropriate, referral for enforcement action.

At the same time, the regulations should make clear that approval of an AI, Consolidated plan, or funding by the Department does not constitute an administrative determination of compliance with substantive fair housing obligations.

In sum, we believe that incorporating these recommendations explicitly into HUD’s AFFH regulations for jurisdiction-wide compliance will rapidly lead to more effective and uniform furtherance of fair housing in the Department’s activities.

b.         Ensuring Fair Housing Compliance in Individual  Federally-Funded Projects
In addition to reforming the jurisdiction-wide AI process, proper enforcement of the AFFH duty, as well as coordination with other equal opportunity enforcement obligations, requires attention to the particular uses to which federal funds are directed. Specifically, we recommend that an Opportunity Impact Statement (OIS) requirement be used to ensure that specific federally funded programs or activities comply with the AFFH duty and all other applicable equal opportunity requirements.

The OIS mechanism that we set forth in this memorandum would offer a uniform, “institutionalized method”  65 to monitor, analyze, and ensure compliance with the AFFH obligation, while also facilitating compliance with other applicable equal opportunity laws.  66 It would utilize a framework that is widely used for assessing intended and unintended effects on opportunity in other areas of public policy.  67 And, once implemented, it would streamline review and ease the administrative burden on Department staff and fund recipients by consolidating diverse statutory and regulatory obligations.

Accordingly, we  recommend  that  HUD  promulgate  additional  regulations  requiring  preparation and submission of Opportunity Impact Statements by putative and actual fund recipients, to ensure compliance with AFFH and other equal opportunity requirements in the implementation of specific housing and development projects receiving federal funds. Until such time as pre-approval review    of all submissions is feasible, we recommend documentary and onsite audits of selected OIS submissions on a pre-approval and post-approval basis. The random and targeted audit system that we recommend for jurisdiction-wide compliance reviews.

i.          Elements of the Opportunity Impact Statement
With respect to specific proposed or actual federally-funded programs or activities, the OIS would provide sufficient information to assess compliance with all applicable federal equal opportunity obligations. It would address, at least, the following questions:

  1. The statistical relationship between the relevant demographics (i.e., statutorily covered char- acteristics) of the recipient jurisdiction as a whole, including relevant metropolitan areas,69 and those of people and neighborhoods to be impacted positively or negatively by the federally-funded project, in terms of affordable and accessible housing, displacement or homelessness, employment, environmental hazards, contracting opportunities, and physical access to community services and amenities.
  2. Projected impact on residential segregation or concentration on the basis of covered charac- teristics in the recipient jurisdiction and regionally.
  3. Availability of affordable housing opportunities for populations facing the greatest barriers to social mobility (i.e., people under 200% of the federal poverty level), as well as levels of foreclosure.
  4. Likelihood that people with disabilities facing the greatest barriers to community integration (e.g., individuals living in overly institutionalized settings) have greater access to community- based housing opportunities.
  5. Projected creation and equitable access to, where relevant, employment, business enterprise, education, and health care opportunities as a result of the federally-funded project.
  6. Alternative plans and approaches proposed or considered, with particular attention to any alternatives projected to have a less disparate impact.
  7. Mechanisms to facilitate public knowledge of, and participation in, decision making, including for people with disabilities and limited English proficiency, and particularly relating to information about fair housing and equal opportunity impacts.
  8. Provisions to prevent and redress racial, sexual, or other harassment within federally-funded programs and institutions.  70
  9. GIS mapping, where practicable, graphically representing the demographic impact of programs or activities in relation to the jurisdiction and region as a whole.
  10. Affirmative policies, plans and activities to promote fair, integrated housing, to counteract any discriminatory effects identified by the above information, and to ensure conformance with the Uniform Relocation Act.  71

Each of the above factors relates to an existing obligation for federal fund recipients, including either explicit or implicit data collection and record-keeping requirements. And other agencies have, at times, pursued enforcement approaches that model those described here. Most recently, in fulfilling its non-discrimination obligations in the administration of federal funds under the American Recovery and Reinvestment Act of 2009, the Federal Transit Administration recently denied funding for a project of the Bay Area Rapid Transit (BART) District after a review of relevant demographic and other information revealed that the project would have be discriminatory in practice based on race. The FTA sought additional information from BART, elicited public input, and attempted to negotiate a less discriminatory alternative. When that failed, on February 12th of this year, the agency denied federal funding for the project.  72

Numerous other models exist in the federal system for the kind of data collection and pre-award review described here. For example:

  • Executive Order 12898 requires that “each Federal agency, whenever practicable and appropriate, shall collect, maintain and analyze information on the race, national origin, income level, and other readily accessible and appropriate information for areas surrounding facilities or sites expected to have substantial environmental, human health, or economic effect on the surrounding populations, when such facilities or sites become the subject of a substantial Federal environmental administrative or judicial action. Such information shall be made available to the public unless prohibited by law . . . .”73
  • All employers with 100 or more employees must file with the Equal Employment Opportunity Commission an Employee Information Report (EEO-1), detailing the racial, ethnic, and gender demographics of its workforce, disaggregated by job category, pursuant to Section 709(c), Title VII, of the Civil Rights Act of 1964; and
  • Pursuant to Section 5 of the Voting Rights Act of 1965,74 covered jurisdictions must submit all voting changes to the Attorney General—through the Civil Rights Division of the U.S. Department of Justice—or a three-judge court, to determine if they have a discriminatory purpose or effect, and are therefore legally void.75

These forms of administrative review have been administered for years or decades without any undue burden to fund applicants or agency resources. In addition, the Opportunity Impact Statement process that we propose will bring greater uniformity and predictability to AFFH compliance, while facilitating better-informed funding decisions by the agency.76

IV.        Improving Enforcement and Funding Decisions

Again, regulatory accountability is crucial to the success of these reforms. Thus, where data comparisons or other information in an OIS shows either a failure to meet affirmative obligations or a prima facie case of intentional or disparate impact discrimination, funding must be denied or halted pending further investigation and, where appropriate, referral for enforcement action.

Again, the FTA’s recent denial of funds to BART—after documentary review, notice and public comment, a request for further information, and negotiation—provides an important model.

In addition to the denial or cessation of funding for housing or urban development programs or activities, all federal agencies should aggressively monitor their programs and retain the option of providing conditional funding.77 Conditioning of funding would permit, for example, a housing project to be funded only if it were to be located within a specific set of census tracts, or have an increased number of accessible units.

More proactively, in those instances in which the Department is charged with selecting among proposed projects and jurisdictions, we recommend that an Opportunity Impact Statement system be used and considered among the criteria for selection, with a preference given to applicants showing both non-discrimination and an effective plan affirmatively to further fair housing.

As with the jurisdiction-wide AI review, we recommend pre-approval review of OIS submissions where possible, and a system of unannounced documentary and onside audits to provide meaningful incentives for compliance.

The regulations should make clear, however, that approval of funding by the Department does not constitute an administrative determination of substantive compliance with applicable legal obligations.

V.         Incorporating Examples

In providing needed guidance to agency staff, applicants, and recipients of federal funds, we  recommend that the revised regulations provide illustrative examples of compliant and non-compliant conduct and criteria.

As a template for these requirements, we recommend that HUD look to similar guidelines set forth in the Department of Transportation’s regulations implementing Title VI of the Civil Rights Act of 1964.  78 These regulations explain:

  • For projects funded under the Federal Aviation Administration, recipients must “select the site least likely to adversely affect existing communities,” where “there are two or more sites having equal potential to serve the aeronautical needs of the area,” and “[s]uch site selection shall not be made on the basis of race, color, or national origin.”  79
  • For projects funded by the Federal Highway Administration, “[t]he State shall not locate or design a highway in such a manner as to require, on the basis of race, color, or national ori- gin, the relocation of any persons,” and that “[t]he State shall not locate, design, or construct a highway in such a manner as to deny reasonable access to, and use thereof, to any persons on the basis of race, color, or national origin.”  80
  • For projects funded by the Urban Mass Transportation Administration, the “[f]requency of service, age and quality of vehicles assigned to routes, quality of stations serving different routes, and location of routes may not be determined on the basis of race, color, or national origin.”  81

HUD regulations implementing the AFFH duty and other equal opportunity obligations should provide analogous examples, customized to housing and urban development contexts.

Conclusion

Based on research, experience, and consultation with a broad range of experts, we believe that the reforms recommended here will significantly improve the fulfillment of HUD’s duty affirmatively to further fair housing while providing greater clarity, guidance, and uniformity to Department staff, stakeholders, and the public.

Appendix:
Proposed Regulations

AFFIRMATIVELY FURTHERING FAIR HOUSING IN FEDERAL  FUNDING DECISIONS — MODEL LANGUAGE

Sec.

1.1            Purpose.
1.2            Implementation.
1.3            Analysis of Impediments.
1.4            Opportunity impact statements.
1.5            Additional oversight and review mechanisms.
1.6            Examples of Compliant and Non-compliant conduct and criteria.

AUTHORITY: Exec. Order 11063 (1962), the Fair Housing Act, 42 U.S.C. § 3608(e)(5) (1968), Exec. Order 12892 (1994), Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d (2003), Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794 (1973).

§ 1.1     Purpose.

The purpose of this section is to ensure that all executive departments and agencies administer their programs and activities relating to housing and urban development in a manner affirmatively to further the purposes of the Fair Housing Act, 42 U.S.C. §3601-3619, and consistent with other applicable provisions ensuring equal opportunity and freedom from discrimination. In particular, it enumerates the processes, mechanisms, and actions that must be undertaken in this regard by entities receiving Federal financial assistance for programs or activities relating to housing or urban development, as well as certain Federal oversight procedures.

§ 1.2     Certification and Documentation of Affirmative Furtherance of Fair Housing.

(a)  Certification: Every application for Federal financial assistance to carry out a program or activity to which this part applies shall, as a condition to its approval and the extension of any Federal financial assistance, certify that it will affirmatively further fair housing across its jurisdiction, and shall provide documentation supporting that certification. Pursuant to the certification, the applicant shall engage in a process of fair housing planning which shall include: (1) Conducting an analysis to identify impediments to fair housing choice within the jurisdiction; (2) Identifying and taking appropriate actions to overcome the effects of any impediments identified through that analysis; and (3) Maintaining records reflecting the analysis and actions proposed and taken in this regard. Where the applicant is a State, its certification shall, in addition, provide assurance that units of local government funded by the State comply with their certifications affirmatively to further fair housing.

(b)  Impediments: For purposes of this part, potential impediments to fair housing that shall be assessed include, but are not limited to:
(i) Any public or private actions, omissions, policies, or decisions which have the
purpose or effect of restricting housing choices or the availability of housing choices
on the basis of race, color, religion, sex, disability, familial status, or national  origin.
(ii) Any public or private actions, omissions, policies, or decisions which have the
purpose or effect of segregating or concentrating residents based on race, color,
religion, disability, or national origin.
(iii)Any public or private actions, omissions, policies, or decisions which have the
purpose or effect of limiting access to opportunities associated with housing on the basis
of race, color, religion, sex, disability, familial status, or national origin.

Limitations on access to opportunities associated with housing, for purposes of this part, shall include barriers based on geographic location which unequally impede access to public transportation, employment, educational, health, entrepreneurial, or related opportunities, as well as community- based housing opportunities for people with disabilities.

(c) Data collection: Applicants shall collect and include in their analyses of impediments and proposed actions relevant data and information documenting demographic housing patterns and concentrations of racial, ethnic, religious, linguistic, family, or income groups, as well as people with disabilities, as reflected in federal, state, and other reliable sources of data and information.

§ 1.3    Submission and Review

(a)  Submission: Applicants shall submit to the relevant agency or department, through such method as the Secretary shall designate, a completed analysis of impediments and proposed actions to overcome them, supported by relevant demographic data and other verifiable information. Such submission shall be made at least once every 4 years, with updates submitted annually.

(b)  Oversight and review: Submissions must demonstrate, to the Secretary’s satisfaction, that analyses of impediments are complete and accurate, that actions proposed or undertaken to overcome the effects of any impediments are well tailored and sufficiently resourced meaningfully to overcome those effects, and that the program or activity, taken as a whole, will affirmatively further fair housing.

(i) Pre-approval review: To the greatest extent possible, the department or agency shall review applicants’ submissions under this section through documentary and onsite investigation before the approval or continuation of funding. Where pre-approval review is not possible, the department or agency shall provide post-approval review as quickly as possible.

(ii) Opportunity to comment: If, after reviewing all documents and data, the department or agency concludes that the analysis of impediments was substantially incomplete or the actions proposed or taken were inadequate to address the identified impediments, the department or agency will provide notice to the applicant that it believes that the duty affirmatively to further fair housing has not been met and will provide the jurisdiction an opportunity to provide further documentation or justification.

(iii) Post-approval investigations: Post-approval, submissions will be regularly reviewed by the department or agency, including for compliance, effectiveness of actions, and changed circumstances, as well as the sufficiency of initial submissions where pre-approval review has not occurred.

(iv) Noncompliance determinations: Where the department or agency determines, based on the totality of the circumstances, a failure affirmatively to further fair housing, it shall issue a public notification of noncompliance and shall deny or halt Federal financial assistance pending further negotiations and, where appropriate, referral for enforcement action.

(v) Effect of approval: Because the fair housing obligation is an ongoing one, approval of an Analysis of Impediments, Consolidated Plan, or Federal financial assistance by the department or agency does not constitute a determination of compliance with applicable legal obligations.

§ 1.4    Compliance in the Implementation of Specific Programs and Activities: Opportunity Impact Statements

Before directing Federal financial assistance toward specific programs or activities relating to housing or urban development, applicants and awardees shall prepare and submit to the relevant department    or agency an Opportunity Impact Statement documenting the projected or actual impact of such programs or activities on fair housing and on related aspects of Federally protected equal opportunity based on race, ethnicity, national origin, disability status, gender, and familial status.

(a)  The following steps must be completed before undertaking a new Federally funded program or activity, or before renewing funding for an existing program or activity:

(i) Data collection: Funding applicants and recipients shall collect data regarding the demographic composition of the jurisdiction, including metropolitan region or regions within which their program or activity will be located, and on the populations whose access to adequate and integrated housing would be burdened and benefitted by negative and positive impacts of the project/program. Where applicable, projects must explicitly collect data on, and consider, the following factors:

a.  Racial and socioeconomic integration: The statement shall explicitly consider whether the project will promote or discourage integrated housing and neighborhoods on the covered bases, and whether it will include and enhance housing opportunity, mobility, and affirmative fair housing measures, as required under existing law.

b.  Affordable housing integration: The statement shall explicitly consider whether provi- sions for more affordable housing are integrated into new project designs and whether the project includes measures to ensure that the populations with the greatest barriers to upward mobility (under 200% of the federal poverty level) have access to more quality housing.

c.  Displacement and related burdens: The statement shall explicitly consider whether anticipated displacement due to the project, if any, will disproportionately burden members of particular demographic groups or have either segregative or integrative effects.

d.  Accessibility of new housing units: The statement shall explicitly consider the extent to which new housing units are equally accessible to individuals and families across the covered characteristics, or if any burdensome procedures disparately impact these communities.

e.  Effect on people with disabilities: The statement shall explicitly consider whether the project increases the residential integration of individuals with disabilities and whether populations of people with disabilities who are facing the greatest barriers to community integration (e.g., individuals living in overly institutionalized settings) have access to community-based housing opportunities.

(ii) Public input and participation: After collecting data regarding the impact on equal oppor- tunity of a proposed or ongoing project, public comment on preliminary findings shall be facilitated such forms as community meetings, written public comments, and academic and social science research and analysis, online portals, and geographic information system mapping. The methods adopted, taken as a whole, must be accessible to affected community members, including people with disabilities and populations with limited English  proficiency.

(iii) Submission: Applicants and awardees shall submit to the relevant department or agency, and make available to the public in an accessible format, the Opportunity Impact Statement, as well as a Statement of Actions planned or undertaken to ensure that the program or activity affirmatively furthers fair housing and otherwise ensures compliance with applicable nondiscrimination provisions.

(iv) Agency analysis of Opportunity Impact submissions: Where the use of Federal funds for a particular program or activity requires approval by the department or agency, submission of the Opportunity Impact Statement and Statement of Action shall be a necessary condition for approval.

(b)  Oversight and review: Submissions must demonstrate, to the Secretary’s satisfaction, that Opportunity Impact Statements are complete and accurate, that actions proposed or undertaken to overcome barriers to opportunity are well tailored and sufficiently resourced meaningfully to overcome those barriers, and that the program or activity, taken as a whole, will affirmatively further fair housing.

(i) Pre-approval review: To the greatest extent possible, the department or agency shall review applicants’ submissions under this section through documentary and onsite investigation before the approval or continuation of funding. Where pre-approval review is not possible, the department or agency shall provide post-approval review as quickly as possible.

(ii) Opportunity to comment: If, after reviewing all documents and data, the department or agency concludes that the submission was substantially incomplete or the actions proposed or taken were inadequate to address the identified barriers, the department or agency will provide notice to the applicant that it believes that the duty affirmatively to further fair housing or otherwise comply with equal opportunity provisions has not been met and will provide the jurisdiction an opportunity to provide further documentation or justification.

(iii) Post-approval investigations: Post-approval, submissions will be regularly reviewed by the department or agency, including for compliance, effectiveness of actions, and changed circumstances, as well as the sufficiency of initial submissions where pre-approval review has not occurred.

(iv) Noncompliance determinations: Where the department or agency determines, based on the totality of the circumstances, a failure affirmatively to further fair housing or unlawful discrimination, it shall issue a public notification of noncompliance and shall deny or halt Federal financial assistance pending further negotiations and, where appropriate, referral for enforcement action.

(v) Effect of approval: Because the fair housing and equal opportunity obligations are ongoing ones, approval of an Opportunity Impact Statement and Action Plan, or Federal financial assistance by the department or agency does not constitute a determination of compliance with applicable legal obligations.

(c) Funding determinations: Where the department or agency must decide among competing applications for the provision of Federal financial assistance to housing or urban development projects, it shall, to the extent possible and as permitted by law, consider Opportunity Impact Statements and Action Statements as factors in its decision making, providing a preference for applications that will maximize the furtherance of fair housing and the expansion of equal opportunity.

§ 1.5    Additional Oversight and Review Mechanisms

(a) Monitoring and enforcement: Federal departments and agencies shall regularly monitor programs and activities receiving Federal financial assistance through documentary and onsite investigations. Among other methods, departments and agencies may select for particularized investigation applicants and awardees at random or based on data, complaints, or other information indicating impediments to fair housing or a failure fully to address existing impediments.

§ 1.6    Examples of Compliant and Non-Compliant Conduct and Criteria

The following are illustrative examples of compliant and non-compliant conduct and criteria:

  • For projects funded under CDBG or HOME grants, recipients should select the viable site most likely to promote residential integration and least likely to maintain or exacerbate existing levels of segregation, based on based on race, ethnicity, national origin, disability status, and familial status.
  • In administering federal tax credits through the Low-Income Housing Tax Credit Program, state housing agencies should prioritize directing tax credits to suburban jurisdictions that do not currently have any or much subsidized housing, with the requirement that those developments achieve racial, as well as economic, integration, and promote racial non-discrimination and desegregation. In administering these tax credits, decisions about sites should be made by the state, rather than by private third parties.

Notes:

1. 42 U.S.C. § 3608(e)(5) (2010).

2. U.S. Department of Housing and Urban Development, Mission.

3. See, e.g., Margery Austin Turner & Dolores Acevedo-Garcia, The Benefits of Housing Mobility: A Review of the Research Evidence, in Keeping the Promise: Preserving and Enhancing  Housing  Mobility  in  the  Section  8  Housing  Choice  Voucher  Program  9 (Philip Tegeler et al., eds., 2005).

4. See, e.g., Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d (2003) (prohibiting discrimination based on race in federally funded programs or activities); Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794 (1973) (prohibiting discrimination based on disability in federally funded programs or activities); Exec. Order 11246, 30 Fed. Reg. 12319 (1965) (requiring affirmative action in employment decisions by federal contractors and federally assisted construction contractors and subcontractors); Exec. Order 12898, 59 Fed. Reg. 7629 (1994) (requiring that no racial, ethnic, socioeconomic, or other group of people should bear disproportionate environ- mental burdens resulting from industrial, commercial, or government operations or policies); see also Bob Jones Univ. v. United States, 461 U.S. 574 (1983) (non-profit institutions engaging in racial discrimination may not claim tax exempt status under the U.S. Tax Code).

5. See 42 U.S.C. § 3608(d) (“All executive departments and agencies shall administer their programs and activities relating to housing and urban development . . . in a manner affirmatively to further the purposes of this title and shall cooperate with the Secretary [of Housing] to further such purposes”).

6. See, e.g., HUD Title VI Regulations, 24 C.F.R. § 1.1-1.10 (2009); HUD Age Discrimination Act Regulations, 24 C.F.R. pt. 146 (2009); HUD Title IX Regulations, 22 C.F.R. pt. 229 (2009); Department of Transportation Title VI Regulations, 49 C.F.R. § 21.1-21.3 (2009); Department of Energy Title VI Regulations, 34 C.F.R. pt. 100 (2009).

7. See, e.g., Douglas Massey & Nancy A. Denton, American Apartheid: Segregation and the Making of the Underclass (Har- vard Univ. Press 1993).

8. See Leadership Conference on Civil Rights, The  Future of Fair Housing: Report of the Natonal Commission on Fair  Housing and Equal Opportunity, App. A: Emerging Fair Housing Legislative and Regulatory Issues (2008); Poverty & Race Research Action Council, Current Projects: The Housing Mobility Initiative.

9. 42 U.S.C. § 3608(e)(5) (2010).

10. 42 U.S.C. § 3601 (2010).

11. Evans v. Lynn, 537 F.2d 571, 577 (1975) (citing 114 Cong. Rec. 9563 (statement of Rep. Celler)).

12. Trafficante v. Metro. Life Ins. Co., 409 U.S. 205, 211 (1972) (citing 114 Cong. Rec. 3422 (statement of Sen. Mondale)).

13. N.A.A.C.P. v. Sec’y of Hous. and Urban Dev., 817 F.2d 149, 155 (1st   Cir. 1987).

14. Id. (quoting Otero v. N.Y. City Hous. Auth., 484 F.2d 1122, 1134 (2d Cir. 1973)).

15. See, e.g., Thompson v. Hous. and Urban Dev., Civ. Act. No. MJG-95-309, at 143 (D. Md. 2006) (“HUD must take an approach to its obligation to promote fair housing that adequately considers the entire Baltimore Region.”); Gautreaux v. Chi. Hous. Auth., 503 F.2d 930, 937 (7th Cir. 1974) (“To solve problems of the ‘real city’, only metropolitan-wide solutions will do”), aff’d, 425 U.S. 284, 299 (1976) (“The relevant geographic area for purposes of the respondents’ housing options is the Chicago housing market [including the Chicago suburbs], not the Chicago city limits”).

16. 42 U.S.C. § 5309(b), as amended (2006); see also Langlois v. Abington Hous. Auth., 234 F.Supp. 2d 33, 73, 75 (D. Mass. 2002) (“When viewed in the larger context of Title VIII, the legislative history, and the case law, there is no way—at least no way that makes sense—to construe the boundary of the duty to [AFFH] as ending with the Secretary. . . . [t]hese regulations unambiguously impose mandatory requirements on the [public housing authorities] not only to certify their compliance with federal housing laws, but actually to comply”); Massachusetts Dep’t of  Hous. and  Comm. Dev., Affirmative  Fair  Housing  and  Civil  Rights  Policy  9  (2009) (“[F]ederal executive orders indicate that HUD is to extend its duty to affirmatively further fair housing to the recipients of its funding. Federal Executive Order 12259 followed by Executive Order 12892 provide that federal agencies shall require applicants or participants of federal agency programs relating to housing and urban development to affirmatively further fair housing”).

17. Anderson v. City of Alpharetta, Ga., 737 F.2d 1530, 1537 (11th Cir. 1984) (citing Client’s Council v. Pierce, 711 F.2d 1406, 1422-23);

Gautreaux v. Romney, 448 F.2d 731, 739 (7th Cir. 1971)).

18. See Exec. Order No. 12892, at Sec. 1 (1994); 42 U.S.C. § 3608(d) (2010).

19. Exec. Order No. 12892, at Sec. 1.

20. Id. at Sec. 4(a).

21. 24 C.F.R. § 570.487(b)(1)-(4) (2010).

22. 24 C.F.R. § 225(a)(1).

23. U.S. Department of Housing and Urban Development, Office of Community Planning and Development, Guidelines for Preparing Consolidated Plan and Performance and Evaluation Report Submissions for Local Jurisdictions [hereinafter Guidelines for Preparing Consolidated Plan], 18 (2010).

24. U.S. Department of Housing and Urban Development, Office of Fair Housing and Equal Opportunity, Fair Housing Planning Guide, Vol. 1 (1996).

25. Guidelines for Preparing Consolidated Plan, supra fn 23, at 3.

26. Id. at 3-12.

27. Fair Housing Planning Guide, supra fn 24 at ii.

28. See, e.g., Thomas Jefferson Univ. v. Shalala, 512 U.S. 504, 512 (1994); Chevron U.S.A., Inc. v. Natural Resources Def. Council, Inc., 467 U.S. 837 (1984); HUD Tenants Coal. v. United States Dep’t of Hous. and Urban Dev., 274 Fed. Appx. 124 (3rd Cir. 2008).

29. Exec. Order No. 12259, 46 Fed. Reg. 1253 (1980).

30. Exec. Order No. 12892, 59 Fed. Reg. 20 (1994) (emphasis added).

31. See, e.g., James R. Breymaier, The Need to Prioritize the Affirmative Furthering of Fair Housing: A Case Statement, 57 Clev. St. L. Rev. 245, 248 (2009); Florence Wagman Roisman, Keeping the Promise: Ending Racial Discrimination in Federally Financed Housing, 48 How. L.J. 913 (2005); American Civil Liberties Union, et al., Coalition Letter to HUD Secretary Martinez on Key Civil Rights Issues in the New HUD Administration (March 2001).

32. Dr. Jill Khadduri, Former Director of the Division of Policy Development at HUD, Testimony in Support of Thompson v. Hous. and Urban Dev., Civ. Act. No. MJG-95-309 (D. Md. 2006), 3. See also id. at 9 (“HUD has significant ability to influence decisions made by local governments and states on the use of block grant funds to create desegregated housing opportunities”).

33. Id. at 19.

34. Id.

35. Leadership Conference on Civil Rights, supra fn 8.

36. Id. These identified shortfalls were in addition to reported failures by HUD to incorporate the AFFH requirement into its direct admin- istration of Section 8, public housing, and related programs administered directly by the Department.

37. 42 U.S.C. § 3608(e)(6) (2010).

38. See Anti-Discrimination Center of Metro N.Y. v. Westchester County, 495 F.  Supp. 2d 375, 377-78   (S.D.N.Y. 2007).

39. Michael Allen, Counsel, Relman & Dane, PLLC, Testimony to the National Commission on Fair Housing and Equal Opportunity Public Hearing 3 (Sept. 22, 2008).

40. See Anti-Discrimination Center of Metro N.Y., supra fn 38, at 387

41. Allen, supra fn 39, at 3.

42. Id.

43. See, e.g., 24 C.F.R. § 570.487(b) (2009) (“The certification that the State will affirmatively further fair housing shall specifically require the State to assume the responsibility of fair housing planning by (1) Conducting an analysis to identify impediments to fair housing    choice within the State . . . ”).

44. 42 U.S.C. § 3608(e)(5) (2010) (emphasis added).

45. Exec. Order No. 12259, 46 Fed. Reg. 1253 (1980).

46. See Title VI of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000d-1 to 2000d-7 et seq. (1964); see also Title VII of the Civil Rights Act, 42 U.S.C. § 2000e et seq. (1964); Title IX of the Education Amendments, 20 U.S.C. § 1681 et seq. (1972); Section 504 of the Rehabilitation Act, 29 U.S.C. § 794 (1973); the Americans with Disabilities Act, 423 U.S.C. §§ 12101-12213, as amended (1990).

47. 24 C.F.R. § 1.6(b) (2010).

48. See Fair Housing Planning Guide, supra fn 24, at 2-8.

49. Trafficante v. Metro. Life Ins. Co., 409 U.S. 205, 211 (1972) (recognizing “integrated and balanced living patterns” as a purpose of the Fair Housing Act) (citing 114 Cong. Rec. 3422 (statement of Sen. Mondale)); Otero v. New York City Hous. Auth., 484 F.2d 1122, 1134 (2d Circ. 1973); Metro. Hous. Dev. Corps v. Village of Arlington Heights, 558 F.2d 1283, 1289-1290 (7th Cir. 1977); Shannon v. HUD,   436 F.2d 809 (3d Cr. 1970). See also Thompson v. Hous. and Urban Dev., 220 F.3d 241 (D. Md. 2006) (case spurred by the demolition of a high rise public housing development, with plans to locate replacement housing in neighborhoods with similar levels of segregation); Anti-Discrimination Center of Metro N.Y. v. Westchester County, 495 F. Supp. 2d 375, 377-78 (S.D.N.Y. 2007) (finding Westchester County subject to liability under the False Claims Act for making little or no effort to determine where low-income housing was being placed, or to finance homes and apartments in communities that opposed affordable housing).

50. See 42 U.S.C. § 3604(b) (2010) (“it shall be unlawful . . . [t]o discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith . . . .”); 24 C.F.R. §100.70(d)(4) (2010) (“discriminatory housing practices” include “[r]efusing to provide municipal services…because of race, color, religion, sex, handicap, familial status, or national origin); see also United States v. Yonkers Bd. of Educ., 837 F.2d 1181 (2nd Cir. 1987) (noting the interrela- tionship of housing segregation and school access and invalidating discriminatory zoning and siting choices); Southend Neighborhood

Improvement Ass’n v. County of St. Clair, 743 F.2d 1207, 1209 (7th Cir. 1984) (Section 3604 generally “forbids discrimination in making available or providing services related to housing”); NAACP v. Am. Family Mut. Ins. Co., 978 F.2d 287 (7th Cir. 1992), cert. denied, 503

U.S. 907 (1993) (Fair Housing Act prohibits discrimination in provision of homeowners insurance).

51. See The Joint Center Health Policy Institute & The Opportunity Agenda, Using Maps to Promote Health Equity (2009). Kirwan Institute for the Study of Race and Ethnicity, Utilizing GIS to Support Advocacy and Social Justice: A Case Study of University-Led Initiatives 17 (2009). (“The [Kirwan] Institute may provide maps and GIS-based analysis to internal work groups within public agencies, or may provide public reports directly to policy-makers to raise awareness around a specific advocacy concern or issue”).

52. Cf. Equal Employment Opportunity Comm’n, Uniform Employee Selection Guidelines, at Sec. 15(1)(c); (similarly establishing a percentage-based framework to identify an adverse discriminatory impact).

53. 41 C.F.R. pt. 60-3.4(d) (1978).

54. Khadduri, supra fn 32 at 39.

55. Id.

56. See 29 U.S.C. § 794 (2010); 24 C.F.R. 8.22(c) (2010); 24 C.F.R. 8.26 (2010).

57. Khadduri, supra fn 32, at 39-40.

58. See, e.g., Arlene S. Kanter, A Home of One’s Own: The Fair Housing Amendments Act of 1988 and Housing Discrimination Against People with Mental Disabilities, 43 Am. U. L. Rev. 925 (1994) (discussing the history of housing segregation based on mental disability).

59. Memorandum from Anti-Discrimination Center, Inc. to Hon. John Trasviña, Assistant Secretary, Office of Fair Housing and Equal Op- portunity 2 (Oct. 26, 2009).

60. Id.

61. Id.

62. Id.

63. Id.

64. 24 C.F.R. § 91.500 (2009).

65. Exec. Order 12250, 28 C.F.R. pt. 41 (1980).

66. In addition to the Fair Housing Act, the following civil rights laws, among others, apply anti-discrimination requirements to programs funded by HUD: Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d (2003); Section 504 of the Rehabilitation Act of 1973, 29

U.S.C. § 794 (1973); Title II of the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101-12213, as amended (1990); the Age Discrimination Act of 1975, Age Discrimination Act of 1975, 42 U.S.C. 6101 et seq. (1978); Title IX of the Education Amendment Acts of 1972, 20 U.S.C. § 1681 et seq. (1972); Exec. Order 11246, 30 Fed. Reg. 12319 (1965) (requiring affirmative action in employment decisions by federal contractors and federally assisted construction contractors and subcontractors); Exec. Order 12898, 59 Fed. Reg. 7629 (1994) (requiring that no racial, ethnic, socioeconomic, or other group of people should bear disproportionate environmental burdens resulting from industrial, commercial, or government operations or policies); and HUD regulations enacting the foregoing requirements, see, e.g., HUD Title VI Regulations, 24 C.F.R. § 1.1-1.10 (1973); HUD Age Discrimination Act Regulations, 24 C.F.R. pt. 146 (2009); HUD Title IX Regulations, 22 C.F.R. pt. 229 (2009).

67. See Marc Mauer, Racial Impact Statements as a Means of Reducing Unwarranted Sentencing Disparities, 5 Ohio St. J. Crim. L. 19, 32 (discussing current use by policymakers of environmental impact statements, fiscal impact statements, and health impact statements).

68. See supra Section III(a)(iv).

69. See Thompson, supra fn 15, at 143; john powell, Executive Director, Kirwan Institute for the Study of Race & Ethnicity, Remedial Phase Expert Report in Support of Thompson, at 40 (“In order to remedy the harms of its failure to desegregate and further fair housing, HUD must pursue metropolitan-wide strategies”); Memorandum from Anti-Discrimination Center, supra fn 59, at 7 (“Segregation and other barriers to fair housing choice developed and operate regionally; barriers can only be overcome effectively with a regional approach. There needs to be a funding pool that is limited to those metropolitan regions that have agreed to pool housing opportunities across borders, and to locate such housing in a manner that facilitates racial and other forms of integration”).

70. On November 13, 2000, HUD published a proposed regulation outlining the application of the Fair Housing Act to acts of sexual harassment in the housing context. However, HUD never issued final regulations. Sexual harassment in housing repeatedly has been the subject of complaints and litigation. See National  Commission  on  Fair  Housing  and  Equal  Opportunity, The  Future  of  Fair Housing  App. A  (2008).

71. 42 U.S.C. § 4600 et seq. (1970).

72. Letter from Peter Rogoff, Administrator, Federal Transit Administration, to Steve Heminger, Executive Director, Metropolitan Trans- portation Commission, and Dorothy Dugger, General Manager, San Francisco Bay Area Rapid Transit District (Feb. 12, 2010).

73. Exec. Order 12898, 59 Fed. Reg. 32 (1994).

74. 42 U.S.C §1973c.

75. While Section 5 of the VRA is viewed as an extraordinary remedy, federalism considerations do not apply where, as here, agency oversight relates to the use of federal funds.

76. In addition to the solicitation of new information on specific proposed or ongoing projects of HUD recipients, the following existing research or data, among others, should be consulted, as necessary, to judge the impact on fair housing opportunity of new programs and the siting of new housing: the locations of all current affordable housing, including tax credit properties, state and locally funded housing, and private housing; income and poverty rates of populations served by new housing; records of foreclosure within the area targeted; reports on the green areas and recreational spaces increased or decreased by a project; the U.S. Census Bureau’s report on housing patterns; the American Community Survey; and the expanded data regarding occupancy patterns (including race, ethnicity, and disability) now federally required for the Low Income Housing Tax Credit (“LIHTC”) program. For more information on specific types of suggested fair housing research, see National Commission on Fair Housing and Equal Opportunity, supra fn 70, at XI. The Necessity of Fair Housing Research.

77. See Exec. Order No. 12892, Sec. 5 (setting forth agency enforcement provisions for the AFFH requirement).

78. 49 C.F.R. § 21 (1970).

79. 49 C.F.R. § 21, App. C(a)(1)(viii).

80. 49 C.F.R. § 21, App. C(a)(2)(vi) and  (vii).

81. 49 C.F.R. § 21, App. C(a)(3)(iii)

Memorandum: The Relationship Between Racial Integration and the Duty to Further Fair Housing

I.   Introduction

This memorandum discusses the contemporary relevance of residential integration to the U.S. Department of Housing and Urban Development’s affirmative fair housing duties. Based on our review of legal jurisprudence, social science research, and expert opinion, we recommend a framework for incorporating integration considerations into housing and urban development decision-making.

In some ways, the topography of 21st century America reflects a thriving diversity in our country’s population: for example, as of the 2000 Census, Latinos comprised 12.5% of the population, up from 9% in 1990,1 and the number of Asian Americans had increased by 48% since 1990.2  The 2010 Census will no doubt show far greater diversity, including in formerly homogeneous areas. These shifting demographics raise the question of how best to further fair housing across all communities, especially where the implications of racial segregation may differ among different ethnic groups.  Drawing on a thorough review of legal and social science research, as well as expert opinion, we conclude that racial integration remains a compelling directive of far-reaching relevance. Even as diversity is flourishing, patterns of segregation have held fast in cities throughout the nation. Those who inhabit them know that too often, segregated neighborhoods are not “separate but equal,” but rather are encumbered by the continuing effects of discrimination and isolation from opportunity. Even those who arrive in search of new beginnings – the many immigrants settling in communities across the country – frequently find their paths to opportunity impeded by the inequities that surround them.

Integration closes many of those gaps, while offering people of color the same benefits that accrue to all of us when our horizons are expanded: richer social networks to tap and opportunities to learn from those around us.

The continuing need to address residential segregation and its causes is a crucial aspect of the Fair Housing Act (FHA), and the Department of Housing and Urban Development (HUD)’s mandate to affirmatively further fair housing (AFFH)3 should reflect that objective. While AFFH has a wide scope, it takes shape from the FHA’s core aims: “to provide, with constitutional limitations, for fair housing throughout the United States;”4 to “remove the walls of discrimination which enclose other minority groups;”5 and to foster “truly integrated and balanced living patterns.”6 In other words, the Fair Housing Act requires HUD proactively to promote non-discrimination, residential integration, and equal access to the benefits of housing – and these duties extend throughout the country, and to all ethnicities.

New immigrant communities and majority-minority jurisdictions add additional complexity, which we discuss below. But while demographic changes should be considered in assessing how to further fair housing, those changes do not remove or circumvent the integration mandate. As we discuss below, the FHA’s focus on segregation is of continuing and widespread relevance. Thus, while HUD funds may still be used to improve the choices and opportunity available to segregated communities, we believe that AFFH rules should include a strong presumption that decision-making and implementation will seek to foster residential integration and will not perpetuate or deepen existing segregation.

 II.  Legal Mandate

 A.  The Fair Housing Act and Integration

As noted above, integration is not a peripheral concern of the Fair Housing Act – rather, it constitutes one of the Act’s core directives. Since the FHA’s passage, courts have interpreted it to assert that integration is a focal fair housing mandate. In Trafficante v. Metropolitan Life Insurance Co.,7 a cornerstone case of fair housing law, the Supreme Court held that, beyond advancing individuals’ freedom of choice, the FHA was intended to ensure the benefits of integration for “the whole community.”  This principle was reinforced by the ruling in Gladstone, Realtors v. Bellwood, where the Court granted white plaintiffs standing on the basis that the “transformation of their neighborhood from an integrated to a predominantly Negro community is depriving them of ‘the social and professional benefits of living in an integrated society;’”8 see also Havens Realty Corp. v. Coleman.9  In Linmark Associates, Inc. v. Township of Willingboro, the Court again noted that through the FHA, Congress made “a strong national commitment to promote integrated housing.”10 The authors of the Act emphasized, for example, the troubling fact that “an overwhelming proportion of public housing . . . in the United States directly built, financed and supervised by the Federal Government — is racially segregated.”11 As with the FHA generally, the mandate to AFFH is grounded in these legislative concerns about segregation: Congress “enacted section 3608(e)(5) to cure the widespread problem of segregation in public housing.”3

The principle that integration is an essential aim of the Fair Housing Act has resonated throughout subsequent decisions delineating the FHA’s proper application, in contexts that include, but transcend, public housing.  This line of cases includes: Otero v. New York City Housing Authority (finding that the New York City Housing Authority “is under an obligation to act affirmatively to achieve integration in housing. The source of that duty is both constitutional and statutory”), Park View Heights v. City of Black Jack (“[t]he primary objective of Title VIII is, as Vice-President Mondale said, when a Senator, to replace the ghettos ‘by truly integrated and balanced living patterns’…This objective is one that Congress considered to be of the highest priority and in order to achieve it, courts must construe the provisions of Title VIII broadly”), Metropolitan Housing Development Corp. v. Village of Arlington Heights (actions perpetuating segregation “will be considered invidious under the Fair Housing Act independently of the extent to which it produces a disparate effect on different racial groups”), Huntington Branch, NAACP v. Town of Huntington (courts should consider the “segregative effect of zoning ordinances,” as the perpetuation of segregation is a violation of the FHA), Altschuler v. HUD (through the AFFH provision, “Congress imposed on HUD a substantive obligation to promote racial and economic integration in administering the section 8 program”); as well as in Shannon v. HUD (holding that under its AFFH duty, HUD is required to make an “informed decision on the effects of site selection or type selection of housing on racial concentration,” and stating that “[i]ncrease or maintenance of racial concentration is prima facie likely to lead to urban blight and is thus prima facie at variance with the national housing policy”).13

While the Fair Housing Act’s passage was precipitated by concern over African American ghettos, numerous applications over the life of the statute have addressed barriers to the integration of other communities.  Examples of this include: United States v. Secretary of HUD, 239 F.3d 211 (2d Cir. 2001); Davis v. New York City Housing Authority, 1992 U.S. Dist. LEXIS 19965 (S.D.N.Y. Dec. 30, 1992); NAACP v. City of Kyle, 2006 U.S. Dist. LEXIS 51226 (W.D. Tex. June 16, 2006); Hispanics United v. Village of Addison, 988 F. Supp. 1130 (N.D. Ill. 1997); Huntington Branch NAACP v. Town of Huntington, 844 F.2d 926, 937 (2d Cir. 1988); Anti-Discrimination Center of Metro New York, Inc. v. Westchester County, New York, 668 F. Supp. 2d 548, 564 (S.D.N.Y. 2009); United Farmworkers of Florida Housing Project, Inc. v. Delray Beach, 493 F.2d 799 (5th Cir. 1974); Jaimes v. Toledo Metropolitan Housing Authority, 715 F. Supp. 835 (N.D. Ohio 1989).14 In short, the courts have made clear that the integration mandate applies to all American communities, not just African Americans.  Nor would it be legally appropriate, in any event, to interpret the Act differently as applied to different ethnicities.

B.  Other HUD Regulations and Provisions Addressing Integration

Just as the concerns with segregation are clear in the FHA’s roots, they are also evident in its branches: a number of existing FHA regulations direct attention to the aim of furthering integration.  These include:

  • Affirmative Fair Housing Marketing Regulations, requiring participants in housing programs to reach out to ethnic groups to promote integration.15

Public housing authority program requirements regarding the location of new and renovated projects. This regulation prohibits the siting of new construction projects in:

  • An area of minority concentration unless (A) sufficient, comparable opportunities exist for housing for minority families, in the income range to be served by the proposed project, outside areas of minority concentration, or (B) the project is necessary to meet overriding housing needs which cannot otherwise feasibly be met in that housing market area. An “overriding need” may not serve as the basis for determining that a site is acceptable if the only reason the need cannot otherwise feasibly be met is that discrimination on the basis of race, color, religion, creed, sex, or national origin renders sites outside areas of minority concentration unavailable; or
  • A racially mixed area if the project will cause a significant increase in the proportion of minority to non-minority residents in the area.16
  • Nondiscrimination in Federally Funded Programs of HUD, prohibiting recipients from “subject[ing] a person to segregation or separate treatment in any matter related to his receipt of housing, accommodations, facilities, services, financial aid, or other benefits under the program or activity.”17

C.   Integration and the AFFH Duty

While HUD has considerable discretion in determining the most effective means of AFFH, “that discretion must be exercised within the framework of the national policy against discrimination in federally assisted housing, and in favor of fair housing.”18 The duty to AFFH requires that HUD actively promote the FHA’s aims. It also requires that HUD responsibly administer its funds with an eye to their racial impact. Thus, HUD must ensure that the programs it funds promote fair housing goals. See, e.g., Gautreaux v. Romney (stemming the flow of HUD funding after determining that defendants perpetuated segregation); United States ex rel. Anti-Discrimination Center of Metro N.Y., Inc. v. Westchester County.19 HUD must also consider each project’s potential effect on racial segregation. Shannon v. HUD; see also, e.g., Project B.A.S.I.C. v. Kemp, stating that “this Court recognizes that desegregation is not the only goal of national housing policy. HUD also has an obligation to generally meet low-income housing needs. This, however, does not mean that HUD can avoid its affirmative duty under the Fair Housing Act” to consider the “effect of its actions on the racial and socioeconomic composition of the surrounding area.”20

Because Section 3608 imposes an affirmative obligation, it requires more than that the government “simply refrain from discriminating themselves or from purposely aiding discrimination by others” in addressing race.21 Rather, the Department must take active measures to achieve the FHA’s aims.22

Although the mandate to AFFH has lacked explicit parameters over much of its lifetime, it is clear that the aim of promoting racial integration lies at the provision’s heart. Thus, AFFH requires that “action must be taken to fulfill, as much as possible, the goal of open, integrated residential housing patterns and to prevent the increase of segregation[.]”23 HUD has been held to have an AFFH duty – despite the absence of any “specific actions or remedial plans” structured by §3608 – requiring “a commitment to desegregation. [HUD’s] failure to attain this standard can constitute an actionable statutorily violative practice.”24

Attempts to supplant the consideration of race in housing policy, if found to perpetuate segregation, will also be found to violate this AFFH obligation. See Langlois v. Abington Housing Authority, stating that “Section 8 residency preferences violate the affirmative furtherance principle when their institution would fortify predominantly white communities against minority entry;” United States ex rel . Anti-Discrimination Center of Metro New York, Inc. v. Westchester County, New York, 25 stating that “[t]he HUD Guide’s requirement that [funding] grantees analyze segregation [as part of their obligation to AFFH] is “firmly rooted in the statutory framework and caselaw….While the County was certainly not required to follow every specific suggestion or every recommendation in the HUD Guide, it cannot be completely wide of the mark regarding the suggestions relating to the central goal of the obligation to AFFH – to end housing discrimination and segregation – and still be considered compliant with its AFFH obligations,” and that using income as a proxy for race was not sufficient.26

HUD’s Fair Housing Planning Guide, as referenced in the Westchester27 case, also addresses the duty of racial integration. The Guide states that HUD “is committed to eliminating racial and ethnic segregation….Additionally, the Department will use all of its programmatic and enforcement tools to achieve this goal.” The Guide also instructs grantees regarding their obligations pertaining to integration, for example:

  • Grantees must conduct analyses of impediments to fair housing, which must “describe the degree of segregation and restricted housing by race, ethnicity, disability status, and families with children; how segregation and restricted housing supply occurred; and relate this information by neighborhood and cost of housing.”28
  • Public housing authorities are encouraged to use scattered site, low-density housing acquisition as means to deconcentrate racially impacted public housing.29
  • States and local governments are encouraged to undertake regional FHP, with the aim of overcoming segregation.30
  • In completing their Analyses of Impediments, states “can use available data… to gauge whether impediments to fair housing choice exist and whether there are State regulatory policies, practices, and procedures that encourage segregation by race, income, and/or disability….Upon completion of their AIs, States should take actions that are responsive to the identified impediments.”31

III.   Integration in a Multi-Cultural America

As noted above, the legal integration mandate imbedded in the Fair Housing Act generally, and the AFFH duty in particular, applies across all racial and ethnic groups. Indeed, in the Supreme Court’s seminal Trafficante decision, it recognized the standing of white residents of a segregated white community based on “the loss of important benefits from inter-racial associations.”32 Courts have found that segregation of a variety of groups violates the Act.33

As we detail below, the desire for integrated communities is shared by contemporary communities of color.  But it is worth noting here that the integration mandate has never been solely a matter of fulfilling the individual choices of African Americans or other minorities. Rather, the Fair Housing Act promotes integration in large part because of its benefits to society as a whole. Lack of enthusiasm, or even opposition at the individual level is not alone sufficient to justify governmental support of segregation.34  Thus, while individuals are free to self-segregate for any number of reasons, government may not enforce that choice,35 and HUD funds may certainly not be used to effectuate or perpetuate it.

That said, we detail below that there is strong evidence that different communities of color generally desire integrated neighborhoods, that past and present discrimination remain barriers to fulfilling that desire in the housing mandate, and that integrated living patterns benefit all groups in significant ways.

IV.   Neighborhood Preferences and Causes of Segregation

A large body of research and experience shows that, while most minorities would prefer to live in integrated neighborhoods, they are denied this choice through a combination of segregative forces, including persistent discrimination, the legacy of historical barriers, white response to stereotypes, and narrow options for where they can affordably live.

While one study on Latino communities found that “it makes a difference whether immigrants or their descendants live in an ethnic neighborhood as a result of discrimination or due to their own choice or preference,”36 the meaningful ability to make such a choice is elusive for too many people. Thus, in a St. Louis study, even those residents who stated a preference for living in their West Side neighborhood (with a high concentration of immigrants) also noted a lack of affordable options elsewhere, and were discouraged by concerns about discrimination.37 Other research confirms that while blacks frequently remain segregated despite income, “as Latinos and Asians improve their socioeconomic class standing, their rates of segregation from whites decrease.”38

A body of opinion data indicates that most racial minorities would prefer to live in integrated neighborhoods, though some are hesitant to be pioneers in areas where they envision encounters with prejudice. For example, one study found that “African- Americans overwhelmingly prefer 50-50 areas, a density far too high for most whites –and that their preferences are driven not by racial solidarity or neutral ethnocentrism but by fears of white hostility. Moreover, almost all blacks are willing to move into largely white areas if there is a visible black presence. White preferences also play a key role, since [w]hites are reluctant to move into neighborhoods with more than a few African Americans.”3

Like blacks, both Latinos and Asian Americans have been found to prefer neighborhoods that are approximately 50% Latino or Asian and 50% white. Notably, only 17% of Asian Americans (in a study of Chinese, Japanese, and Korean Americans in Los Angeles) preferred the option of an all-Asian neighborhood when asked about integrating with whites.40 Opinion research has also found that “[o]nly a trivial percentage of blacks, Hispanics, and Asians express objection to living in a largely white neighborhood. The figure is below 10% for each of the minority groups.”41

Because people of color tend to seek greater levels of integration than do whites, even as minorities seek to leave behind their traditional neighborhoods in search of a more integrated life, white prejudice can turn this goal into a fleeting horizon. As minorities integrate communities, their increased population may reach a “tipping point” that causes whites to seek housing elsewhere. Such “‘[t]ipping’ can be seen clearly in cities from all regions of the country, both “sun-belt” and “rust-belt” and both the North and the South, and in cities with both large and small minority shares.”42 However, “tipping points are higher in cities with more tolerant whites, underscoring the role of white preferences in tipping and the dynamics of segregation.”43 While whites are most reluctant to live side- by-side with significant numbers of black neighbors, other races may trigger this as well: one poll found that one-sixth of whites would be upset if a “substantial number” of Chinese Americans moved into their neighborhood, 44 while low-income Asian Americans have been found more likely to cause white flight than either wealthier Asian Americans or Latinos.45 Thus, even where minorities seek to integrate, segregation may be re-imposed on them as whites retreat.

Segregation can become self-perpetuating in part due to negative stereotypes formed about non-white neighborhoods and their attendant lack of services.46  As one researcher stated, “[f]or blacks, Latinos, and Asians, economic and social advancement is associated with greater proximity and similarity to white Americans. For whites, integration – especially with blacks – brings the threat of a loss of relative status advantages. As a result, attitudes on an issue like racial residential integration are likely to have very different meanings to whites than to members of any of the minority groups, even comparatively affluent Asians.”47

Historically and today, people of color – including Latinos, Asian Americans, and Native Americans, as well as blacks – have been subject to discrimination limiting their options in housing. As with African Americans, segregation of other minority communities has been perpetuated by both governmental and private forces, including persistent discrimination in sales by white homeowners;48 disparities in the provision of banking and credit;49 and land use practices. Past practices often sculpt current realities, as in East L.A., where a history of restrictive covenants and other discrimination against Mexican Americans in Los Angeles has concentrated Latinos.50

Like other minorities, Asian Americans have grappled with the effects of both restrictive zoning and individual prejudice. For instance, some of the nation’s earliest zoning ordinances were enacted to contain the Chinese,51 and at least through the 1970s, “Asian families were reluctant to search for housing outside of Chinatown[s] because of racial discrimination… many whites refused to sell to Asians.”52  In Seattle, restrictive covenants barring the sale of land to Asian Americans were pervasive in the first half of the twentieth century, except for a few neighborhoods. As a result, “[p]eople of color had little chance of finding housing except in the central neighborhoods of Seattle.”53

Compared with whites, minorities of all races and ethnicities struggle to obtain fair credit to live where they wish.54 This problem is compounded by inaccurate information among minorities regarding the accessibility of housing.  For instance, in a 2003 survey conducted by Fannie Mae, 78% of Spanish-speaking Latinos55 and 43% of blacks believed that loan applicants were required to have perfect a credit rating in order to qualify for a mortgage; 71% of Spanish-speaking Latinos and 51% of blacks believed that applicants with any debt, or who don’t always pay their bills on time, wouldn’t qualify for a mortgage.56

Discrimination in sales and rentals also continues, as minorities are steered toward homes in segregated neighborhoods. In 2003, an Urban Institute report submitted to HUD concluded that “significant discrimination against African American and Hispanic homeseekers still persists in both rental and sales markets of large metropolitan areas nationwide,” with discrimination against Hispanic renters unchanged since 1989.57 For instance, a fair housing audit in Fresno, California, found that Latino prospective renters encountered discrimination 77% of the time, while African American did so 74% of the time;58 in San Antonio, a rental audit yielded discrimination rates of 68% against African Americans and 52% against Latinos.59  A 2001 housing audit in Houston60 found that: 80% of African Americans, and 65% of Hispanics were treated differently when they sought to rent. The abuse of limited English speaking Latino immigrant communities is widespread in the rental and sale of housing. The immigrant Hispanic community is the fastest growing population in Houston. Abuse is manifested in many ways, such as contracts with exorbitant interest rates on mobile home sales, and the charging of rent based on the number of people in a unit. Recently many apartment complexes have been requiring Spanish speaking applicants to provide additional written information, more than normally asked of ‘Americans,’ in a divisive and potentially discriminatory practice.61

Asian Americans are often overlooked in analyses of housing discrimination, but many also encounter disparate treatment when seeking homes, for example in being informed of housing availability and in obtaining financing assistance.62 The 2003 Urban Institute study shows that Asian Americans face significant and consistent levels of discrimination in searching for housing in large metropolitan areas.63

Native Americans, too, find their housing choices shaped by racial steering. The Urban Institute found a “pattern of treatment that favors whites and ultimately limits the housing choices and increases the cost of housing search for American Indians. Discrimination against American Indian renters ranges from 25.7 percent in New Mexico to 33.3 percent in Minnesota, averaging 28.5 percent across all three states. These levels of discrimination are high compared to national estimates for African Americans, Hispanics, and Asians and Pacific Islanders.  In all three states, American Indian renters were significantly more likely to be denied information about available housing units than comparable whites.”64 Although approximately two-thirds of Native Americans lives outside of reservations or designated tribal areas,65 racial steering still limits individuals’ living choices.

While anti-­‐discrimination enforcement, by HUD and others, ensures that such practices do not reach the pervasive levels of the past, discrimination still contributes to the channeling of minorities into segregated neighborhoods.

V.   Benefits of Integration and Harms of Segregation

The harms of segregation and benefits of integration have been well-documented,66 and touch on all ethnic groups. While Americans increasingly inhabit a multi-ethnic society, opportunities continue to be distributed along racial lines. As a result of continuing inequities, segregation and poverty travel together; race makes itself felt not only in the socioeconomic disparities between individuals, but also though the compound effects of concentrated poverty. Segregation also concentrates other effects of discrimination, such as the disproportionate lack of financial and other services; and perpetuates negative stereotypes, sapping confidence and undermining inter-ethnic cooperation. These harms are not limited to black communities: they also resonate in Latino and Asian American neighborhoods, including those of recent immigrants.

While integration is vital to ameliorating the socioeconomic injustices that follow racial boundaries, it is also an important end for the American community at large. As the Supreme Court held in Gladstone, we all have an interest in “the social and professional benefits of living in an integrated society.”67  The pursuit of residential integration provides richer social interactions, enables a wider base of professional and other contributions to draw upon, and mirrors that of educational settings in that it endeavors to create opportunities to learn from each other.68 Like minorities, whites stand to gain from policies that advance integration. Currently, whites are distinguished as America’s most segregated ethnic group: “the average white person in US cities and suburbs lives in a neighborhood that is overwhelmingly white (about 84%) and thus offers little exposure to other racial or ethnic groups.”69

A.   Concentration of poverty and other financial inequities

Blacks, Latinos, Native Americans, and many Asian nationalities70 on average earn less than whites;71 but it is the distribution of poverty, not the gap between individuals alone, that has a particularly harmful effect on segregated communities. Minorities are much more likely to live in areas of concentrated poverty, meaning that poverty’s social effects reverberate and are amplified throughout their communities.72 Thus, poor blacks and Native Americans were three times more likely than poor whites to live in extreme- poverty areas.  Poor Latinos and Asian Americans were both roughly twice as likely.73

Even when income disparities don’t loom, segregated neighborhoods still suffer more sharply from the effects of poverty because of its distribution. For example, in Riverside- San Bernardino in 2000, “the median household incomes of blacks and whites were $42,600 and $46,600, the smallest black-white difference in any of the 50 metros with the largest black populations. Yet the average black home in Riverside was located in a neighborhood with a poverty rate (18 percent) that exceeded the rate for the corresponding white neighborhood by 42 percent. The former also had 24 percent more unemployment, 24 percent fewer college-educated residents, and 12 percent fewer home- owners.  The median household income for Hispanics, $40,700, also was fairly close to the white median. But the neighborhood poverty rate for the typical Hispanic household exceeded the “white” neighborhood rate by 45 percent.  And the Hispanic neighborhood had 26 percent more unemployment, 35 percent fewer college graduates, and 12 percent fewer homeowners.”74 Segregation combines with structural inequalities to magnify socioeconomic deficits for minorities.

Differences in income derive partially from a spacial mismatch between job sites and minority residences, in part due to lack of business investment in minority neighborhoods. Where blacks, Latinos, and Asian Americans were most segregated from whites residentially, they also experienced the greatest mismatches between their residences and available jobs.75 Additionally, the very fact of segregation limits the job and other opportunities available to minorities by constricting their social networks.76

As with other minorities, the segregation of Asian Americans can concentrate poverty and other socioeconomic detriments. “Model minority” stereotypes mask the reality that Asian Americans are widely diverse, with average levels of income and educational attainment varying significantly among nationalities.77 53.3% of Cambodians, 59.9% of Hmong, 49.6% of Lao, and 38.1% of Vietnamese over the age of 25 have less than a high school education, and while Asian Americans are more likely than whites to have incomes over $75,000, they are also more likely to have incomes under $25,000.78 As with blacks and Latinos, high poverty rates among many Asian American sub-groups mean that communities where those ethnicities cluster are characterized by financial deprivation and its attendant effects.

Segregation also creates barriers to building wealth, as financial discrimination in lending and other services further inflicts communities with high concentrations of minorities. Banks and businesses are less likely to invest in neighborhoods with high concentrations of minorities; such neighborhoods continue to be undercapitalized in comparison to economically comparable white neighborhoods.79 Even controlling for socioeconomic characteristics, minority neighborhoods have higher concentrations of payday loans.80

Racial bias in finance also affects individual borrowers living in segregated communities, as reflected in the distribution of subprime loans: borrowers residing in zip codes whose population is at least 50% minority are 35% more likely to receive loans with “prepayment penalties” than financially similar borrowers in zip codes where minorities are less than 10% of the population; high-income African Americans in predominantly black neighborhoods are three times more likely to receive a subprime purchase loan than low-income white borrowers in predominantly white neighborhoods.81

These disparities are not limited to blacks: blacks, Native Americans, Asian Americans, and Latinos pay higher rates for home mortgage loans than whites do, even controlling for factors such as income and credit history.82  Subprime foreclosures are concentrated  in predominantly minority – particularly black, Latino, and Native American – neighborhoods.83 For example, in one Arizona county, while Latino borrowers held 11.9% of home loans, they were 34.7% of the foreclosures. As a direct result of each foreclosure, the value of surrounding homes also falls.84 Because of such disparities, minority neighborhoods “will be disproportionately likely to suffer vacant and abandoned properties, as well as increases in crime and decreases in property values, which have been found to result from foreclosure activity.”85

B.   Other effects of discrimination on segregated communities

In addition to financial disparities and their attendant effects, high-minority areas suffer from the concentrated effects of myriad forms of discrimination. Such areas are disproportionately exploited in the siting of environmental hazards, even controlling for income levels.86 Minorities are also more likely to be stranded without adequate local services, as municipal incorporation (which generally bundles and delivers those services) often bypasses segregated communities.87 See, e.g., Committee Concerning Community Improvement, et al., v. City of Modesto, County of Stanislaus, Stanislaus County Sheriff (plaintiffs with FHA claim were residents of predominantly-Latino neighborhoods, which were unincorporated “islands” surrounded by Modesto; and which lacked basic infrastructure such as sewer lines, sidewalks, and storm drains);88Lopez v. City of Dallas, Texas89 (alleging that Dallas provided inferior municipal services to residents of Cadillac Heights); Kennedy v. City of Zanesville (alleging decades-long discriminatory government policy of refusing to provide clean water to neighborhood due to its racial makeup). 90

Segregation can exert a particularly harmful influence on children: studies have shown that minority students who attend diverse schools have higher high school and college graduation rates, as well as being aided by the ability to “connect to social and labor networks that lead to higher earning potential as adults.”91 Integrated schools also confer important benefits in the form of lessons about the value of intercultural cooperation.92 The direct link between integrated schools and integrated communities is clear.93 Yet while segregation in schools mirrors residential patterns, it can be even more sharply felt; due to demographic trends, segregation rates among children can be even higher than among the general population.94 School quality is directly impacted by the financial costs of segregation noted above: as incomes and property values are lower, so is the tax base from which schools (and other services) draw.

C.   Residential Distance and the Perpetuation of Stereotypes

While segregation is measured by physical distances, it also reflects social distances that hold members of different races permanently at bay. By facilitating exposure to other cultures and contact among individuals, racial integration can dispel harmful stereotypes and help to dismantle the discriminatory cycles that perpetuate racial distrust. Numerous studies demonstrate that meaningful contact between members of different races significantly reduces prejudice among racial groups.95 For instance, in the educational setting, studies of voluntary integration plans demonstrate that students in racially diverse educational environments feel comfortable with, and prepared to work and interact with, members of other races.96

VI.   Relevance of Integration on Grounds Other Than Race

Just as racial integration is a necessary element of the AFFH duty, integration on other covered grounds is also important. In addition to considering race and ethnicity, AFFH should encompass the fair housing rights of those with disabilities, as well those of various national origins, religions, and familial status, to participate equally in society without the constraints of segregation.

The integration obligation regarding the disabled is reflected in existing law, including Executive Order 13217, which provides that the federal government should ensure placement of individuals with disabilities, whenever possible, in community settings rather than institutionalized environments; HUD’s regulations on discriminatory housing practices, which prohibit “assigning any person to a particular section of a community, neighborhood or development, or to a particular floor of a building, because of race, color, religion, sex, handicap, familial status, or national origin;”97 and criteria used by HUD in the competitive selection process for awarding funds for the development of housing and supportive services for people with disabilities, which are intended to avoid high concentrations of people with disabilities in one project, or on one site, and that reward siting features that are shown to “facilitate [residents’] integration into the surrounding community and promote their ability to live as independently as possible.”98

Furthermore, housing integration efforts amongst people with disabilities has been shown to yield positive effects. During the 1970s, a wave of legal decisions assisted in shifting housing priorities from institutionalization to community based assistance.99 In addition to increasing scrutiny of rights violations occurring in these institutions, studies testing alternatives to mental health treatment demonstrated positive benefits on employment, self esteem and social groups for patients placed in community placement programs.100

Currently, discourse pertaining to people with disabilities emphasizes the goal of “normalization,” which provides for the integration of people with disabilities with “patterns of life and conditions of everyday living which are as close as possible to the regular circumstances and way of life of society.”101 These objectives seek to address both the integrative potential and therapeutic benefits that residential integration of people with disabilities provides.102

The residential integration of persons of various religions similarly offers both inter- and intrapersonal benefits to communities involved.  Exposure to groups from different backgrounds provides a forum for informal learning,103 while emphasis on acknowledging and valuing diversity allows community members to feel comfortable within the broader society.104 A recent British study on faith-based housing associations demonstrated greater cooperation among different faith-based groups, leading to “greater community cohesion,” through increasing “dialogue” and “understanding” between the numerous religious communities.105 Additional studies also illustrate the broad impact of religious diversity on group identification and their contributions to “mainstream culture.”106

VII.   Fair Housing and Immigrant Communities

While is clear that desegregation is a crucial consideration in effectively furthering fair housing, it is also important to be sensitive to the varying needs of different communities. This is clear, for instance, in the context of relatively recent immigrants, who are characterized by abundant variation in socioeconomic status and other attributes. As noted in the section on integration above, average levels of income and educational attainment vary significantly among nationalities, and the character of ethnic “enclaves” can vary broadly as well.

Such neighborhoods, though they are frequently segregated by race and ethnicity, can sometimes be an important stepping stone in immigrants’ path to opportunity. As one scholar has noted, “enclave neighborhoods are especially important in facilitating the socioeconomic incorporation of immigrants faced with language and skill barriers. The concentration of linguistically isolated and poor Asian Pacific Americans affirms this central function of enclave neighborhoods. Moreover, it is consistent with the demography of enclave neighborhoods that a larger share of the foreign-born reside in concentrated neighborhoods relative to other neighborhoods types, with only a small share of homeownership indicating a concentration of rental housing and a denser environment.”107

While recognizing the transitional benefits that these neighborhoods provide, however, it is important to recognize that their segregated character takes a toll on the housing and other opportunities of their residents. Thus, while many Asian Americans tend to be well off relative to other Americans, in New York, Los Angeles, Oakland, and San Francisco, urban Chinatowns “have high rates of poverty and linguistic isolation as well as minimal levels of APA homeownership;” many other enclaves, of both urban and suburban location and of various ethnicities, have similar features.108  This pattern is not all-encompassing: other enclaves, for instance, have more recently been settled by middle- and upper class immigrants, and may be “suburban settings…which are quite affluent indicated by high levels of median household income and APA homeownership.”109 However, in general it has been found that “for blacks, Hispanics, and Asians living in metropolitan areas with a high percentage of foreign-born residents (gateway communities) higher education and, to a lesser extent, higher income are associated with higher rates of residential integration with whites.”110

As with native-born minority communities, segregation of immigrants can concentrate poverty and its effects. The Pew Center has documented sharp declines in non-citizens’ income over the past several years, as well as disproportionate unemployment among Latino immigrants.111  Immigrant communities have the added burden of linguistic isolation. For example, among Asian Americans, based on the 2000 Census, 46% of Vietnamese households are linguistically isolated; 41% of Korean households are linguistically isolated; 35.3% of Chinese households are linguistically isolated; 34.8% of Hmong households are linguistically isolated; 11.1% of Filipino households; and 10.8% of Asian Indian households are linguistically isolated.  By comparison, only 4.1% of all U.S. households are linguistically isolated.112 24% of Asian schoolchildren are ELLs, as are 31% of Latinos.113

While some minorities – especially recent immigrants – do benefit in some ways from living together in close-knit enclaves, research finds there are both “profits” and “deficits” attached to such communities.114 Thus, while immigrants in these neighborhoods enjoy the accessibility of same-language services and ready access to social networks, they are also likely to suffer from poor educational opportunities, lower housing values (partly attributable to designation as an “ethnic neighborhood”), and low- quality, dilapidated infrastructure.115 While some services are more readily accessible, others are lacking. For instance, “[t]he severe underrepresentation of Latinos in fields such as law, the health professions, and teaching has led to a deepening crisis – namely, an astonishing scarcity of educators, legal service providers, and health care providers with the linguistic resources and cultural sensitivity to serve the growing Latino community.”116 Even as “ethnic enclaves offer assistance to new arrivals, from help in finding housing to securing a job and child care, obtaining familiar food, and celebrating religions and cultural traditions….ethnic enclaves can also be constraining, in that they limit contact with English speakers, who tend to have higher incomes, greater educational attainment, and valuable social networks.”117

One influential study on the dynamics of immigrant assimilation found that “[w]hile children from high socioeconomic status immigrant families in suburbs may likely achieve similar levels of success to their [white] native peers, immigrant families in inner cities are likely to be attended by serious difficulties facing the children of their neighboring native minorities…Ethnic enclaves in communities with strong socio- economic resources may provide support to help assimilation into the middle class. In socioeconomically unprivileged communities, however, assimilation may mean downward social mobility (e.g., high school dropouts, youth delinquency, gang affiliation) because those communities lack the resources necessary to help poor families to steer children from local peer pressures and oppositional cultures.”118

Such barriers to achievement often are reflected in local schools. “New immigrant families tend to reside, at least initially, in lower-cost central city and older ring suburban neighborhoods. This trend places newly arriving school-age children – especially Latino and Asian American students – in schools already troubled by declining resources.”119 As discussed above, residential segregation, because it leads to school segregation, can burden immigrant children with linguistic as well as spacial isolation. Language differences also deter parental participation in schools with heavy immigrant enrollment.120

Additionally, children of immigrants gain from integration with peers who are native speakers of English. As a group of experts explained in a recent Supreme Court brief, “integration benefits advance the interests of [English language learners, i.e. ELLs] as well, who experience segregation particularly acutely, and who experience particular challenges and harms as a result of their racial and linguistic isolation in disadvantaged schools. Despite [the Supreme] Court’s holding in Lau v. Nichols, 414 U.S. 563 (1974) that ELL students have a right to a “meaningful and effective” education, a large proportion of ELLs are poorly-served in schools characterized by ethnic and linguistic isolation and concentrated poverty. Because ELLs are so likely to attend school with other ELLs and to live in racially and linguistically isolated neighborhoods, they have few contexts in which to interact with English-proficient peers. Integrated schools can create meaningful opportunities for this peer interaction.”121

Just as it is important to note that immigrant enclaves carry benefits as well as deficits for their inhabitants, it is also important to note that the benefits are not inextricably tied to a high degree of segregation. Among immigrants, degrees of integration fall along a varied spectrum: for instance, among Asian Americans in Los Angeles, Filipinos were most likely to live in racially mixed communities; Vietnamese, to live in majority-white communities; and Koreans, to live in either racially-mixed or majority-white communities.122 Those of Vietnamese and Filipino ethnicity were approximately as likely to live in majority-Latino neighborhoods as they were to live in neighborhoods where the majority were their own ethnicity; and all three groups were relatively unlikely to live in neighborhoods where the majority were Asian Americans of another ethnicity.123 Additionally, the composition of ethnic “enclaves” takes a multiplicity of forms and meanings. Surveys taken in Los Angeles found that “about 40% of Chinese American respondents identified Chinatown as a ‘most’ or a ‘very’ important center of business, cultural and social activity in their daily lives, while almost two-thirds identified the San Gabriel Valley similarly. Well over 80% of Korean- and Vietnamese- Americans either identified Koreatown or Little Saigon as a “very” or “most” important center of life or in fact lived in those neighborhoods. As with the tendency to form close friendships [with members of the same ethnicity, as also captured by this poll], this tendency is notably more visible among the newer immigrant groups.”124 Yet, as noted above, the majority of those respondents live in integrated neighborhoods, and even neighborhoods that may leap to mind as marquis ethnic settings in fact reflect an integrated reality – for example, Los Angeles’ commercially vibrant Koreatown is predominantly Latino and only approximately 20%  Korean.125

In some cases, as patterns of immigrant settlement (particularly among the middle- and upper-class) shift to the suburbs, “traditional enclaves . . . have evolved into a symbolic community serving as cultural centers” while the majority of the population that patronizes them lives elsewhere.126 The symbolic value of such neighborhoods to some Asian-Americans is illustrated by the efforts of California Filipinos to designate official Filipino Towns that could serve as “visible spatial communities,” after urban renewal and gentrification drove residents from sections of cities including San Francisco, Honolulu and Seattle.127 While illustrating the importance of ethnic communities, these recent endeavors are the result not of segregative settlement patterns, but rather of concerted community efforts and of hard-won entrepreneurial and political capital – in other words, enabled by the same sort of access to resources and networks that heightened segregation is likely to impede.

VIII.   Proposed Standards and Criteria for Promoting Integration Across Geographic, Racial, and Other Community Characteristics

HUD’s mandate to AFFH requires that fair housing policy navigate the range of communities across the United States, complete with their myriad demographic features and competing priorities. While applications in the field may vary, AFFH’s foundational objectives – to promote non-discrimination, residential integration, and equal access to the benefits of housing – stand as universal directives. As we have discussed above, segregated communities most often arise because of direct or indirect discrimination and restricted choice. And they most often have a detrimental effect on majority and minority group members alike, across America’s various racial and ethnic communities.  This is not to say that members of minority groups may never rationally choose a neighborhood in which their group predominates, or that no benefits can ever flow from that choice. Rather, the law is clear that neither the Federal government nor its grantees may further segregation or ignore achievable integration in the implementation of their programs and activities.

Accordingly, we believe that AFFH rules should include a strong presumption that decision-making and implementation will seek to foster residential integration and will not perpetuate or deepen existing segregation. This presumption should apply, moreover, across all of the jurisdictions receiving HUD support, and across racial, ethnic, and other covered groups and characteristics. Guidelines should make clear that activities which perpetuate or deepen segregation, or that avoid integrative options, will constitute “red flags” warranting further scrutiny and the expectation that funding will be denied, terminated, or rescinded.

At the same time, however, we believe that the presumption against non-integrative uses could conceivably be rebutted in certain narrow, clearly defined circumstances. If, and only if, a proposed or existing use of Federal funds will both (a) substantially increase choice across identity groups; and (b) substantially increase access to other types of opportunity, we believe that a non-integrative approach might be considered under the following circumstances:

  • Where the fund recipient is a municipal jurisdiction that is overwhelmingly racially homogenous, the use of funds would substantially increase choice and opportunity for residents of low-opportunity neighborhoods, and no metropolitan or regional approaches are possible. In other words, where there is “no one to integrate with,” and resources would achieve other important fair housing goals. For example, Community Development Block Grants could be used for the rehabilitation of structures and the construction of public facilities in such areas.
  • Where funds would increase choice and access to opportunity, would support the transition of new immigrants into American and local society, and would simultaneously facilitate the longer-term integration of community members into the broader jurisdiction or region. That is, jurisdictions may be able to use HUD assistance to maximize transitional assistance to new immigrants in existing immigrant “launch pad” communities.
  • Where funds are unlikely to have either a positive or negative impact on integration, but will increase choice and opportunity in low-opportunity segregated neighborhoods. This circumstance is most likely to arise when funds are used for purposed other than affordable housing creation. Accordingly, these principles do not prevent HUD from investing in the improvement of majority- minority neighborhoods, for instance through improved infrastructure or connection to municipal services. Examples of programs through which such funds could be allocated include Community Development Block Grants and the Initiative for Renewal Communities and Urban Empowerment Zones, as well the Public Housing Capital Fund and (working in tandem with the Department of Energy) the Weatherization program.

The most difficult question, in our view, arises when a majority-white jurisdiction seeks to create or expand the availability of affordable housing within a segregated, low- opportunity neighborhood, based in part on expressed demand from that community’s residents – in other words, where minority residents’ expressed “choice” is for expanded housing in their existing, segregated neighborhood.

In our view, HUD funds should rarely if ever be used for this purpose. First, as noted, research shows that people of color typically prefer integration over segregation, especially under low-opportunity conditions. Second, the Fair Housing Act and AFFH obligations do not exist to facilitate minority preference but, rather, to ensure non- discrimination, integration, and access to opportunity – conditions that do not exist in the above scenarios. And third, experience shows that there will frequently be integrative alternatives available to the jurisdictions, such as siting affordable housing at the juncture of existing majority and minority neighborhoods, and in high opportunity locations.

Again, this conclusion does not prevent the use of HUD funds to improve the choices and opportunity available to segregated communities. Rather, it prevents the use of these funds to perpetuate or deepen residential segregation.

Finally, it is worth stating that access to HUD programs, activities, and assistance is a limited resource that must be allocated strategically by the Department and consistent with applicable statutory priorities and parameters. Avoiding applications that would undermine the national interest in integrated communities is an important part of that interest.

IX.   The Practical Importance of Attending to Racial Dynamics

Experience shows that failing to consider racial dynamics, or using socioeconomic status as a proxy for race, will frustrate the achievement of the Department’s mission and mandate. Programs implemented in the past have often been missed opportunities for furthering integration, as insufficient consideration was given to racial dynamics. For instance, the Massachusetts Low and Moderate Income Housing Act (nicknamed the Anti-Snob Zoning Law) successfully facilitated the construction of subsidized housing throughout the state by allowing developers to bypass local zoning practices. However, the law has been criticized for benefiting mostly whites and for having “exacerbated racial segregation:” only one-third of the housing was for families, while the remainder was occupied by elderly (white) local residents.128

In the Mount Laurel Cases, the New Jersey Supreme Court struck down a local exclusionary zoning ordinances and required towns in the state to construct their “fair share” of affordable housing.129 In the wake of the remedial phase, however, it was found that minorities were underrepresented in the new inclusionary developments, despite heavy demand. Although desegregation had been a stated goal of the program, it was an unrealized one; segregation in New Jersey has since increased.130The resulting construction chiefly “helped low-income suburbanites retain residency in their areas rather than open up new opportunities for urban people of color.”131 According to opportunity expert John Powell, New Jersey faltered by applying “the false premise that race issues can be reduced to poverty issues,” and mistakenly left the issue of residential segregation to the local authorities’ discretion.132

In contrast, Montgomery County’s inclusionary zoning law, requiring new large developments to provide affordable units, has primarily benefited minorities; the Maryland county is now regarded as “one of the nation’s most racially and economically integrated communities.” Although the program does not apply explicit racial criteria, it includes specific mechanisms to achieve integration. It succeeds by giving the local housing authority (which maintains a long waiting list of people of color) control over a large portion of the units; and by distributing the units by a widely-advertised lottery (thus avoiding the discriminatory tendencies of the housing market).  In other cities, similar ordinances lacking such features have failed to ease segregation.133

Especially as we become an increasingly diverse society, it is important that HUD help integrated neighborhoods to flourish. Multifaceted approaches to sustaining integration should be an important consideration in furthering fair housing. An examination of cities in various regions of the United States found that stable, diverse communities typically exhibit common features, including the co-existence of multiple ethnic groups, attractive infrastructure (such as high-quality housing stock), the availability of affordable housing, and relationships with banks and real estate agents.  Governmental forces can help nurture such communities, by ensuring access to financial support (such as loans for housing maintenance and business incubation), fostering diversity through anti- discrimination laws, public education measures, and other means.134 Additionally, efforts to integrate individuals should be sensitive to their needs. In terms of countering prejudice, integration has the strongest impact when it results in “meaningful contact,” that is, when “members of different groups have equal status, common goals, are in a cooperative or interdependent setting, and have support from authorities.”135 To the extent possible, HUD and its grantees should coordinate their work with that of other agencies 136 to facilitate integration: for example, with language instruction programs; inclusive vocational training and apprenticeship tracks; and by providing funding to inter-­‐ethnic community organizations.

X.  Additional Considerations

HUD’s AFFH imperative to further integration touches upon all HUD-funded activities, as well as all “programs and activities relating to housing and urban development” that are administered within the purview of Federal regulatory or supervisory authority.137 In addition to the principles described in Section VIII, a number of complimentary strategies can be used to further integration.  For instance:

Section 8 Housing Choice Voucher Programs:

HUD should take steps to expand housing options for Section 8 voucher recipients, the majority of whom are minorities,138 in order to further integration by expanding individual choices. Portability requirements among public housing authorities are frequently discretionary, and can raise hurdles for families who seek to move between jurisdictions (even though PHAs are required not to discourage families from making use of portability).139  Procedural obstacles to movement among PHA jurisdictions should be analyzed and addressed.140 For example, among other strategies, HUD should consider implementing regionally-based administration of Section 8 programs in the place of PHA-run programs, to facilitate mobility and counteract NIMBYism among individual PHA jurisdictions.141 Currently, the Section 8 Guidebook142 states that PHAs must provide families with information about available neighborhoods within the PHA’s jurisdiction, as well as about the advantages of moving to a low-poverty neighborhood, but does not require that PHAs provide an in-depth counseling program. Counseling, which has been shown to have measurable benefits, should be provided for both voucher landlords and recipients.143 HUD should also further integration in Section 8 voucher use by affirmative marketing of rental openings in areas of low minority concentration.

HOME Investment Partnerships Program:

Siting of HUD-funded housing should require a comprehensive Opportunity Impact Statement,144 which would include an explicit inquiry into the proposed project’s effect on racial and socioeconomic integration, choice, and access to opportunity. In determining whether a project is to be located in an area of minority concentration, both local and regional data should be considered. Public input should be solicited from potentially impacted communities, including individuals of limited English proficiency. In addition to furthering fair housing, efforts to include Asian Americans in these planning processes should comport with President Obama’s Executive Order restoring the White House Advisory Commission and Interagency Working Group to address issues concerning the Asian American and Pacific Islander community, requiring HUD to, among other things, “identify Federal programs in which AAPIs may be underserved and improve the quality of life for AAPIs through increased participation in these programs…[to] increase public-sector, private-sector, and community involvement in improving the health, environment, opportunity, and well-being of AAPIs; [and to] foster evidence-based research, data-collection, and analysis on AAPI populations and subpopulations, including research and data on public health, environment, education, housing, employment, and other economic indicators of AAPI community well being.”145

Community Development Block Grants:

As with other HUD-funded projects, the CDBG allocation process should encompass an Opportunity Impact Statement146 that explicitly addresses integration.147  HUD should ensure that grantees comply with requirements that they enact plans for diverse citizen participation in planning decisions, as indicated in the Fair Housing Guidebook.148 These plans should encompass outreach to immigrant groups, including people of low English proficiency. As informed by this citizen participation and by robust data collection measures, CDBG spending should redress the effects of discrimination and segregation by ameliorating inequities in service provision, infrastructure, and other programs. HUD should also ensure that CDBG recipients comply with fair housing and nondiscrimination laws, as specified in its Toolkit on Crosscutting Issues for CDBG.149 Neighborhood Stabilization Program funds (a component of CDBG) should be used to expand opportunities in integrated areas.

Increased Outreach and Anti-Discrimination Enforcement for Ethnic Groups:

To promote greater choice in housing, fair housing enforcement funds should be increased and targeted to counter discrimination against all minorities. While blacks suffer the highest reported rates of housing discrimination, enforcement efforts frequently fail to reach other groups. For example, “[t]he inadequacy of efforts to engage Latino communities in the enforcement process and poor federal funding for nonprofit fair housing organizations that serve Latino communities raise further barriers [to fair housing].  Finally, the under-representation of Latinos in the enforcement system itself is a central concern, as is the perceived lack of responsiveness to Latinos at various stages within that system.  Consequently, many Latinos are reluctant to file claims, believing that nothing will come of them . . . Native American advocates describe urban Indians as a forgotten minority and contend that government outreach to this group is minimal, leaving many Native Americans unaware of existing support services.”150 For recent immigrants, HUD’s Fair Housing Guide encourages Grantees to study “problems faced  by immigrant populations whose language and cultural barriers combine with lack of affordable housing to create unique fair housing impediments;” HUD should ensure that meaningful efforts are made to address such impediments.151

XI.   Conclusion

As HUD formulates AFFH guidelines for today’s communities, integration remains a compelling mandate.  HUD should assess ways in which it can further integration for all ethnicities, particularly through improved data collection and robust impact assessment practices. In doing so, HUD will advance key aims of the Fair Housing Act, as well as endowing communities with the lasting benefits of both diversity and opportunity. The Opportunity Agenda would welcome the chance for additional discussion regarding these and other elements of fair housing and opportunity for all.


Notes:

1. U.S. Census Bureau, Rankings and Comparisons Population and Housing Table 1.

2. U.S. Dep’t of Commerce, Census 2000 Brief: The Asian Population 1 (Feb. 2002).

3. 42 U.S.C. § 3608(e)(5) (2010).

4. 42 U.S.C. § 3601 (2010).

5. Evans v. Lynn, 537 F.2d 571, 577 (1975) (citing 114 CONG. REC. 9563 (statement of Rep. Celler)).

6. Trafficante v. Metro. Life Ins. Co., 409 U.S. 205, 211 (1972) (citing 114 CONG. REC. 3422 (statement of Sen. Mondale)).

7. Id.

8. Gladstone, Realtors v. Bellwood, 441 U.S. 91, 112 (1979).

9. Havens Realty Corp. v. Coleman, 455 U.S. 363, 376-7 (1982) (acknowledging Gladstone’s precedent that standing could be granted on grounds of deprivation of the “benefits of interracial associations that arise from living in integrated communities free from discriminatory housing practices,” but remanding due to insufficiency of allegations on other grounds).

10. Linmark Assocs., Inc. v. Twp. of Willingboro, 431 U.S. 85, 95 (1977).

11. 114 CONG. REC. 2528; see also 114 CONG. REC.   2281.

12. See Clients’ Council v. Pierce, 711 F.2d 1406, 1425 (8th Cir. 1983).

13. Otero v. New York City Hous. Auth., 484 F.2d 1122, 1133-35 (2d Cir. 1973); Park View Heights v. City of Black Jack, 605 F.2d 1033, 1036 (8th Cir. 1979) (internal cites omitted), cert. denied, 445 U.S. 905 (1980); Metro. Hous. Dev. Corp. v. Vill. of Arlington Heights, 558 F. 2d 1283, 1290 (7th Cir. 1977), cert. denied, 434 U.S. 1025 (1978); Huntington Branch NAACP v. Town of Huntington, 844 F. 2d 926 (2d Cir.), aff’d per curium, 488 U.S.

14. Segregation of Asians and Latinos has also been addressed in the educational setting, as in: Gong Lum v. Rice, 275 U.S. 78, 85 (1927); Cisneros v. Corpus Christi Indep. School District, 324 F. Supp. 599 (S.D. Tex. 1970); Keyes v. School District No. 1, 413 U.S. 189 (1973); Gonzales v. Sheely, 96 F. Supp. 1004 (D. Ariz. 1951); Hernandez v. Texas, 347 U.S. 475, 479-80 (1954); Santamaria v. Dallas Indep. Sch. Dist., 2006 U.S. Dist. LEXIS 83417 (N.D. Tex. Nov. 16, 2006).

15. 24 C.F.R. §§ 200.600 et seq. (2010).

16. 24 C.F.R. § 941.202 (2010); see also 24 § CFR 983.57 (2010), for similar language governing site selection for project-based voucher programs.  See HUD NOTICE: H-09-19, issued Dec. 7, 2009, stating that since 2003, “‘[m]inority neighborhood (area of minority concentration)’ has been defined as one where any one of the following statistical conditions exist: (1) the neighborhood’s percentage of persons of a particular racial or ethnic minority is at least 20 percentage points higher than the percentage of that particular racial or ethnic minority in the housing market area; (2) the neighborhood’s total percentage of minority persons is at least 20 percentage points higher than the total percentage of minorities in the housing market area; (3) in the case of a metropolitan area, the neighborhood’s total percentage of minority persons exceeds 50 percent of its population. The term ‘non-minority area’ is defined as one in which the minority population is lower than 10 percent.” Note that “[s]o far as the court can determine, nothing in any statute, regulation, or policy, or the administrative record, defines ‘area of minority concentration’ or ‘racially mixed area.’ The lack of a statutory or regulatory definition leaves substantial room for HUD to interpret these terms.” Glendale Neighborhood Ass’n v. Greensboro Hous. Auth., 956 F. Supp. 1270 (M.D.N.C. 1996). See also Philip Tegeler, The Persistence of Segregation in Government Housing Programs, in Xavier de Souza Briggs, ed., THE GEOGRAPHY OF OPPORTUNITY (Brookings Institution Press 2005).

17. 24 C.F.R. § 1.4(b)(1)(iii) (2010).

18. Shannon v. HUD, 436 F.2d 809, 819 (3d Cir. 1970); see also Jaimes v. Toledo Metro. Hous. Auth., 715 F. Supp. 835, 839 (N.D. Ohio 1989); Project B.A.S.I.C. v. Kemp, 776 F. Supp. 637, 642 (D. R.I. 1991).

19. Gautreaux v. Romney, 448 F.2d 731 (7th Cir. 1971); United States ex rel. Anti-Discrimination Ctr. of Metro N.Y., Inc. v. Westchester County, 668 F. Supp. 2d 548 (S.D.N.Y. 2009).

20. Shannon v. HUD, 436 F.2d 809 (3d Cir. 1970). See also: Graves v. Romney, 502 F.2d 1062 (8th Cir. 1974); Altshuler v. HUD, 686 F.2d 472 (7th Cir. 1982); Project BASIC v. Kemp, 776 F. Supp. 637, 642-3 (D. R.I. 1991) (internal cites omitted); Pleune v. Pierce, 765 F. Supp. 43, 47 (E.D.N.Y. 1991).

21. NAACP v. Sec’y of Hous., 817 F.2d 149, 155 (1st Cir. 1987).

22. See Shannon v. HUD, 436 F.2d 809 816, noting that “in 1949 the Secretary…possibly could act neutrally on the issue of racial segregation. By 1964 he was directed…to prevent discrimination…In 1968 he was directed to act affirmatively to achieve fair housing.”

23. Id., citing Otero v. N.Y.C. Hous. Auth.. 484 F.2d 1122, 1134 (2d Cir. 1973).

24. Thompson v. HUD, 348 F. Supp. 2d 398 (D. Md. 2005). See also Florence Wagner Roisman, Affirmatively Furthering Fair Housing in Regional Housing Markets: The Baltimore Public Housing Desegregation Litigation, 42 Wake Forest L. Rev. 333 (Summer 2007).

25. Langlois v. Abington Hous. Auth., 234 F. Supp. 2d 33, 77 (D. Mass. 2002); United States ex rel. Anti- Discrimination Ctr. of Metro New York, Inc. v. Westchester County, 668 F. Supp. 2d 548, 564 (S.D.N.Y. 2009).

26. Cf Walker v. City of Mesquite, 169 F.3d 973 (5th Cir. 1999), striking down a racially-based siting requirement for new housing in a Texas desegregation decree. The court found that the requirement that new construction be sited in majority-white areas was not narrowly tailored, as a formula based on poverty rates would be effective. See also discussion of Walker by Philip Tegeler, The Future of Race-Conscious Goals in National Housing Policy, in PUBLIC HOUSING AND THE LEGACY OF SEGREGATION (Margery A. Turner et al. eds., The Urban Institute Press 2009).

27. United States ex rel. Anti-Discrimination Ctr. of Metro New York, Inc. v. Westchester County, 668 F. Supp. 2d 548, 564 (S.D.N.Y. 2009).

28. HUD, Fair Housing Planning Guide at 2-28.

29. Id. at 5-17.

30. Id. at 2-11.

31. Id. at 3-6.

32. Trafficante v. Metro. Life Ins. Co., 409 U.S. 210 (1972) (while minority groups were damaged the most from discrimination in housing practices, the proponents of the legislation emphasized that those who were not the direct objects of discrimination had an interest in ensuring fair housing as they too suffered).

33. See, e.g., Gladstone, Realtors v. Bellwood, 441 U.S. 91 (1979); United States v. Sec’y of HUD , 239 F.3d 211 (2d Cir. 2001); Davis v. New York City Hous. Auth., 1992 U.S. Dist. LEXIS 19965 (S.D.N.Y. Dec. 30, 1992); NAACP v. City of Kyle, 2006 U.S. Dist. LEXIS 51226 (W.D. Tex. June 16, 2006); Hispanics United v. Vill. of Addison, 988 F. Supp. 1130 (N.D. Ill. 1997); Huntington Branch NAACP v. Town of Huntington, 844 F.2d 926, 937 (2d Cir. 1988); Anti-Discrimination Ctr. of Metro New York, Inc. v. Westchester County, New York, 668 F. Supp. 2d 548, 564 (S.D.N.Y. 2009); United Farmworkers of Florida Hous. Project, Inc. v. Delray Beach, 493 F.2d 799 (5th Cir. 1974); Jaimes v. Toledo Metro. Hous. Auth., 715 F. Supp. 835 (N.D. Ohio. 1989).

33. 24 C.F.R. §§ 200.600 et seq. (2010).

34. See Green v. County Sch. Bd., 391 U.S. 430 (1968); Bailey v. Ryan Stevedoring Co., Inc., 528 F.2d 551 (5th Cir. 1976).

35. See Shelley v. Kraemer, 334 U.S. 1 (1948); NAACP v. Town of Huntington, 844 F. 2d 926 (2d Cir. 1988).

36. Eva Dick, Residential Segregation of Immigrants on St. Paul’s West Side, 38 CURA REP. 1 (Spring 2008) at 10.

37. Id.

38. Camille Zubrinsky and Lawrence Bobo, Prismatic Metropolis: Race and Residential Segregation in the City of the Angels”, 25 SOC. SCI. RES. 335, 339; (1996) (citing Denton and Massey, 1988; Massey and Fong, 1990.); see also Ingrid Gould Ellen, Continuing Isolation: Segregation in America Today, in SEGREGATION: THE RISING COSTS FOR AMERICA 271 (James H. Carr et al. eds., 2008).

39. Maria Krysan & Reynolds Farley, The Residential Preferences of Blacks: Do They Explain Persistent Segregation?, 80 SOC. FORCES 3, 937-80 (2002).

40. Camille Z. Charles, Can We Live Together?, in The Geography of Opportunity at 59-61 (William J. Wilson et. al. eds., Brookings Institution Press 2005).

41. Lawrence Bobo, Attitudes on Residential Integration: Perceived Status Differences, Mere In-Group Preference, or Racial Prejudice?, 74 SOC. FORCES 3, 883-909 (1996).

42. David Card et al., TIPPING AND THE DYNAMICS OF SEGREGATION IN NEIGHBORHOODS AND SCHOOLS  25 (2006).

43. Id.

44. Morrison Wong, Chinese Americans, in ASIAN AMERICANS: CONTEMPORARY TRENDS AND ISSUES 137 (Pyong Gap Min ed.   2006).

45. Ellen, supra fn 38, at 272.

46. “In all likelihood, there are reciprocal effects with attitude shaping location decisions to as great an extent as resources, information, and other considerations allow, while the experience of particular neighborhoods, group relations, and status and service considerations then come to reshape attitudes.” Bobo, supra fn 41, at 900, 902 (citing Galster 1989; Sigelman & Welch 1993).

47. Id. at 904.

48. DOUGLAS S. MASSEY & NANCY A. DENTON, AMERICAN APARTHEID: SEGREGATION AND THE MAKING OF THE UNDERCLASS 91  (Harvard  University  Press 1993).

49. Id. at 104-105; describing study of how loan distribution had negative correlation with black populations in Dallas and Milwaukee neighborhoods, at 107.

50. Steven W. Bender, Knocked Down Again: An East L.A. Story, 12 HARV. LATINO L. REV. 109, 114-118 (2009). Covenants and their effects are also described in, E.g., Kevin R. Johnson, Hernandez v. Texas: Legacies of Justice and Injustice, 25 CHICANO-LATINO L. REV. 153 (discussing history of restrictive covenants and other discrimination against Japanese-Americans and Mexican Americans in California and Texas); see also Hernandez v. Texas, 347 U.S. at 471, 481.

51. See In re Lee Sing, 43 F. 359 (N.D. Cal. 1890).

52. John Yen Wong, Still Separate and Unequal: A Public Hearing on the State of Fair Housing in America.

53. Amicus brief of AAJC et el. in Parents Involved v. Parents Sch. Distr. No. 1, 551 U.S. 701 (2007) (citing  ART  CHIN & DOUG CHIN, UPHILL: THE SETTLEMENT & DIFFUSION OF THE CHINESE IN SEATTLE,  39 (Shorey Original Publication 1973) (“[T]he Chinese moved into the First Hill and Beacon Hill areas [located in the central district] only because they were the only districts not covered by the restrictive covenant.”).

54. Nat’l Fair Hous. Alliance, 2008 Fair Housing Trends (2008).

55. Defined as those who spoke primarily Spanish at home.

56. Kathleen Engel & Patricia McCoy, From Credit Denial to Predatory Lending, in SEGREGATION: THE RISING COSTS 94 (James H. Carr et. al. eds., Routledge 2008).

57. Margery A. Turner et. al, Discrimination in Metropolitan Housing Markets: Phase 2 – Asians and Pacific Islanders (March 2003), at ii

58. Fair Hous. Council of Fresno County, Fair Housing Audit of Fresno County (1995); see also John Yinger, Evidence on Discrimination in Consumer Markets, 12 J. OF ECON. PERSP. 2, (1998).

59. San Antonio Fair Hous. Council, San Antonio Metropolitan Area Rental Audit (1997).

60. U.S. Bureau of the Census, Census 2000. (In 2000, Houston was 42% white, 25% black, and 37% Latino).

61. Daniel Bustamante, Executive Director of the Greater Houston Fair Housing Center, Testimony on Housing Discrimination in Houston, TX (hearings conducted by National Commission on Fair Housing and Equal Opportunity, 2008) at 2.

62. Turner et. al., supra fn 57, at 3-8.

63. Id.

64. Margery A. Turner et. al, Discrimination in Metropolitan Housing Markets: Phase 3 – Native Americans (Sept. 2003), at iii.

65. U.S. Bureau of the Census, We the People: American Indians and Alaska Natives in the United States (2006; based on 2000 Census data), at 14;

66 See, e.g., MASSEY & DENTON, supra fn 48.

67. Gladstone, Realtors v. Bellwood, 441 U.S. 91, 112 (1979).

68. As one group of advocates phrased it in that context, “Ample studies have shown that exposure to students from a wide range of backgrounds enhances the educational experiences of all students, whether Caucasian American or minority. Thus, Asian Pacific American students, and all other students, benefit from racial and ethnic diversity… Achieving such diversity constitutes a compelling governmental interest.” Brief of Amici Curiae National Asian Pacific American Legal Consortium, Asian Law Caucus, Asian Pacific American Legal Center, et al. in support of respondents in Grutter v. Bollinger, et al., 539 U.S. 306 (2003) and Gratz, et al. v. Lee Bollinger, et al., 539 U.S. 244 (2003), on Writ of Certiorari to the United States Court of Appeals for the Sixth Circuit, in 10 ASIAN L.J. 295.

69. Xavier de Souza Briggs, More Pluribus, Less Unum? in THE GEOGRAPHY OF OPPORTUNITY at 24 (Brookings 2005).

70. Stacey Lee, The Truth and Myth of the Model Minority: the Case of Hmong Americans, in NARROWING   THE ACHIEVEMENT GAP 171 (Paik et. al. eds.  2007).

71. See MEIZHU LUI ET AL., THE COLOR OF WEALTH (2006).

72. See The State of Opportunity in America (The Opportunity Agenda 2006) at 118-19.

73. Lisa Robinson and Andrew Grant-Thomas,  Race, Place, and Home: A Civil Rights and Metropolitan Opportunity Agenda (Civil Rights Project 2004); (citing Jargowsky 2003).

74. Id. at 22.

75. Id. at 25.

76. See MASSEY & DENTON, supra fn 48, at 109, 161.

77. ANGELO ANCHETA,  RACE, RIGHTS, AND THE ASIAN AMERICAN EXPERIENCE 113 (Rutgers Univ.  Press 1998); see also Robert Teranishi, Southeast Asians, School Segregation, and Postsecondary Outcomes, (NYU Commission on Asian American Research in Higher Education 2004).

78. Lee, supra fn 70, at 172.

79. Id. at 135, 206 (citing data revealed by the Home Mortgage Disclosure Act).

80. JAMES H. CARR & NANDINEE K. KUTTY, SEGREGATION: THE RISING COSTS FOR AMERICA, at 121-23 (Routledge 2008).

81. Nat’l Fair Hous. Alliance, supra fn 54, at 22.

82. Engel & McCoy, supra fn 56, at 92.

83. Id. at 97-98.

84. Id. at 100.

85. Furman Center, The High Cost of Segregation: Exploring the Relationship Between Racial Segregation and Subprime Lending (November 2009); see also Jarrett Murphy, Race and Space: Segregation and Foreclosure in Huffington Post.

86. See, e.g., discussion in Mary Frances Berry et al., Not in My Backyard: Executive Order No. 12,898 and Title VI as Tools for Achieving Environmental Justice, (U.S. Comm’n on Civil Rights, 2003) at 13 et seq.

87. Nat’l Research Council, Governance and Opportunity in Metropolitan America 31 (Altshuler et. al. eds. 1999) (citing Burns 1994).

88. Comm. Concerning Cmty. Improvement v. City of Modesto583 F.3d 690 (9th Cir. 2009).

89. Lopez v. City of Dallas,  2004 US Dist. Lexis 18220 (ND Tex. Sept. 9, 2004).

90. Kennedy v. City of Zanesville, 505 F. Supp. 2d 456 (SD Ohio 2007).

91. Nat’l Comm’n on Fair Hous. and Equal Opportunity, The Future of Fair Housing (Dec. 2008) at 2. See also DENTON & MASSEY, supra fn 48, at 169 (discussing the positive results of school integration as a result of housing integration achieved by Gautreaux v. Chicago Hous. Auth.).

92. See Advancing Equality Amicus Brief; “in Jefferson  County, about 90% of the students report “that exposure in the curriculum to diverse cultures and experiences has helped them to better understand points of view different from their own,” citing Kurlaender & Yun, Is Diversity a Compelling Educational Interest? Evidence from Jefferson County, in DIVERSITY CHALLENGED: EVIDENCE ON THE IMPACT OF AFFIRMATIVE ACTION 111, 123 (G. Orfield & M. Kurlaender eds. 2001).

93. See, e.g., discussion in Gautreaux v. Chicago Housing Authority, 503 F.2d 930; Keyes et al. v. School District No. 1, Denver, CO. et al., 413 US 189 (1973); the Kerner Comm’n Report also noted the connection, Schwemm at 5-5.

94. McArdle, Race, Place, and Opportunity: Racial Change and Segregation in the Chicago Metropolitan Area: 1990 – 2000, Part I, at 24 (The Civil Rights Project at Harvard University).

95 Thomas F. Pettigrew & Linda R. Tropp, A Meta-Analytic Test of Intergroup Contact Theory, 90 J. OF PERSONALITY & 11 SOC. PSYCH. 751 (2006) (reviewing and analyzing over 500 empirical studies).

96. Linda Hamilton Krieger, Civil Rights Perestroika: Intergroup Relations After Affirmative Action, 86 CAL. L. REV. 1251, 1276-2191 (1998).

97. 24 C.F.R. § 100.70(c)(4) (2010).

98. 72 Fed. Reg. 11683, 11725 (Mar. 13, 2007).

99. Henry Korman, Clash of the Integrationists: The Mismatch of Civil Rights Imperatives in Supporting Housing for People with Disabilities, 26 ST. LOUIS U. PUB. L. REV. 3, 14-15 (2007).

100. Leonard I. Stein & Mary Ann Test, Alternative to Mental Hospital Treatment, 37 ARCH GEN PSYCH, 394-5 (1980).

101. Arlene S. Kanter, A Home of One’s Own: The Fair Housing Amendments Act of 1988 and Housing Discrimination Against People with Mental Disabilities, 43 AM. U.L. REV. 925, 961.

102. John v. Jacobi, Federal Power, Segregation and Mental Disability, 39 HOUS. L. REV. 1231, 1253 (2003).

103. Regents of the Univ. of CA v. Bakke, 438 U.S. 265, 313 fn 48 (1978).

104. Marjorie A. Silver, Rethinking Religion and Public School Education, 15 QLR 213, 227-228 (1995).

105. John Flint, Faith and Housing in England: Promoting Community Cohesion or Contributing to Urban Segregation?, 36 J. OF ETHNIC AND MIGRATION STUD. (2) 255, 269.

106. Tseming Yang, Race, Religion and Cultural Identity: Reconciling the Jurisprudence of Race and Religion, 73 IND. L.J. 119, 130-3.

107. Tarry Hum & Michela Zonta, Residential Patterns of Asian Americans, in TRANSFORMING RACE RELATIONS 209 (Paul M. Ong, ed. 2000).

108. Id. at 209- 213.

109. Id. at 210- 213; see also Wong, Morrison, Chinese Americans, in ASIAN AMERICANS: CONTEMPORARY TRENDS AND ISSUES 135 (Pyong Gap Min ed.   2006).

110. Briggs, supra fn 69, at 27 (citing Clark and Blue 2004).

111. Rakesh Kochhar, Decline in Income for Non-Citizen Immigrant Households, 2006-2007 (Pew Center 2008).

112. “Linguistically isolated” refers to a household in which no one over the age of 14 speaks English “very well,” (i.e. English proficient); AALDEF, Left in the Margins: Asian American Students & the No Child Left Behind Act (2008).

113. Id.

114. Eva Dick, Residential Segregation of Immigrants on St. Paul’s West Side, 38 CURA REP. 1 (Spring 2008).

115. Id.

116. Brief of Latino Organizations as Amici Curiae, Parents Involved v. Seattle Sch. Dist. No. 1, 551 U.S. 701 (2007) at 27-28 (nos. 05-908, 05-915).

117. Briggs, supra fn 69, at 25.

118. Min Zhou, Divergent Origins and Destinies, in NARROWING THE ACHIEVEMENT GAP 125 (Paik et. al. eds. 2007).

119. Deborah McKay and Jeffrey Vincent, Housing and Education, in SEGREGATION: THE RISING COSTS FOR AMERICA 133 (James H. Carr et al. eds., 2008).

120. See, e.g., Lee, supra fn 70, at 181.

121. Brief of Latino Organizations as Amici Curiae, Parents Involved v. Seattle Sch. Dist. No.1, 551 U.S. 701 (2007),  at 25.

122. T. Lee, Racial Attitudes and the Color Line(s) at the Close of the Twentieth Century, in TRANSFORMING RACE RELATIONS 113 (Paul M. Ong, ed. 2000) (findings are based on Los Angeles Times polls conducted in stages through 1997).

123. Id.

124. Id. at 114.

125. Pyong Gap Min, Korean Americans, in ASIAN AMERICANS: CONTEMPORARY TRENDS AND ISSUES 237 (2006).

126. Tarry Hum & Michela Zonta, Residential Patterns of Asian Americans, in TRANSFORMING RACE RELATIONS 209 (Paul M. Ong, ed. 2000).

127. Id. at 208, describing how “[i]n the mid-1990s, there was “strong interest among Bay Area Filipinos to create a visible spatial community that will generate a political presence as well as celebrate Filipino cultural heritage and practices. The development plans include[d] senior housing to accommodate those who may need easy access to the conveniences of ethnic services and products.” Community efforts in  1980s and 90s Los Angeles resulted in the designation of a Historic Filipino Town, and a coalition of  Filipino nonprofits was involved with the development of the SoMa area in San Francisco. See also Augusto Espiritu, Filipino Americans, in MULTICULTURALISM IN THE UNITED STATES: A COMPARATIVE GUIDE TO ACCULTURATION AND ETHNICITY (John D. Buenker, ed., Greenwood Press 2005).

128. Myron Orfield, Land Use and Housing Policies to Reduce Concentrated Poverty and Racial Segregation, 33 FORDHAM URB. L. J. 877 (2006) (citing Roisman, Opening the Suburbs to Racial Integration: Lessons for the 21st Century, 23 W. NEW ENGLAND L. REV. 65, 73-75 (2001)).

129. Southern Burlington County NAACP v. Mt. Laurel, 92 N.J. 158 (N.J. 1983).

130. Orfield, supra fn 128, at 13-14.

131. Id. at 15.

132. Id.

133. Id. at 16.

134. Philip Nyden et al., The Emergence of Stable Racially and Ethnically Diverse Communities: A Case Study of Nine U.S. Cities, 8 HOUS. POL’Y DEBATE 491 (1997); see also Orfield, supra fn 128, at 19-21. 135 C. Aberson, C. Shoemaker, & C. Tomolillo, Implicit Bias and Contact: The Role of Interethnic Friendships, 144 J. OF SOC. PSYCHOL. 335, 335 (2004).

136. See Nat’l Comm’n on Fair Hous. and Equal Opportunity, The Future of Fair Housing (Dec. 2008) at 52, proposing that a revived “President’s Fair Housing Council should select two to three pilot projects to develop a track record and demonstrate the viability of cross-agency collaboration in support of fair housing.”

137. See Exec. Order No. 12892, at Sec. 1 (1994); 42 U.S.C. § 3608(d) (1968).

138. HUD, A Picture of Subsidized Households (2008).

139. HUD, Chapter 2: Expanding Housing Opportunities and Mobility, in Housing Choice Voucher Program Guidebook 2.8 (2008).

140. See Mary Cuningham & Philip Tegeler, “Portability and Housing Choice: Preserving the Right to Inter- Jurisdictional Portability Using a Central Reserve Fund, in Keeping the Promise: Preserving and Enhancing Housing Mobility in the Section 8 Housing Choice Voucher Program (Poverty & Race Research Action Council 2005).

141. See Philip Tegeler, Housing Segregation and Local Discretion, 3 J.L. & POL’Y 209, 230 (1994).

142. HUD, supra fn 139.

143. John Goering, The MTO Experiment, in The Geography of Opportunity 141 (Brookings 2005). See also Gene Rizor, Essential Elements of Successful Mobility Counseling Programs, in Keeping the Promise: Preserving and Enhancing Housing Mobility in the Section 8 Housing Choice Voucher Program (Poverty & Race Research Action Council 2005).

144. See The Opportunity Impact Statement: Expanding the American Dream (The Opportunity Agenda).

145. Exec. Order No. 13515: Increasing Participation of Asian Americans and Pacific Islanders in Federal Programs (October 14, 2009).

146 See The Opportunity Impact Statement: Expanding the American Dream (The Opportunity Agenda).

147. Nat’l Comm’n on Fair Hous. and Equal Opportunity, The Future of Fair Housing (Dec. 2008).

148. See U.S. Dept of Housing and Urban Development’s Homes and Communities website, Community Development Block Grant Program; see also Fair Housing Guidebook, at 1-5, 2-12 through 2-14.

149. HUD Toolkit on Crosscutting Issues Module V.

150. Lisa Robinson & Andrew Grant Thomas, Barriers to Housing – Race, Place and Home: A Civil Rights and Metropolitan Opportunity Agenda (Harvard Civil Rights Project 2004).

151. Fair Housing Guidebook at 2-19.

The Opportunity Impact Statement

Introduction

The ongoing investments in the nation’s economic recovery have the potential to revitalize not only our economy, but also the American promise of opportunity itself. American opportunity is the idea that everyone should have a fair chance to achieve his or her full potential, and that ensuring this fair chance requires not only certain basic conditions, but also the fulfillment of specific core values: equal treatment, economic security and mobility, a voice in decisions that affect us, a chance to start over after misfortune or missteps, and a sense of shared responsibility for each other as members of a common society. Fulfilling those values is not merely good policy, but part of our fundamental human rights.

An important chance to promote opportunity arises each time a governmental body supports or controls a major public or private project. Taxpayers support, and governments initiate and regulate, a wide range of projects, from highways and mass transit lines, to schools and hospitals, to land use and economic development, to law enforcement and environmental protection. These projects, in turn, can improve or restrict access to quality jobs, housing, education, business opportunities, and good health, among other opportunities. And, depending on their design and administration, they can serve all Americans fairly and effectively, or they can create and perpetuate unfairness and inequality based on race, gender, or other aspects of who we are.

Despite the progress we have made as a nation, research shows that people of color, women, immigrants, and low-income people continue to face unequal barriers to opportunity in a range of situations, including education, employment, health care, housing, economic development, asset building, business opportunities, environmental protection, and in the criminal justice system.1 In authorizing, funding, and regulating projects, federal, state, and local governments have a responsibility to keep the doors of opportunity equally open to everyone. And history shows that when they fulfill that role, we move forward together as a society.

The need for promoting opportunity is stronger than ever, given current efforts to revitalize the economy through the American Recovery and Reinvestment Act of 2009, Troubled Assets Relief Program (TARP), and other recovery proposals under consideration by the President and Congress. These plans involve unprecedented federal spending linking multiple sectors, and create an opportunity to a new and promising policy strategy designed to ensure that publicly supported and regulated projects expand opportunity equally to all the communities they serve: The Opportunity Impact Statement.

The Idea: The Opportunity Impact Statement

The Opportunity Impact Statement (OIS) is a comprehensive evaluation tool that public bodies, affected communities, and the private sector can use to ensure that programs and projects offer equal and expanded opportunity for everyone in a community or region, as required by law.

There are a large number of statutes, regulations, and executive orders that are designed to assure that recipients of federal funds do not discriminate—in either purpose or effect—on the basis of race, color, ethnicity, disability, gender or other social characteristics.

Deciding Between Opportunity and Inequality: Two Case Studies

The importance of a coordinated equal opportunity process is evident in the juxtaposition of two case studies: the rebuilding of New Orleans after Hurricane Katrina and the development of the Staples Center in Los Angeles.

Years after Hurricane Katrina, the reconstruction of the Gulf Coast has perpetuated, rather than ameliorated, unequal opportunity. Black and Latino evacuees were more than twice as likely to be unemployed two months after the storm as their white counterparts; a comprehensive survey by the Advancement Project attributes this in part to failed housing policy, lack of transportation, and discrimination that shut out many people of color from reconstruction jobs. Lucrative FEMA contracts that had the potential to reinvigorate local businesses and economies went mostly to large out-of-state companies, with only 5.4% of $3.7 million in contracts given through November 2005 going to Louisiana companies. Minority contractors, too, were largely overlooked in the initial contract awards. Exacerbating this situation was the effort of the Bush Administration to limit labor and equal opportunity protections in the reconstruction effort, such as his Sept. 8, 2005 suspension of the Davis-Bacon Act in the Gulf Coast, which eliminated a guarantee of federally-contracted workers receiving prevailing wages and made it harder for unionized contractors to receive federal reconstruction funds.* Such careless application of federal resources has led to further inequality in the Gulf Coast.

In contrast, the voluntary Community Benefits Agreement developed in conjunction with the construction of the sports and entertainment district of Los Angeles’ Staples Center. The Staples Center was constructed in 1999 without community input, resulting in the displacement of over 200 families and less-than-ideal labor contracts for workers. By working together on the proposed $1 billion expansion of the district, both developer AEG and over two dozen community groups were able to agree to a Community Benefits Agreement that included a goal of hiring local residents for 50% of the jobs created (with priority given to those displaced by construction), and for 70% of jobs to be living wage or union jobs. New commercial housing was paired with affordable housing, local parks, and recreation improvements. Informed economic development that considers the facts on the ground can expand and increase opportunity.**

* Thomas B. Edsall, Bush Suspends Pay Act In Area Hit By Storm, Washington Post, Sept. 9, 2005, D03.

** For more information on these case studies, see “Jobs and Business: The State of Opportunity for Workers Restoring the Gulf,” http://opportunityagenda.org/files/field_file/Katrina%20Jobs.pdf; “Community Benefits Agreements Victories”

Elements of the Opportunity Impact Statement

On both the federal and state level, impact statements are a well-established practice, intended to ensure that policymakers have full awareness of the impact of proposed rules before taking major action. Fiscal impact statements from the non-partisan Congressional Budget Office outline the costs and benefits of congressional legislation, and many states have adopted similar financial analyses for legislative action.3 Iowa, Connecticut, and Minnesota have established impact statements that review proposed changes in criminal justice policy to determine whether such action will exacerbate or reduce racial disparities in sentencing and incarceration.4 Another well-known impact statement is the federal Environmental Impact Statement (EIS) found in the National Environmental Policy Act (NEPA)5 that federal agencies must prepare when a major construction or other project is likely to have a significant effect on the environment. An EIS is prepared based on available data and investigation. It compares the proposed project to other alternative approaches, and invites public scrutiny and public comment. Ultimately, it aims to facilitate informed, sophisticated, and democratic decision making that pursues sustainable development in service to the public interest.

The Opportunity Impact Statement pursues similar goals in the context of opportunity. The OIS is designed to promote careful consideration of significant positive and negative opportunity impacts arising from proposed federally-funded projects. It also creates a single formal evaluation procedure that both assures an opportunity for meaningful public participation in the agency’s consideration of the proposed action and avoids duplicative or uncoordinated attempts at complying with equal opportunity mandates after the fact. The Opportunity Impact Statement will bring the voice of affected communities, structured efficiency, and balanced analysis to the table in the context of opportunity.

Using empirical data as well as community input and investigation, the OIS will assess the extent to which a project will expand or contract opportunity for all—e.g., would jobs be created or lost? Would affordable housing be created or destroyed? —as well as the extent to which it will equitably serve residents and communities of different races, incomes, and other diverse characteristics—e.g., would displacement or environmental hazards be equitably shared by affected communities?

These factors would be considered in the context of communities’ differing assets, needs, and characteristics. For example, will a construction project offer job-training opportunities to both women and men from communities with high unemployment rates, or will it bypass those communities? Will a new highway or light rail system connect distressed minority neighborhoods to quality jobs, hospitals, and green markets, or will it further isolate those communities? Experience shows that simply asking these types of questions and requiring a thorough and public response will have a positive effect on the development of publicly subsidized or authorized projects. And, where necessary, it will help identify and address potential and actual violations of equal opportunity laws in a timely manner.

The Opportunity Impact Statement would include four major elements:

1.  Coverage of Projects Involving Public Funds or Governmental Engagement. The mechanism applies to projects intertwined with taxpayer or government resources. It does not apply to wholly private activities—though private entities might voluntarily choose to employ it.

2.  Data Collection and Analysis. The Opportunity Impact Statement will collect and analyze data regarding the characteristics of affected communities (e.g., employment rates and health status, socioeconomic and racial make up, etc.), as well as the assets and opportunities currently available to those communities (e.g., access to hospitals, schools, banking, jobs, etc.), both independently, and in comparison to surrounding communities. In some cases, historical patterns (e.g., patterns of hospital closings, housing segregation) will also be relevant. An important part of the analysis will be the consideration of alternative approaches to achieving the goals of the project that may be more effective in ensuring equal access to greater opportunity, as well as changes that could mitigate or remove negative implications. Standardized metrics drawing upon both established and available government research will expedite the evaluation of a project’s impact on opportunity, primarily in five areas: jobs and economic development, housing, health, education, and transportation and related infrastructure.

3.  Public Comment and Participation. Members of the public—especially communities that would be positively or negatively affected by the proposed project—will participate in the decision making process in two ways. In the initial fact-finding stage, input from civil society will help guide information gathering regarding relevant impacts, potential alternatives, and sources of additional information. Once a preliminary assessment has been created, the public will have the opportunity to comment on the conclusions, express concerns or support, and complement factual information with practical human experiences and interaction.

4.  Transparency and Accountability.The OIS process will result in a public, written report, as well as a record of the goals, data, analysis, and public comments that led to the report’s conclusions. The report will guide governmental and community decision making regarding the proposed project while providing guidelines for the future development and regulation of projects that are ultimately approved. Moreover, the OIS serves as a uniform record across agencies demonstrating good faith efforts to comply with equal opportunity requirements.  In those instances in which the OIS identifies that a project, as planned, would violate federal law, modifications or rejection of funding would be required.

Legal Underpinnings

A network of federal statutes and their implementing regulations provides the underpinning for the Opportunity Impact Statement:

  • Title VI of the Civil Rights Act of 1964 and the federal regulations that implement it,6 which prohibit policies that have a discriminatory intent or effect based on race or language ability in federally funded programs;
  • Title VII of the Civil Rights Act,7 which prohibits racial, gender, and religious discrimination in both private and governmental employment;
  • Section 504 of the Rehabilitation Act,8 which prohibits discrimination in those programs based on disability;
  • Title IX of the Education Act,9 which prohibits gender discrimination in federally funded educations programs;
  • The Age Discrimination in Employment Act,10 which prohibits discrimination based on employment of persons 40 years of age or older;
  • The Americans with Disability Act,11 which prohibits employment discrimination against persons with disabilities in both public and private employment;
  • The Fair Housing Act of 1968,12 which requires the promotion of fair housing by government and prohibits housing discrimination based on race, religion, sex, disability, or familial status;
  • The Fair Credit Reporting Act,13 which provides basic consumer credit protections when such information is used for credit, insurance, or employment purposes;
  • The Home Mortgage Disclosure Act,14 which identifies discriminatory lending patterns and determines whether lenders are serving their community’s housing needs;
  • The Hill-Burton Act,15 which prohibits discrimination based on race, color, national origin, or creed in access to hospitals that have used federal capital investment funds, and requires provision of uncompensated care;
  • Medicaid’s Equal Access Provision,16 which requires that provider reimbursement rates are sufficient to ensure access to services available to the general population; and
  • The Uniform Relocation Act,17 which requires fair and equitable treatment of persons dislocated by federally funded projects, relocation assistance to displaced persons that minimizes financial and emotional impact, and improvement of the housing condition of displaced persons living in substandard housing.

In addition to prohibiting discrimination against people and communities on the basis of race, color, ethnicity, disability, gender and other characteristics, many of these laws require information collection and the analysis of data similar to that covered by the OIS.

A series of Executive Orders reinforces the federal responsibility comprehensively and effectively to address equal opportunity:

  • Executive Order 11246,18 which requires affirmative action in employment decisions by federal contractors and federally assisted construction contractors and subcontractors;
  • Executive Order 11478,19 which requires affirmative establishment of equal opportunity programs in each Executive department and agency;
  • Executive Order 12250,20 which requires the Attorney General to coordinate and enforce the implementation of nondiscrimination laws across Executive agencies;
  • Executive Order 12866,21 which requires Executive agencies to implement a regulatory and oversight system that fulfills statutory obligations, such as those nondiscrimination laws listed above;
  • Executive Order 12898,22 which requires that no racial, ethnic, socioeconomic, or other group of people should bear disproportionate environmental burdens resulting from industrial, commercial, or government operations or policies;
  • Executive Orders 1307823 and 13163,24 which requires the establishment of a National Task Force on Employment of Adults with Disabilities that in part conducts data analysis and research to improve rates of employment for adults with disabilities, and requires federal agencies to increase employment of individuals with disabilities;
  • Executive Order 1312525 and 13339,26 which requires Executive departments and agencies to increase participation of Asian Americans and Pacific Islanders in federal programs where the communities may be underserved, and to increase economic opportunity and business participation of Asian Americans and Pacific Islanders;
  • Executive Order 13160,27 which forbids discrimination by race, sex, color, national origin, disability, religion, age, sexual orientation, or status as a parent in federally conducted education and training programs; and
  • Executive Order 13171,28 which requires Executive departments and agencies to improve the representation of Latinos in federal employment.

Complementing these federal laws, international human rights laws support the use of the Opportunity Impact Statement. These include the Covenant on Civil and Political2930 both of which the United States has ratified, as well as the Convention on the Rights of the Child31 and the Convention on the Elimination of Discrimination Against Women (CEDAW),32 which the United States has signed but not yet ratified. The U.S. Supreme Court has increasingly relied on these standards in its interpretation of domestic legal obligations.33

Implementation of these laws by federal agencies is governed by Executive Order 13107,34 directing all agencies to comply with obligations under international human rights treaties and establishing an Interagency Working Group on Human Rights Treaties. The Interagency Working Group was effectively disbanded during President George W. Bush’s administration, failing to implement the Working Group’s policy coordination committee’s action plan. There is now an opportunity for President Obama and his Administration to not only revitalize the Interagency Working Group, but to refine E.O. 13107 to ensure the new Working Group’s success.35

Municipalities have also recognized the potential of international human rights law in supporting our national commitment to equal opportunity.  Earlier this decade, the City of San Francisco adopted CEDAW as part of its municipal law,36 resulting in a gender audit that was similar in key aspects to the Opportunity Impact Statement.

Adoption and Implementation

Existing law supports the use of an OIS process in many instances. The web of federal laws, executive orders, and treaties described above supports and, in some cases, require the collection, reporting, and consideration of impact data based on race, ethnicity, gender, disability, and language status.  Laws in many sectors, such as health care and education, requires inclusion and equitable treatment of low-income communities. And existing mechanisms, such as the Certificate of Need process that many states use to consider the distribution of health care resources, require only minor practical changes to fit within the Opportunity Impact Statement model. Indeed, Executive Order 1225037 and a number of agency implementing regulations under Title VI appear to require some affirmative mechanism of this kind.38 Moreover, Executive Order 12866,39 as revitalized by Executive Order 13497,40 signed by President Obama in January, directs agencies to implement effective and coordinated regulatory and oversight procedures. The Opportunity Impact Statement may serve as an efficient vehicle for fulfilling these agency responsibilities.

How It Will Work

As described above, the Opportunity Impact Statement draws from the lessons of other impact statements. The Opportunity Impact Statement will seek to provide a comprehensive and fair evaluation of significant opportunity impacts as well as reasonable alternatives, providing decisionmakers and the public with full information and allowing for the minimization of adverse impacts.41 Agency implementation of Opportunity Impact Statements will balance both the need for efficiency in review of necessary government-funded projects with evidence-based evaluation and transparency. The process envisions that an agency will have approval authority over projects within its mandate, and will use the Opportunity Impact Statement to guide and strengthen its evaluation of proposals, as well as to ensure federal anti-discrimination law compliance.

Proposed Opportunity Impact Statement Process

Opportunity Assessment

The Opportunity Assessment is an initial agency evaluation of the impact a project may have on opportunity for affected communities. The purpose of the Assessment is to inform and influence decisionmakers on whether to accept, reject, or require changes to a proposal. This assessment will be submitted by those proposing the project under review, and will serve as either a gateway to a complete and full Opportunity Impact Statement or, with a Finding of Equal and Expanded Opportunity (FEEO), permit the proposed plan to move forward without changes. In this last sense, the Assessment ensures that projects with strong evidence of positive effects on opportunity are immediately approved.

In sum, the Opportunity Assessment is a concise public document which serves to:

  1. Briefly provide sufficient evidence and analysis for determining whether to prepare a full Opportunity Impact Statement or a Finding of Equal and Expanded Opportunity;
  2. Demonstrate and assist with compliance with laws when no Opportunity Impact Statement is necessary;
  3. Facilitate preparation of a statement when one is necessary by identifying the pertinent issues to be addressed in the Opportunity Impact Statement; and
  4. Determine the need for the project, potential effects of a project on the opportunity of a population, distribution of those effects within the population, and any available alternatives.

All stakeholders may prepare an Opportunity Assessment on an action at any time in order to assist agency planning and decision making. The ultimate goal of the Assessment is to determine whether a full-blown Opportunity Impact Statement is necessary. Where necessary to expedite consideration, a determination may be made solely by the regulatory body without public input, affording the regulatory agency a significant degree of discretion. If a “Finding of Equal and Expanded Opportunity” is made, the project may move forward as planned. However, if the Assessment determines that there will be a significant negative impact on opportunity as a result of the proposed project, a full Opportunity Impact Statement procedure will be initiated.

As timeliness is a substantial concern in the application of any new procedures, the OIS envisions proposals should have a mechanism to expedite review in a manner that continues to ensure equal opportunity. One such mechanism is an analog to the Uniform Guidelines on Employment Selection Procedures.42 The Uniform Guidelines create a single set of nondiscrimination principles that employers seeking federal contracts can affirmatively take to comply with federal law in testing and other employee selection procedures. Built upon practical agency experience, prior guidelines, court decisions, and the best research and standards of psychological professionals, the Uniform Guidelines allow federal contractors the ability to proactively ensure compliance with Title VII of the Civil Rights Act of 1964.43  The Opportunity Impact Statement envisions a parallel set of Uniform Guidelines relating to equal and expanded opportunity that will create a presumption for a Finding of Equal and Expanded Opportunity, allowing compliant projects to move forward without further delay.

As with the Uniform Guidelines on Employment Selection Procedures, guidelines within the OIS would draw upon the expertise and research of social scientists familiar with the impact of government funded projects upon opportunity. Such knowledge could allow the development of numerical metrics for evaluation of potential adverse impacts to opportunity in areas such as health, education, housing, economic development, and infrastructure. The guidelines would lay out minimum standards required in crafting a proposal that expands opportunity equally; for example, by providing benchmarks based on such metrics as percentage of jobs created accessible to local residents, or other variants of Opportunity Metrics discussed below.

An Opportunity Assessment is not necessary if the agency has decided to prepare a complete Opportunity Impact Statement.

Full Opportunity Impact Statement Process

The Opportunity Impact Statement process consists of three stages:

  1. Draft Opportunity Impact Statement
  2. Public Comment Period
  3. Final Opportunity Impact Statement

Draft Opportunity Impact Statements would be prepared in accordance with the scope of the project decided upon during the Opportunity Assessment, which will determine what opportunity factors and considerations will be examined. In addition, they must fulfill to the fullest extent possible the requirements established for final Statements. Those requirements should include:

  1. The opportunity impact, measured by delivery of and/or access to services, job creation, business openings, and community opportunity to participate in the benefits of the project, with a discussion of community need;
  2. Any adverse effects on the population’s opportunity which cannot be avoided should the proposal be implemented;
  3. Alternatives to the proposed action or ameliorative effects, including a cost-benefit analysis; and
  4. The degree to which the project will impact services or industries in a manner that will meet projected long-term community employment and infrastructure needs.
  5. The ultimate format for Opportunity Impact Statements should encourage both solid analysis and clear presentation of the alternatives, allowing the agency, the applicant, and members of the affected communities to understand the opportunity implications of the proposed project.

Following the Draft Statement, the process provides for an open and substantive Public Comment Period, including proactive outreach to stakeholders, including:

  1. Agencies that have jurisdiction by law or special expertise with respect to any service area or industry involved;
  2. The project applicant; and
  3. The public, affirmatively soliciting comments from those persons or organizations that are both directly and indirectly affected by the project proposed, or who would be affected by identified alternatives.

The final Opportunity Impact Statement will assess and consider all comments and respond in one of the following ways:

  1. Require applicant modification of the proposed action;
  2. Develop and evaluate plausible alternatives not previously given serious consideration by the agency;
  3. Supplement, or modify the agency’s analyses;
  4. Make factual corrections;
  5. Explain why the comments do not warrant further agency response, citing the sources, authorities, or reasons which support the agency’s position and, if appropriate, indicate those circumstances which would trigger agency reappraisal or further response.

Possible Opportunity Metrics

The data necessary to measure opportunity impact will frequently be available from existing sources. After identifying the relevant geographic area, agencies applying the Opportunity Impact Statement would draw first from existing federal, state, and municipal data, including Census data, to determine likely impact.44

Not all of the metrics for measuring opportunity will be applicable for every project, but holistic consideration of projects across categories similar to those suggested here will ensure that potential projects address both short-term and long-term impacts on a community’s opportunity.

Possible metrics include both absolute opportunity and equality of opportunity based on covered characteristics across the following measures:

  • Economic Development – Small Businesses and Jobs: Does the project encourage economic development of the affected communities by promoting small businesses and creating high-quality, community-accessible jobs?
  • Contracting Locally – Does the project have contracting rules that employ local residents and assist local small businesses?
  • Accessible Jobs – Are new jobs created within the affected communities and accessible to community residents? If the jobs created are not compatible with the skills of community residents, does the project create on-the-job training or apprenticeship positions for community residents?
  • Revitalization – Does the project increase the number of vacant/unused properties, or does it utilize vacant property for purposes beneficial to the affected communities?
  • Equal Opportunity and Anti-Discrimination – Where required, does the project implement affirmative action in hiring or contract distribution, to help reform deep and/or abiding discrimination within industries or communities?
  • Non-Discrimination – Does the project provide equal, meaningful access to employment and services generated by the project to persons of all genders, races, ethnicities, primary languages, disability statuses, and sexual orientations?
  • Reducing Barriers to Mobility – Does the project include measures to ensure that the populations with the greatest barriers to upward mobility (i.e., under 200% FPL) have access to created jobs?
  • Rehabilitation and Recidivism Prevention – Does the project include measures or programs that reduce, rather than increase, arrest, incarceration, and recidivism?
  • Support systems – Will the project create or include child care, family leave, or other opportunities shown to enable equal job participation by women.

2. Health: Does the project improve or lessen the opportunity for impacted residents and communities to live under healthy conditions? This can be measured by examining:

  • Access to health care services – measured by the Health Resources and Service Administration’s Index of Medical Underservice.45 Will the project increase or decrease access to primary care for underserved and vulnerable populations?
  • Nutrition – measured by the Institute of Medicine’s State of USA Health Indicators.46 Will the project increase or decrease the percentage of adults able to conform to federal dietary guidelines as measured by federally collected data?
  • Physically Unhealthy Days – measured by the CDC.47 Will the project decrease or increase the number of physically unhealthy days experienced by residents?
  • Environmental Exposure – Will the project entail environmental hazards or clean- up efforts?
  • Reducing Barriers to Mobility – Where the project creates new services, does the project include measures to ensure that the populations with the greatest barriers to upward mobility (i.e., under 200% FPL) have access to the health care created?
  • Cultural and Linguistic Access – measured by the Office of Minority Health’s Culturally and Linguistically Appropriate Services (CLAS) standards.48 Are the projects’ benefits, services, and opportunities culturally and linguistically accessible?

3.  Education: Does the project improve or lessen the opportunity for affected residents and communities to access quality education and job training?

  • K-12 – measured by state and Department of Education data on classroom size, school resources, and graduation rates. Will the project improve or worsen the educational opportunity of students in the affected communities?
  • School Integration – measured by the U.S. Census Bureau49 and the Pew Hispanic Center.50  Will school construction expansion or demolition increase or decrease school integration?
  • Higher education – measured by the National Center for Education Statistics’ Integrated Postsecondary Education Data System.51 Will the project increase or decrease the number of residents likely to enroll and complete degree programs?
  • Apprenticeships and Job Training – Will the project create job training or apprenticeship opportunities within the affected communities?
  • Child care, daycare, and preschool – measured by state data on child care and preschool availability. Will the project improve or worsen the ratio of childcare availability to the population of children in need of such care, considering also the projected population changes over the course of the project?
  • Reducing Barriers to Mobility – Where the project creates new services, does the project include measures to ensure that the populations with the greatest barriers to upward mobility (i.e., under 200% FPL) have access to the educational opportunities created?

4. Housing: Does the project improve or lessen the opportunity for affected residents and communities to access stable, safe and quality housing?

  • Affordable housing – Are provisions for more affordable housing integrated into new project designs? Does the project include measures to ensure that the populations with the greatest barriers to upward mobility (i.e., under 200% FPL) have access to more quality housing?
  • Property Values and Rent Levels – measured in part by the concentration of “rent stress” in the community, of those renters paying over 30% of income on gross rent. Are measures including in the project to maintain stable property values and rent levels?
  • Foreclosure Prevention – measured by records of foreclosures as well as concentration of “mortgage stress” in the community, of those homeowners paying over 30% of income on their mortgages. Does the project anticipate existing and potential foreclosures in the impacted community and integrate measures to assist those threatened by foreclosure?
  • Green Areas – Does the project increase or decrease the proximity of sizeable green areas (i.e., parks) to housing?
  • Residential Integration – measured by the U.S. Census Bureau.52 Does the project promote or discourage racially and socioeconomically integrated housing and neighborhoods, and does it include affirmative fair housing measures, as required under existing law?
  • Transportation and Related Infrastructure: Does the project make it easier or more difficult for the impacted community to access benefits, services, and opportunities? Does the project integrate the affected communities with surrounding communities, not only in terms of racial, ethnic, and socioeconomic integration, but also in terms of bringing services essential to opportunity to isolated populations, and increasing the civic participation of the affected communities?

Transportation – measured in part by distance to major transit hubs and average travel time to work. Does the project expand or restrict transportation paths utilized by the community impacted? Does it expand or restrict access to public transit, walkways, and bicycle paths? Does it support public transportation programs that reliably and efficiently help people who live in areas of high unemployment to commute to areas of high job growth and opportunity?

Economic Security – Does the project promote businesses or services that encourage or discourage economic security (e.g., banks vs. cash-checking facilities, bankruptcy prevention efforts such as credit counseling, and enforcement of fair lending laws)?

Civic Participation – Does the project include measures to increase voter registration, enfranchisement, and civic participation of the community?

No one project is likely to involve an inquiry into the full range of opportunity indicators set out above; rather, this non-exhaustive list suggests the range of factors likely to be relevant across multiple projects.

In many cases, the Opportunity Assessment or OIS will reveal no cause for denial or modification, and the project will go forward. Data and public comments developed in the process, however, may be part of subsequent monitoring or complaint resolution.

Where the OIS process reveals that a proposed project would violate federal law, the project clearly must be either rejected or amended to produce compliance. This includes, for example, evidence that a project would have a significant racially discriminatory effect, and that less discriminatory alternatives exist that would achieve the project’s purposes. In other cases, a proposed project may comply with the letter of the law, but public comment or investigation may reveal more effective methods of achieving the project’s goals, which the applicant may choose voluntarily to adopt or which might be negotiated with federal authorities. Where evidence of ongoing illegality arises during the course of the process, it should be addressed through agency enforcement action or, if necessary, referral to the Department of Justice.

Example: Publicly Funded Transportation Project

The construction of a new highway connecting a city with inner and outer ring suburbs will entail state and federal (Department of Transportation) funding over a period of 5 years. The project will include many positive opportunities for some communities, including job training, employment, contracting, and access to and from jobs, hospitals, schools, and shopping. There will also be short and long-term burdens, including air and noise pollution, increased traffic, and the displacement of people from their homes and neighborhoods.

Inherent in the development, funding, and approval of this proposed project are a range of decisions regarding the quality, quantity, and fair distribution of those burdens and benefits. Historically, those decisions have not always maximized the overall expansion of opportunity (e.g., jobs created, green areas developed), and have often imposed the greatest burdens and fewest benefits on communities of color, poor communities, and women.53 Nor have these or other residents typically been a part of past decision making.

In deciding whether to authorize and underwrite the project, as well as identifying conditions on its approval, governmental and community leaders can use the Opportunity Impact Statement process as a way to gather and analyze relevant information; to consider equal access to opportunity in the context of viable alternatives, as required by federal equal opportunity laws; and to ensure democratic input, transparency, and accountability.

In this case, the Department of Transportation (DOT) would first engage in an Opportunity Assessment of whether the project has significant impact on the opportunity of the affected communities. This public document would “scope” the project—outlining the communities and metropolitan area affected—and determine whether the burdens and benefits of the project are distributed in a way that substantially impacts the expansion or retraction of opportunity for each impacted community. Community members and other interested groups would have the chance to submit their own Opportunity Assessments to DOT for consideration in the decision.

Given the breadth of a new highway project, DOT would likely find significant impact and determine that a full OIS is necessary. In creating a Draft OIS, DOT would collect and analyze data appropriate to the metrics listed above, including, for example:

  • The demographics of communities that would be affected, positively and negatively, by the proposed project, as compared with the identified alternatives and the metro area as a whole;
  • Relevant conditions within these communities—e.g., an existing concentration of environmental hazards or high asthma rates that make some communities particularly sensitive to new construction and pollution, transportation needs of the community (as related to access to health services, centers of employment) and how those might be alleviated or worsened by a new highway;
  • Predicted displacement of families and related impact on rates of homeownership within the community, by demographic group;
  • Job training opportunities and likely jobs created, as compared with other viable alternatives; and
  • Workforce demographics, employment rates, qualifications, and training needs of the relevant communities.
  • Opportunities for communities with high unemployment to quality jobs, education, and other mobility-inducing assets.

Alternative approaches might range from slightly different routes for the highway to a more substantial shift to mass transit.54

Applicable federal, state, local, and international standards would be incorporated into the Opportunity Impact Statement process.  Specifically, all programs that receive funding from the U.S. Department of Transportation are bound by Title VI of the Civil Rights Act of 1964, the Rehabilitation Act, and the regulations that the DOT has promulgated to implement each statute. These provisions, respectively, require federally funded programs to ensure that their activities do not have the effect of discriminating against or excluding people based on their race or disability. The Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) further requires recipients of DOT funds to “ensure that persons displaced as a direct result of Federal or federally-assisted projects are treated fairly, consistently, and equitably so that such persons will not suffer disproportionate injuries as a result of projects designed for the benefit of the public as a whole.” Both Title VI and the URA also require assistance to people with limited English proficiency.

Following publication of the Draft OIS, the community would have a meaningful opportunity to comment, including public forums where appropriate. DOT, in creating a Final OIS, would be called upon to respond to comments, either by changing elements of the project or explaining why the project differs in design from a comment’s recommendation. As with the Opportunity Assessment and the Draft OIS, the Final Opportunity Impact Statement would be a public document, both increasing transparency and documenting the agency’s decision-making process and compliance with existing law.

By utilizing the uniform evaluation instrument of the OIS, DOT would avoid redundancies and facilitate coordination of efforts by the Department of Labor, the Environmental Protection Agency, the Equal Employment Opportunity Commission, and the Department of Justice in complying with equal opportunity mandates. It would also greatly reduce the likelihood of civil rights litigation, which could significantly delay the project and drive up its costs.

Timing

The Opportunity Impact Statement is intended to facilitate and improve the evaluation and enforcement processes of agencies, while creating an “opportunity multiplier effect,” such that government projects assist in building long-term economic security and mobility for all Americans. To that end, the OIS should draw on the best elements of other impact statements while improving on problematic areas. Among other goals, it should increase efficiency of review through greater coordination, predictability, and uniformity of data collection, review, and decisionmaking.

Research on the operation of Environmental Impact Statements shows that preparation times vary widely, from less than two to more than a dozen months in the case of environmentally complex projects. Development of OIS procedures should draw from best practices for swift, yet rigorous review. Because the OIS process will proceed in parallel with environmental and other reviews, it should not result in significant additional delays in needed projects.

In these times of pursuing economic recovery, the OIS seeks to build upon current best practices and resources of the federal government. To that end, its design and structure should seek the use of best available data already accessible to agencies and communities. In this way, the burden of data collection is minimized.

Conclusion

The Opportunity Impact Statement carries the potential to expand opportunity greatly in communities around the country while encouraging public accountability and civic engagement. Moreover, it is a flexible tool that can be applied to any number of projects, big or small. We believe that providing the Opportunity Impact Statement is an important step in realizing our society’s promise as a land of opportunity.


Notes:

1. For a summary of government data on opportunity for different groups at the national level, see The State of Opportunity in America, 2009.

2. See infra “Legal Underpinnings.”

3. See, e.g., Nat’l Conf. of State Legislatures, Fiscal Impact Statements, Nat’l Conf. of State Legislatures, Sites of Legislative Fiscal Offices

State of Oregon, Staff Measures Summaries Home Page; South Carolina Budget & Control Board, Office of State Budget – Fiscal Impact Statements.

4. Marc Mauer, Racial Impact Statements: Changing Policies to Address Disparities, 23 CRIM. JUSTICE No. 4 (2009).

5. Pub. L. 91-190, 42 U.S.C. 4321-4347, Jan. 1, 1970, as amended by Pub. L. 94-52, July 3, 1975, Pub. L. 94-83, August 9, 1975, and Pub. L. 97-258, § 4(b), Sept. 13, 1982.

6. 42 U.S.C. § 2000d et seq.

7/ 42 U.S.C. § 2000e et seq. (1964).

8. Sections 501, 503, and 504 of the Rehabilitation Act of 1973, codified at 29 U.S.C.A. §§ 791, 793, and 794.

9. 20 U.S.C. §§ 1681-88.

10. 29 U.S.C. § 621, as amended (1967).

11. 42 U.S.C. §§ 12101-12213, as amended (1990).

12. Civil Rights Act of 1968, 42 U.S.C. § 3601 et seq., as amended.

13. 15 U.S.C. § 1681 (1996).

14. 12 U.S.C. §§ 2801-2810 (1975).

15. Hospital Survey and Construction Act, P.L. 79-725 (1946).

16. 42 U.S.C. § 1396a(a)(30)(A) (2006); see also 42 C.F.R. § 447.204 (2006).

17. Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs, 42 U.S.C. § 4600 et seq. (1970).

18. 30 Fed. Reg. 12319 (1965), as amended.

19. 34 Fed. Reg. 12985 (1969), as amended.

20. 45 Fed. Reg. 72995, 3 CFR, 1980 Comp., p. 298 (1980).

21. 58 Fed. Reg. 51735 (1993); see also Executive Order 13497, 74 Fed. Reg. 6113 (2009).

22. 59 Fed. Reg 7629 (1994).

23. 63 Fed. Reg. 13111 (1998).

24. 65 Fed. Reg. 46563 (2000).

25. 64 Fed. Reg. 31105 (1999).

26. 69 Fed. Reg. 28037 (2004).

27. 65 Fed. Reg. 39775 (2000).

28. 65 Fed. Reg. 61251 (2000).

29. G.A. res. 2200A (XXI), 21 U.N. GAOR Supp. (No. 16) at 52, U.N. Doc. A/6316 (1966), 999 U.N.T.S. 171, entered into force Mar. 23, 1976.

30. G.A. res. 2106 (XX), Annex, 20 U.N. GAOR Supp. (No. 14) at 47, U.N. Doc. A/6014 (1966), 660 U.N.T.S. 195, entered into force Jan. 4, 1969.

31. G.A. res. 44/25, annex, 44 U.N. GAOR Supp. (No. 49) at 167, U.N. Doc. A/44/49 (1989), entered into force Sept. 2, 1990.

32. G.A. res. 34/180, 34 U.N. GAOR Supp. (No. 46) at 193, U.N. Doc. A/34/46, entered into force Sept. 3, 1981.

33. E.g. Roper v. Simmons, 543 U.S. 551, 576 (2005) (citing the prohibition on juvenile death penalty in the Convention on the Rights of the Child); Lawrence v. Texas, 539 U.S. 558 (2003).

34. 63 Fed. Reg. 68991 (1998), 38 ILM 493 (1990).

35. For a comprehensive analysis and recommendation of best practices in reinstituting the Interagency Working Group on Human Rights, see Catherine Powell, Human Rights at Home: A Domestic Policy Blueprint for the New Administration (Oct. 2008).

36. City and County of San Francisco, Local Implementation of the United Nations Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), Chapter 12K (2000).

37. 45 Fed. Reg. 72995, 3 CFR, 1980 Comp., p. 298 (1980).

38. E.g., 10 CFR 1040.11 -1040.14 (regulating the Department of Energy); 34 CFR 100.1-100.13 (regulating the Department of Education); 49 CFR 21.1-21.23 (regulating the Department of Transportation).

39. 58 Fed. Reg. 51735 (1993).

40. 74 Fed. Reg. 6113 (2009).

41. These goals have been tested in fora such as the Environmental Impact Statement, as created by NEPA, Pub. L. 91-190, 42 U.S.C. 4321-4347, Jan. 1, 1970, as amended by Pub. L. 94-52, July 3, 1975, Pub. L. 94-83, August 9, 1975, and Pub. L. 97-258, § 4(b), Sept. 13, 1982. Both successes and pitfalls of existing impact statements are discussed throughout this document.

42. 41 CFR 60-3 (1978).

43. 42 U.S.C. § 2000e et seq.

44. Federal data that demonstrates access to opportunity is available on a wide range of issues. See The Opportunity Agenda, The State of Opportunity 2009.

45. Health Resources & Servs. Admin., U.S. Dep’t of Health & Human Servs., HPSA Designation.

46. Institute of Medicine, State of U.S.A. Health Indicators.

47. Ctrs. for Disease Control & Prevention, Health-Related Quality of Life – Prevalence Data, Mean Physically Unhealthy Days.

48. Office of Minority Health, U.S. Dep’t of Health & Human Servs., National Standards.

49. U.S. Census Bureau, Housing Patterns.

50. Pew Hispanic Center, Racial and Ethnic Composition of Schools, August 30, 2007, Table 1.

51. Nat’l Ctr. for Educ. Statistics, U.S. Dep’t of Education, Integrated Postsecondary Education Data System.

52. U.S. Census Bureau, Housing Patterns, supra note 23.

53. See, e.g., Executive Order 12898, 59 Fed. Reg 7629 (1994); St. Francis Prayer Ctr. v. Michigan Dept. of Envtl. Quality, EPA Complaint 05R-98-R5 (commonly known as the “Select Steel” case, in which parishioners from a largely African American community alleged the granting a permit for the construction of a steel-recycling plant would have a discriminatory impact on the community of color in violation of Title VI); U.S. Environmental Protection Agency, “In re: Shintech Inc., Order Responding to Petitioners’ Requests that the Administrator Object to Issuance of State Operating Permits, Permit Nos. 2466-VO, 2467-VO, 2468-VO,” Oct. 28, 2002, pp. 1–2 (commonly known as the “Shintech” case, in which advocacy groups alleged, on behalf of the largely low-income community of color, that granting a permit for a toxic waste facility would have a discriminatory impact on the community of color in violation of Title VI).

54. See Labor/Cmty. Strategy Ctr. v. L.A. County Metro. Transp. Auth., Case No. CV 94-5936 TJH (Mcx), Consent Decree (1996), (holding that “equal and equitable access” to a “fully integrated mass transportation system” requires that long-range planning, capital investment, and annual budgets consider and give priority to the need of predominantly low-income “transit-dependent” residents).

Recommendations for Ensuring Equitable Access and Quality

To the New York State Departments of Health and Insurance:

The Opportunity Agenda would like to thank Governor Eliot Spitzer, Commissioner of Health Richard Daines, and Superintendent of Insurance Eric Dinallo for the chance to contribute to the development of a comprehensive and equitable health care system in New York. Please find included written testimony and recommendations, submitted on behalf of The Opportunity Agenda, for your New York City public hearing today, “Increasing Access to Health Insurance Coverage and Moving Toward Universal Healthcare Coverage.”

If you have any questions or would like further information, please use the following contact information:

Kevin Shawn Hsu
Associate Counsel
568 Broadway, Suite 302
New York, NY 10012
212.334.4267
khsu@opportunityagenda.org

Thank you for your consideration of this testimony.

Sincerely,

Kevin Hsu
Associate Counsel

Recommendations for Ensuring Equitable Access and Quality in New York State Health Care System Reform

Submitted to the New York State Departments of Health and Insurance by The Opportunity Agenda

October 30, 2007

The Opportunity Agenda welcomes the chance to provide testimony to the Departments of Health and Insurance to assist in the development of a health care system that provides equal access to high-quality care for all New Yorkers.

This testimony seeks to provide New York with equity benchmarks, elements of state-level health care policies and proposals that promote equitable health care access and quality for all populations, that should be used in evaluating any health care system reform proposals. The benchmarks address six aspects of the health care system: (1) Access to Health Care, (2) Quality of Care, (3) Patient Empowerment, (4) Health Care Infrastructure, (5) Policy Infrastructure, (6) Social and Community Determinants of Health. These benchmarks are informed by our review of literature on health care disparities and draw from existing and proposed state-level policies that promote equitable, high-quality health care for all.

Summary of Recommendations

In crafting a universal health care system that provides access to quality care for all residents of New York, the State should include reforms that ensure improvements to the system for all while eliminating health care disparities based on race, ethnicity, primary language and income. New York should utilize the equity benchmarks described in this testimony to evaluate any health care system reform proposal. In making health care affordable and accessible to all, including underserved communities, a health care system must ensure that cost-sharing policies are equitable by, for example, preventing policies such as premium pricing based on existing health status or individual mandates from disproportionately excluding communities of color from care. Reforms must also improve the cultural and linguistic competency of both providers and health care systems to encourage effective use of health care resources and delivery of appropriate care. In all of these efforts, New York must also integrate monitoring efforts into reforms to guarantee that changes lessen, rather than exacerbate health care disparities.

New York must also improve the quality of care that patient receive, regardless of the insurance program in which they are enrolled. With regards to eliminating the documented inequities in the quality of health care received by communities of color, immigrant communities, and low- income populations in New York, reforms must include collection of quality of care data, stratified by race, ethnicity, primary language and other characteristics of underserved communities. This data should be publicly reported and, more importantly, acted upon by providing incentives to providers who engage in quality improvement programs targeting demonstrated health care disparities, educating patients, and supporting and expanding community health worker programs that bridge cultural and trust gaps between providers and underserved communities.

Finally, New York must reform the health care system infrastructure to better address the needs of racial, ethnic, and language minorities.  This includes increasing state support for and reducing the financial vulnerability of “safety net” hospitals, community health centers, and health care institutions serving poor and minority communities.  Reforms should also construct or revive programs that combat disparities, such as creating incentives for health care professionals working in underserved communities, reviving the statewide network of Health Systems Agencies that used community health planning to better align community needs and health care resources, and reviewing the use of the Certificate of Need process so that changes to hospital services are contingent on community need and reduction of racial, ethnic, and linguistic health disparities. To implement these infrastructure and policy reforms, New York should dedicate resources to coordinating the various responsible state agencies in creating a comprehensive, statewide approach to eliminating racial and ethnic health disparities.

Legal and Ethical Principles

Our review of New York’s constitutional, statutory and other legal obligations, as well as public opinion, indicate that efforts to reform New York’s health care system must be informed by the following principles:

  • That the New York State Constitution obligates the State to provide access to high quality health care to all New York residents, with particular attention to vulnerable groups and those least able to pay for care.1
  • That federal civil rights laws and international human rights laws obligate the State, its subdivisions, and virtually all health care providers to avoid and actively dismantle any practices having a discriminatory purport or effect on particular racial, ethnic, or linguistic groups, with respect to access to or quality of health care.2
  • That federal and state health care laws obligate the State to ensure adequate support and care for low-income and medically underserved communities, including through adequate Medicaid reimbursement rates and equal treatment, irrespective of income or insurance status.3
  • That the people of New York overwhelmingly believe that everyone in New York has a right to health care, and that the State is responsible for ensuring that racial or ethnic minorities and low-income New Yorkers have an equal chance to access health care as do wealthy people.4
  • That protecting and promoting the health of the inhabitants of New York5 requires systems, policies, and practices that ensure equitable access to high quality care.6

Health Care Equity in New York

The efforts of Governor Eliot Spitzer, the Department of Health, and the Department of Insurance to move New York toward universal health coverage are to be lauded. Rapidly escalating health care costs, a rising number of people who lack health insurance, inconsistent health care quality, and a paucity of federal action to address these problems necessitates the consideration of state-level health care reform proposals that, if enacted, would create significant changes in how the State approaches health insurance coverage and health system regulation.7 A poll conducted by The Opportunity Agenda and designed by researchers at the Harvard School of Public Health confirms public support for these efforts: 89% surveyed said that “everyone in New York has a right to health care.”8

The New York State Departments of Health and Insurance are holding these hearings with the explicit goals of achieving universal, high-quality health insurance coverage and containing health care costs. However, a major problem which impacts both cost and quality, yet is often unaddressed, is the problem of inequality in health care access and quality. Inequality is a pervasive and persistent problem that is acknowledged by health care quality and policy experts to be a central concern in any heath care reform effort.9  We use the term health care inequality  to describe disparate or disproportionate health care access and quality problems experienced by racial and ethnic minorities, the uninsured, immigrants, those who are not proficient in English, and others, relative to more advantaged groups. While having health insurance is the single most significant factor determining the timeliness and quality of health care that patients receive, inequality persists even among similarly insured patients. For example, a large body of research demonstrates that even with the same health problems and the same sources of health insurance, racial and ethnic minority patients, as well as those who are not proficient in English, tend to receive a lower quality of health care.10

Health care disparities are intimately linked to access, quality, and cost issues within the health care system. For example, a relatively small investment targeted toward communities experiencing significant gaps in care can save the State significant amounts of money. Consider the neighborhood of Rockaway, Queens, where 13.5% of mothers receive late or no prenatal care; unsurprisingly, a full 10% of babies in that community are born low-weight.11 While the average cost of medical and follow-up care for a healthy normal weight baby is $6,500, care for a premature or low birth-weight baby costs between $90,000 and $180,000.  However, a $180,000 health promotion program will provide more than 50 at-risk pregnant women with intervention to reduce their risk of bearing low birth-weight babies; if the program is even modestly successful, it would dramatically improve the financial efficiency, as well as the quality, of the neighborhood’s health care system.12 New York State could save hundreds of millions of dollars if it ensured access to quality primary care for all New Yorkers.13 True high- quality, universal care requires recognition and efforts to eliminate the significant health care inequities facing residents of New York.

Racial and ethnic minority and language-minority groups face well-documented problems in both accessing health care and receiving equal quality care. Lack of health insurance is a primary cause of these disparities; over half of the nation’s 47 million uninsured individuals are people of color.14 In New York City, 30% of New Yorkers of color are uninsured, compared to under 17% of white New Yorkers.15 And in New York State, Asian residents are more than twice as likely to be uninsured, and Hispanic residents are more than three times likely to be uninsured as non-Hispanic Whites (Figure 1).

Figure 1: Uninsured Rate in New York State, Adults 18-64 By Race, 2007

Screen Shot 2017-03-15 at 5.04.25 PM.png

Source: New York State Department of Health, New York State Minority Health Surveillance Report, Sept. 2007; “All races” comes from the Current Population Survey Annual Social and Economic Supplement, available from the Current Population Survey Table Creator at http://www.census.gov/hhes/www/hlthins/data_access.html.

Closing racial and ethnic gaps in insurance coverage while increasing overall insurance rates is crucial. But health insurance coverage expansions alone do not ensure that medically- underserved, predominantly-minority communities will receive quality care in a timely fashion, or that inequality in health care access and quality will be eliminated. Predominantly minority communities also face higher rates of health problems, but have fewer health care resources, such as hospitals, primary care providers, outpatient clinics, and nursing home facilities.16 The health care services that are available to them are often of lower quality than those in more advantaged communities.17 And even among minorities who have insurance, many face cultural and/or linguistic barriers to accessing care, despite the existence of federal standards for cultural and linguistic competence in health care settings.18

As described below, in addition to providing truly universal health insurance coverage, steps toward ending inequality can include collecting data and monitoring for inequality, improving the health care infrastructure in low-income communities and communities of color, and addressing these groups’ cultural and linguistic needs.

I.  Access to Health Care

New York can expand access for underserved populations by:

Making health care affordable

Seeing that health care is affordable for all communities necessitates that policies take into account and attempt to minimize the disproportionate impact that health care costs may have on access and utilization among underserved populations. In creating a cost-effective and sustainable economic model for a health care system, New York should be sensitive to the potential effect of proposals on health insurance coverage and access among communities of color.  Specifically, New York should:

  • Examine the equity of health insurance premium pricing. For example, charging people in poor health more for insurance than those in good health is inequitable, and disproportionately burdens communities of color.
  • Consider the equity of cost-sharing arrangements. Cost-sharing arrangements are intended to make costs more transparent and promote cost-conscious consumer behavior, but may thwart universal coverage and exacerbate disparities. Several studies demonstrate that minority and low-income communities are less likely to access health care as out-of-pocket costs rise.19
  • Enable those with low incomes to purchase health insurance through sliding fee scales for premiums, public subsidies, and limits on co-payments and other out-of-pocket costs such that those at the lowest income levels will face only nominal charges.
  • After implementing any cost-sharing policies, study and respond to potential unintended effects of cost-sharing on utilization by currently uninsured and underinsured groups.

Assessing the differential impact of individual mandates on communities of color, immigrants, and low-income populations

Massachusetts’ new statute to achieve universal coverage requires individuals and families to purchase health insurance, and also establishes standards of affordability to determine premium or cost-sharing contributions. The impact of a similar individual mandate and definitions of affordability here in New York may vary across racial and ethnic groups, even at the same income level, as these groups vary in wealth and access to resources.20 In addition, the challenges of enforcing an individual insurance mandate across different communities are significant. Some documented immigrants, for example, may be reluctant to apply for public health insurance programs, even if eligible, as a result of anti-immigrant rhetoric and policies, and might therefore be slower to comply with a mandate.21 If New York chooses to apply an individual mandate, it should monitor insurance take-up among previously uninsured people by race, ethnicity and immigration status, and take steps to correct policies that might have a disproportionate impact.

Promoting cultural and linguistic competence in health care settings

Health care providers and systems must be culturally and linguistically competent to improve health care access and quality for an increasingly diverse U.S. population.22 The federal Culturally and Linguistically Appropriate Services (CLAS) standards identify fourteen benchmarks that have been widely accepted and increasingly adopted by health systems and providers.23  Indeed, federally-funded health care organizations are mandated to meet four of the standards.24 Similarly, greater diversity among health care professionals is associated with greater access to and satisfaction with care among patients of color.25 New York must develop or expand diversity efforts, which improve the cultural competence of health systems and increase the likelihood that patients of color will access and be satisfied with the health care they receive.  Specifically, New York may:

  • Promote cultural and linguistic competence through policies that encourage and reward health care organizations that implement the CLAS standards, such as fully reimbursing providers for language services through the Medicaid and Child Health Plus programs, or increasing payments through these programs for providers complying with the full set of standards.
  • Promote greater diversity among health care professionals by developing or expanding tuition-for-service agreements with underrepresented health care professionals.

Requiring cultural competency training for health care professional licensure

New York State is one of the most diverse states in the country, and New York City’s population is predominantly people of color. Demographic changes require that the health professions keep pace by training future and current providers to manage diversity in their practice.26 Some states have taken action to address this need—as of 2005, New Jersey required that all physicians practicing in the state must attain minimal cultural competency training as a condition of licensure. New York should assess whether and how various health care expansion proposals should follow suit.

Reducing “fragmentation” of the health insurance market

A potentially significant source of racial and ethnic health care disparities among privately insured populations lies in the fact that minorities who have insurance are likely to be disproportionately enrolled in “lower-tier” health insurance plans. Such plans tend to limit services, offer fewer covered benefits, and have relatively small provider networks. These limitations can impair access to quality care.27 New York can take steps as part of coverage expansion proposals to improve access to the same health care products and services, regardless of coverage source.  For example, one proposed California plan, AB 8, provides for the Insurance Commissioner to approve no more than five standardized plans for both public and private insurance markets, allowing patients to make fully-educated decisions about both the cost and quality of benefits each plan will provide.28

Improving and streamlining enrollment procedures for public health insurance programs

Racial and ethnic minorities and immigrants are underrepresented, relative to eligibility rates, in public health insurance programs. States that have achieved greater success in increasing minority participation in public programs have developed and sustained aggressive outreach programs and have taken steps to improve and streamline enrollment, with particular attention to the needs of cultural and language-minority groups.29 New York can improve and streamline enrollment through policies that evaluate and improve enrollment procedures among eligible yet underserved groups. For example, New York can utilize media campaigns, community-based outreach and application assistance, identification of potential enrollees through other systems (such as school lunch, early childhood education, etc.), and simplified enrollment systems.

Consistently evaluating outreach to and enrollment of underserved groups in public health insurance programs

Measurement of public insurance take-up rates in low-income communities and communities of color is an important step to ensure that health care expansion efforts reach underserved groups. By regularly conducting such evaluations and responding to gaps and shortfalls, New York can expect to see improved coverage rates among eligible populations.30

II.  Quality of Care

New York seeks to expand health care quality, as well as access. The State can provide incentives for quality improvement, such as pay-for-performance programs, performance measurement, and report cards. But quality improvement efforts that fail to take into account the different challenges and needs of underserved communities, and the health care institutions that serve them, can unintentionally worsen health care quality gaps. To prevent unintentional exacerbation of inequities, New York should establish mechanisms for promoting equity and accountability by promoting the collection of data on health care access and quality by patients’ race, ethnicity, income or education level, and primary language, and by publicly reporting this information.

New York can establish mechanisms for ensuring quality care and accountability to all communities by:

Requiring public and private health systems to collect data revealing and monitoring racial/ethnic, language status, and income-based health care disparities

Currently, state data collection efforts with regard to health care disparities are uneven. New York requires recipients of state funding (e.g., Medicaid managed care organizations) to collect and report health care access and quality data by patient demographic factors, but fails to utilize its leverage as a regulator, payer, and plan purchaser to require all health systems to collect and report data using consistent standards.31 And given that New York has non-discrimination laws that apply to health care settings and require state diligence to enforce, requirements to collect and report standardized data are an important benchmark for efforts to reduce health care inequality. New York should ensure that state health care expansion proposals mandate participation by all health systems operating in the state in a standardized data collection program.

Publicly reporting health care access and quality disparities

Once New York has obtained health care access and quality data by patient demographic characteristics, this information should be publicly reported, to promote greater public accountability, to allow consumers to make more informed decisions about where to seek care, and to assist state efforts to appropriate action to investigate potential violations of law.32

Encouraging the adoption of quality improvement programs that consider the health care challenges and needs of underserved communities

State health care quality improvement efforts, such as pay-for-performance or performance measurement, are gaining increasing attention. But because underserved communities typically face greater health needs and barriers to treatment, performance measurement that is blind to the additional challenges in providing health care to these communities can inadvertently dampen provider enthusiasm for treating low-income communities or communities of color. Quality improvement efforts should take into account the challenges and needs of underserved communities and reward efforts that reduce disparities and improve patient outcomes relative to baseline measures.33 New York should ensure that health care expansion proposals emphasize disparities reduction efforts and avoid unfairly penalizing providers in underserved communities while holding them and health systems accountable for improvements in health outcomes.

III.  Patient Empowerment

Patients should be empowered to make decisions about their health care and to insist that care be delivered in a manner consistent with their health care needs, economic status, and cultural context. These issues are particularly relevant for racial and ethnic minority and immigrant patients, who may face significant cultural barriers in U.S. health care settings.34 These concerns can be addressed by:

Developing and strengthening patient education programs that are well-researched and are tailored to the need of underserved communities

Patient education programs commonly seek to help patients understand how to best access health care services and participate fully in treatment plans. Such efforts to empower patients can help reduce health care disparities by providing patients with skills to effectively navigate health care systems and ensure that their needs and preferences are met. For example, patient education programs have been found to be effective as a means of reducing racial and ethnic disparities in pain control.35 Patient education programs are most effective when designed in partnership with community members and groups and when language, culture, and other concerns faced by communities of color are fully addressed.36

Supporting and expanding community health worker programs

Community health workers, also known as lay health navigators or promotoras, are trained members of medically underserved communities who work to improve community health outcomes. Community health worker programs train individuals to teach disease prevention, conduct simple assessments of health problems, and help their neighbors access appropriate health and human resources.37 New York State currently has 23 community health work programs, focused on prenatal and early childhood health.38 Research and practice indicate that such services can improve patients’ ability to access care and understand how to manage illness. Most importantly, community health workers can help reduce health disparities by community mistrust of health care providers stemming from historical discrimination, breaking down cultural divides between providers and patients, assisting in obtaining health insurance and accessing care, and disseminating vital health information to underserved communities.39  From a health care system perspective, community health workers also improve quality and reduce costs by encouraging more appropriate use of health care resources and reducing uncompensated care.40 New York can build on the successes of its existing perinatal community health worker programs by providing grants, seed funding, or other resources to help stimulate community health worker programs in new areas of health disparities, such as diabetes, HIV/AIDS, and preventable ambulatory care sensitive conditions such as asthma, hypertension, and pneumonia.

IV.  State Health Care Infrastructure

The disproportionate lack of health insurance among racial and ethnic minorities is associated with lower levels of health care resources (e.g., practitioners, hospitals and health care centers) in communities of color. Even if New York achieves universal health insurance coverage, communities of color will still require investments to improve their health care infrastructure.

New York can ensure that the community-level health care infrastructure needs of racial, ethnic, and language minority patients are better addressed by:

Supporting “safety net” hospitals and community health centers, and reducing the financial vulnerability of health care institutions serving poor and minority communities

People of color, immigrants and low-income individuals are more likely than other populations to access health care in safety net institutions, such as public hospitals and community health centers.41 In many cases, these institutions face financial vulnerability because of low Medicaid reimbursement rates and/or the costs of providing uncompensated care to uninsured individuals.42 These institutions may fare better in states where near-universal health insurance coverage proposals are enacted and where health insurance expansions are realized, but they will likely continue to face financial vulnerability until universal and equitable coverage is achieved.

New York operates a free care/bad debt pool aimed at reimbursing hospitals for uncompensated care. Yet the U.S. Department of Health and Human Services has said that many of New York’s most financially troubled hospitals will go bankrupt or default on their loans without more state assistance.43 State health care expansion proposals should include provisions to provide additional financial resources or other support to safety net institutions, particularly until coverage plans “ramp up” to reach uninsured populations.  The viability of these institutions is particularly important if New York fails to establish truly “universal” coverage due to exclusion of childless adults or undocumented immigrants who are not eligible for Medicaid and are subject to enrollment caps in many state-funded programs—exclusions which we recommend against. In such a scenario, New York would likely rely on safety net institutions to provide a significant uninsured population with primary and preventative health care that is essential to the state’s health.

Creating and/or improving incentives for health care professionals to practice in underserved communities

Low-income and minority communities often have the most pressing need for health care services, but they are served by a dwindling number of providers and institutions that lack resources to expand and improve services (Figure 2).44 New York can address this imbalance by providing incentives, such as funds for graduate medical education programs that focus on underserved populations, tuition reimbursement and loan forgiveness programs that require service in communities with health professional shortage areas.

V.  State Program and Policy Infrastructure

New York can improve its capacity to plan for and address the health care policy challenges and needs of minority communities by adopting or strengthening existing policies such as:

Community health planning

Community health planning is a means of gaining community input and better aligning health care resources with community needs. Community health planning has a long history, but its promise as a tool to reduce health care disparities has yet to be fully realized. Community health planning seeks to strengthen communities to play a greater role in their own health, actively involving residents in the planning, evaluation, and implementation of health activities in their communities. The 1974 National Health Planning Law sought to create and support a network of community Health Systems Agencies (HSAs), but a lack of funding and effective mechanisms for community input to shape health policy has led to a decline of HSA power and influence.45

In New York, the laws creating a statewide Health Systems Agency remain on the books,46 though the State stopped funding the agency in the 1990s.47 Despite its decline, HSAs have been proven effective and significant tools for equity in New York. The Finger Lakes HAS (FLHSA), for example, has served as an important vehicle to address the common concerns of consumer groups, businesses, health plans, and providers regarding health planning.48 Through collaboration between the Rochester community, local businesses, and the local insurer, Blue Cross Blue Shield, FLHSA has remained an active, self-funded project, but requires greater funding support to remain a broad-based planning agency. New York can integrate strategies to restart and reinvigorate HSAs and include disparities reduction efforts as part of the mission of these planning agencies into its health care expansion proposals.

Certificate of Need assessment

Historically, the purpose of the Certificate of Need (CoN) process has been to control health care costs and ensure that capital and technology investments in the health care industry reflect community needs. In New York, the process has required hospitals and other health care institutions that seek to establish, expand or reduce services to submit proposals so that the Department of Health can evaluate projects to eliminate unnecessary duplication of services and ensure that investments strategically address health care needs. The CoN process, however, has great potential to encourage a better distribution of health care resources, reflecting community and statewide need.49 The four current criteria examined by the DOH through the CoN—public need, financial feasibility, character/competence and construction50—are necessary but insufficient to ensure reflection of community needs. Although DOH is required to assess public need in determining whether to grant a Certificate of Need application for the construction, expansion, or conversion of hospitals,51 the agency has not historically done so (Figure 3).52 New York should re-evaluate and reinvigorate the CoN process through new policies that ensure accountability for the use of public funds; reduce geographic, racial, ethnic and socioeconomic disparities; and reduce the “fragmentation” of the health insurance market. Specifically, New York should ensure that the collection of data revealing racial/ethnic, language status, and income-based health care disparities, discussed above, is integrated into the CoN process. DOH should make obtaining a Certificate of Need contingent on evidence that changes sought would reduce racial and economic health care inequality.53

Figure 3

Coordination between DOH, DOI, the New York State Division of Human Rights, and the Attorney General

The New York State Division of Human Rights is charged with reviewing complaints under the New York State Human Rights Law and enforcing the law. However, few complaints reviewed by the State Division address discrimination in access to health care.54 But because discrimination in health care is often covert, structural, and sometimes unintentional, review of these limited number of complaints are not alone a good way to discover and eliminate existing racial discrimination. The State Division should exercise its power to initiate its own investigations, file its own complaints, and conduct studies in compliance with state, federal and international human rights law and to prevent and eliminate discrimination in access to health care.55

To this end, New York should develop a comprehensive, statewide approach to eliminating racial and ethnic health disparities, grounded in the fundamental understanding that these disparities stem from historical, interpersonal and institutional racism. The State is empowered to eliminate health care gaps through its control of funding, power of regulation and control over the authorization of hospital closings and downsizing to control the allocation of health care resources. Moreover, the Attorney General possesses broad authority under parens patriae standing, which provides states with the ability to sue to protect the health of their residents.56 The Departments of Health and Insurance, the Office of the Attorney General, and the State Division of Human Rights should coordinate efforts to end health disparities based on race or ethnicity. One model of coordination is a bill pending before the Massachusetts legislature to establish an Office of Health Equity to coordinate all efforts to eliminate racial and ethnic discrimination in health care.57 An equally comprehensive government-led initiative in New York would need: (1) to share the honesty of the Massachusetts Commission to End Racial and

Ethnic Health Disparities58 in acknowledging that racial and ethnic health disparities are caused by racism and institutional tolerance of racial bias; (2) to be led by influential policymakers who could implement the recommendations into law; and (3) to examine and address the multiple causes of disparities, including health care services, patient education and behavior, and larger social conditions.59

VI.  Policies to Address Social and Community-Level Determinants of Health

While largely outside of the purview of state health insurance coverage expansion proposals, any effort to reduce racial and ethnic health status gaps must address factors that lie largely outside of the health care arena. These include social and community-level determinants of health—such as environmental conditions in homes, employment, or educational institutions—which are powerful “upstream” predictors of who is healthy and who is ill. New York State health care reform proposals can consider strategies to:

Improve coordination of relevant state agencies that should address determinants (e.g., education, housing, employment)

State agencies that seek to reduce social and economic gaps are inherently engaging in health equity work. Almost all aspects of state policy in education, transportation, housing, commerce, and criminal justice influence the health of state residents, and can have a disproportionate impact on underserved communities. New York can take steps to coordinate the work of state agencies that impact health disparities, which would likely reduce duplication of effort, increase efficiency, and more effectively address health outcome disparities.

Health impact assessment (HIA) policies

HIA attempts to ensure that all government programs and initiatives in and outside of the health care delivery sector—such as transportation, housing, and environmental protection—are assessed to determine their potential impact on the health status of affected communities.60 HIA is used extensively as a policy and planning tool in Europe and other countries, and is used increasingly in the United States. The San Francisco Department of Public Health, for example, has developed and implemented the Healthy Development Measurement Tool to identify and assess community health needs and understand how land use and development projects can complement public health goals. New York should determine whether state health care expansion proposals include use of health impact assessments to assist planning.

Conclusion

New York is synonymous with opportunity in the American vocabulary. In considering health care system proposals, we ask that you evaluate not only whether a greater number of residents will be insured, but also whether system reform proposals improve the equal opportunity of New York residents to access quality health care. We hope the equity benchmarks laid out above will assist in your evaluation process.


Notes:

1. N.Y. CONST. art. XVII, §§ 1, 3.

2. Civil Rights Act of 1964, tit. VI, 42 U.S.C. §2000d et seq.; Civil Rights Act of 1964, tit. VII, 42 U.S.C. §2000e et seq.; Nondiscrimintion Under Programs Receiving Federal Assistance Through the Department of Health and Human Services Effectuation of Title VI of the Civil Rights Act of 1964, 45 C.F.R. §80.3 (2005); Guidance to Federal Financial Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, 68 Fed. Reg. 47311 (2003)

2. International Convention on the Elimination of All Forms of Racial Discrimination, Dec. 21, 1965, 140 CONG. REC. 14326, 660 U.N.T.S. 195.

3. Medicaid Act, Pub. L. No. 89-97, tit. I, 79 Stat. 343 (1967); Hospital Survey and Construction Act (“Hill-Burton Act”), Pub. L. No. 88-443, 78 Stat. 447, 42 U.S.C. §§ 291-291(o) (1964).

4. Poll designed by Harvard School of Public Health and conducted by The Opportunity Agenda from October 24th to November 13th, 2006, with a representative sample of 479 New York State residents over the age of 18. The margin of error is +/-4.48% at the 95% confidence level.

5. N.Y. CONST. art. XVII, §3.

6. N.Y. CONST. art. XVII, §3. The text of the public health provision makes clear that it covers both the “protection” and the “promotion” of health, that it covers all “inhabitants” of the State, and that provision for such protection and promotion by state and municipal governments is mandatory. Courts have generally found that use of the term “shall” establishes a mandate. See, e.g., Nat’l Ass’n of Home Builders v. Defenders of Wildlife, 127 S. Ct. 2518, 2531-32 (2007) (finding the statutory language “shall approve” mandatory) (citing Lopez v. Davis, 531 U.S. 230, 241 (2001) (noting Congress'”use of a mandatory ‘shall’ . . . to impose discretionless obligations”); Lexecon Inc. v. Milberg Weiss Bershad Hynes & Lerach, 523 U.S. 26, 35 (1998) (“The mandatory ‘shall’ . . . normally creates an obligation impervious to judicial discretion”); Association of Civil Technicians v. FLRA, 22 F.3d 1150, 1153 (D.C. Cir. 1994) (“The word ‘shall’ generally indicates a command that admits of no discretion on the part of the person instructed to carry out the directive”); Black’s Law Dictionary 1375 (6th ed. 1990) (explaining that “[a]s used in statutes . . . this word is generally imperative or mandatory” and noting that in legal documents “shall” is construed as permissive only when necessary to carry out legislative intent or in cases where no right depends on its being taken in a mandatory sense). As the section of the state constitution on state finance explains: “Subject to the limitations on indebtedness and taxation, nothing in this constitution contained shall prevent the legislature from providing . . . for the protection by insurance or otherwise, against the hazards of unemployment, sickness and old age.”  NY CONST. art. VII § 8.

7. STATE COVERAGE INITIATIVES & ACADEMY HEALTH, STATE OF THE STATES: BUILDING HOPE AND RAISING EXPECTATIONS (2007).

8. Supra note 4.

9. INST. OF MEDICINE, CROSSING THE QUALITY CHASM: A NEW HEALTH SYSTEM FOR THE 21ST CENTURY (2001).

10. INST. OF MEDICINE, UNEQUAL TREATMENT: CONFRONTING RACIAL AND ETHNIC DISPARITIES IN HEALTH CARE (2003).

11. THE OPPORTUNITY AGENDA, DANGEROUS AND UNLAWFUL: WHY OUR HEALTH CARE SYSTEM IS FAILING NEW YORK AND HOW TO FIX IT 42 (2006), available here.

12. Id. at 4.

13. Id.

14. U.S. CENSUS BUREAU, INCOME, POVERTY, AND HEALTH INSURANCE COVERAGE IN THE US: 2006 (2007).

15. D. HOLAHAN ET AL., UNITED HOSPITAL FUND, HEATH INSURANCE COVERAGE IN NEW YORK, 2001 (2003).

16. THE OPPORTUNITY AGENDA, DANGEROUS AND UNLAWFUL, supra note 11.

17. INST. OF MEDICINE, UNEQUAL TREATMENT, supra note 10.

18. Id..

19. See, e.g., M.M. Doty & A.L. Holmgren, Health care disconnect: gaps in coverage and care for minority adults. Findings from the Commonwealth Fund Biennial Health Insurance Survey, 2005 (Commonwealth Fund, Issue Brief, 2006); J.L. Hargraves & J. Hadley, The contribution of insurance coverage and community resources to reducing racial/ethnic disparities in access to care, 38 HEALTH SERVS. RESEARCH 809, 809-29 (2003); M. Lillie-Blanton & C. Hoffman, The role of health insurance coverage in reducing racial/ethnic disparities in health care, 24 HEALTH AFFAIRS 398, 398-408 (2005); R.M. Weinick et al., Who can’t pay for health care?, 20 J. OF GEN. INTERNAL MED. 504, 504-09 (2005).

20. MELVIN L. OLIVER & THOMAS M. SHAPIRO, BLACK WEALTH, WHITE WEALTH (1997).

21. Kathryn Pitkin Derose et al., Immigrants and Health Care: Sources of Vulnerability, 26 Health Affairs 1285, 1258-68 (2007).

22. C. Brach & I. Fraser, Reducing disparities through culturally competent health care: an analysis of the business case, 10(4) QUALITY MGMT. IN HEALTH CARE 15-28 (2002).

23. OFFICE OF MINORITY HEALTH, U.S. DEP’T OF HEALTH & HUMAN SERVS., NATIONAL STANDARDS FOR CULTURALLY AND LINGUISTICALLY APPROPRIATE SERVICES IN HEALTH CARE.

24. Id. at 10-13. All recipients of federal funds are mandated to meet Standards 4, 5, 6, and 7, which are based on Title VI of the Civil Rights Act as applied to Limited English Proficiency (LEP) persons. Standard 4 requires provision of bilingual staff and interpreter services at all hours to LEP persons. Standard 5 requires provision of oral offers and written notices to patients, in their preferred language, of their right to receive language assistance services.  Standard 6 requires competence of language service providers and discourages the use of friends or family. Standard 7 requires materials and signage posted in the service area in languages of commonly encountered language populations.

25. INST. OF MEDICINE, IN THE NATION’S COMPELLING INTEREST: ENSURING DIVERSITY IN THE HEALTH CARE WORKFORCE (2004).

26. S.L Taylor & N. Lurie, The role of culturally competent communication in reducing ethnic and racial healthcare disparities, 10 AM. J. OF MANAGED CARE Spec. No.:SP1-4 (2004)

27. INST. OF MEDICINE, UNEQUAL TREATMENT (2003).

28. Cal. AB 8, 2007-08 Reg. Sess., § 1366.10 (2007).

29. C. Brach et al., Who’s enrolled in the State Children’s Health Insurance Program (SCHIP)? An overview of findings from the Child Health Insurance Research Initiative (CHIRI), 112 PEDIATRICS e499 (2003); D.C. Ross & I.T. Hill, Enrolling eligible children and keeping them enrolled, 13 FUTURE CHILD 81, 81-97 (2003); M.C. Morreale & A. English, Eligibility and enrollment of adolescents in Medicaid and SCHIP: recent progress, current challenges, 32 J. OF ADOLESCENT HEALTH 25, 25-39 (2003).

30. L.P. Shone et al., The role of race and ethnicity in the State Children’s Health Insurance Program (SCHIP) in four states: are there baseline disparities, and what do they mean for SCHIP?, 112 PEDIATRICS e521 (2003).

31. R.T. Perot & M. Youdelman, Racial, ethnic and primary language data collection in the health care system: An assessment of federal policies and practices (Commonwealth Fund, Commonwealth Fund Publication No. 492, Sept. 2001). S.D. Watson, Equity measures and systems reform as tools for reducing racial and ethnic disparities in health care (Commonwealth Fund, Commonwealth Fund Publication No. 776, Aug. 2005).

32. R.T. Perot & M. Youdelman, supra note 21; INST. OF MEDICINE, UNEQUAL TREATMENT (2003).

33. P.L. Casalino & A. Elster, Will Pay-For-Performance and quality reporting affect health care disparities?, 26 HEALTH AFFAIRS w405-14; R.G. Hood, Pay-For-Performance—Financial Health Disparities and the Impact on Healthcare Disparities, 99 J. OF THE NAT’L MED. ASS’N 953, 953-58 (2007).

34. INST. OF MEDICINE, UNEQUAL TREATMENT (2003).

35. D. Kalauokalani et al., Can patient coaching reduce racial/ethnic disparities in cancer pain control? Secondary analysis of a randomized controlled trial, 8 PAIN MED. 17, 17-24 (2007).

36. INST. OF MEDICINE, UNEQUAL TREATMENT (2003).

37. H.P. Freeman, Patient navigation: a community centered approach to reducing cancer mortality, 21 J. CANCER EDUC. Suppl. S11, S11-14 (2006); M.L. Steinberg et al., Lay patient navigator program implementation for equal access to cancer care and clinical trials: essential steps and initial challenges, 107 Cancer 2669, 2669-77 (2006). 38 N.Y. State Dep’t of Health, Community Health Worker Program.

39. COMMUNITY VOICES, COMMUNITY HEALTH WORKERS AND COMMUNITY VOICES: PROMOTING GOOD HEALTH (2003).

40. Id. at 13-14.

41. Kaiser Comm’n on Medicaid & the Uninsured, Stresses to the Safety Net: The Public Hospital Perspective, June 2005; J. Hadley et al., Would safety- net expansions offset reduced access resulting from lost insurance coverage?  Race/Ethnicity differences, 25 HEALTH AFFAIRS 1679 (2006). Also note that New York provides Medicaid coverage to eligible documented immigrants, increasing the importance of safety-net institutions for many New Yorkers. Aliessa v. Novello, 96 N.Y.2d 418 (2001).

42. D.P. Andrulis, L.M. Duchon, SUNY Downstate Med. Ctr., Hospital care in the 100 largest cities and their suburbs, 1996-2002: Implications for the future of the hospital safety net in metropolitan America, Aug. 2005.

43. HHS was called the “Department of Housing and Urban Development” at the time of the statement. N.Y. State Assembly, Press Release, Health Care Reform Act of 2000 (1999).

44. P. Cunningham, Mounting pressures: physicians serving Medicaid patients and the uninsured, 1997-2001 (Center for Studying Health System Change, Tracking Report No. 6, Dec. 2002); P. Cunningham & J. May, Medicaid patients increasingly concentrated among physicians (Center for Study Health System Change, Tracking Report No. 16, Aug. 2006).

45. D.A. Conrad, Community care networks: linking vision to outcomes for community health improvement, 60 MED. CARE: RESEARCH & REV. Suppl. 95, 95-129 (2003); S. Sofaer, Community health planning in the United States: a postmortem, 10(4) FAMILY & COMMUNITY HEALTH 1, 1-12 (1988); R. Weech-Maldonado et al., Evaluating the effectiveness of community health partnerships: a stakeholder accountability approach, 26 J. OF HEALTH & HUMAN SERVS. ADMIN. 58, 58-92 (2003); L.B. LANDRUM, HEALTH PLANNING IS ALIVE AND WELL, AM. HEALTH PLANNING ASS’N.

46. N.Y. PUB. HEALTH § 2904-b.

47. Calling Upon the Legislature of the State of New York to Amend the Health Care Reform Act to Reauthorize Funding for Health Systems Agencies (Mar. 24, 1998); Judy Wessler, Comm’n on the Public’s Health System, Press Advisory, The Need for Health Planning (undated; on file with Judy Wessler, Comm’n on the Public’s Health System).

48. See Finger Lakes Health Systems Agency, Current Projects.

49. D.B. Smith, Eliminating Disparities in Treatment (Commonwealth Fund, Aug. 2005).

50. Public need considers the hospital’s impact on the specific population demographic regarding access to specific health services, facility utilization patterns and how the hospital will affect the epidemiology of certain relevant diseases in the community.  Financial feasibility examines the hospital’s financial health, projected costs and potential profits/expenses regarding the specific project. Character/competence examines the hospital’s prior experience and success in operating a healthcare facility. Finally, construction deals with the hospital’s adherence to pertinent New York State regulations regarding the building of healthcare facilities.

51. In determining whether an application for construction, expansion, conversion should be granted, DOH is required to consider public need, as well as financial feasibility, character and competence, and construction. In determining whether to revoke an operating certificate, DOH is also required to consider public need; but in its approval of voluntary closures DOH has argued that it need not consider health needs. See N.Y. State Dep’t of Health, Certificate of Need Review Criteria.

52. In the mid-1980s, in response to a Title VI complaint filed by Legal Services of New York and New York Lawyers for the Public Interest, DOH entered negotiations with advocates and agreed to add a form to its Certificate of Need application that would address concerns about access to health care. Telephone interview with Judy Wessler, Director, Commission on the Public’s Health System (Nov. 16, 2006). The form, at the time identified as Schedule 18, required health care facilities to address access to facilities, including language access, in their applications and obligated DOH to weigh such issues in deciding whether to approve applications. Id. Schedule 18 no longer addresses health care access issues; it now applies to Residential Health Care Facilities. N.Y. State Dep’t of Health, Schedule 16 – CON Forms Specific to Residential Health Care Facilities. But this requirement was only enforced for a short time, while legal and community groups reviewed DOH procedures. The parts of the current Certificate of Need application that address issues of access and public need must once again be reviewed and enforced. A specific schedule is designated for each Article 28 facility. Schedule 16 applies to hospitals and Schedule 17 applies to Diagnostic and Treatment Center. N.Y. State Dep’t of Health, Schedule 16 – CON Forms Specific to Hospitals; N.Y. State Dep’t of Health, Schedule 16 – CON Forms Specific to Diagnostic and Treatment Centers (D&TC). Only Schedule 16 appears to require a facility access analysis for hospitals.  See N.Y. State Dep’t of Health, Schedule 16 – CON Forms Specific to Hospitals, supra.

53. DAVID BARTON SMITH, ELIMINATING DISPARITIES IN TREATMENT AND THE STRUGGLE TO END SEGREGATION

(2005) (“Currently, specialized services such as open-heart surgery are moving from the inner suburbs of most urban areas to the outer ones, following white flight and urban sprawl. Market and convenience justifications mask a resegregation of care that increases the cost of health care and reduces its quality.”).

54. In Fiscal Year 2002-2003 only 2.8% of the complaints filed with the State Division complained of discrimination in public accommodations; in Fiscal Year 2003-2004, the number increased slightly to 3.1%. N.Y. State Div. of Human Rights, Annual Report, Website Ed., Fiscal Years 2002/2003-2003/2004.

55. The Division is empowered to develop human rights plans and policies for the state and to assist in their execution. The Division may convene “advisory councils, local, regional or state-wide . . . to study the problems of discrimination in all or specific fields of human relationships or . . . specific instances of discrimination because of age, race, creed, color, national origin, sexual orientation, military status, sex, disability[,] or marital status and [to] make recommendations to the division for the development of policies and procedures.” N.Y. EXEC. LAW § 295(8) (2006); see also N.Y. EXEC. LAW § 295(6)(b) (2006); N.Y. EXEC. LAW § 295(9) (2006); 18 N.Y. JUR. CIV. RTS. § 14 (2006).

56. DENNIS D. PARKER, STATE REFORM STRATEGIES, IN AWAKENING FROM THE DREAM 317, 322 (Denise Morgan, et al., eds., 2006). States have brought civil rights cases alleging discrimination in housing, public accommodations, access to health care, and employment, under parens patrie standing.

57. H. 2234, 185th Gen. Court (Ma. 2007).

58. A 3-year project that brought together legislators, community members, and experts in health and health care. Comm’n to End Racial & Ethnic Health Disparities, Final Report (Aug. 2007).

59. Id.

60. A.L. Dannenberg et al., Growing the field of health impact assessment in the United States: an agenda for research and practice, 96 Am. J. of Public Healt 262, 262-70 (2006).

close search

Hot Topics: