[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR107.51]

[Page 665]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
    CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 107--NONDISCRIMINATION AND EQUAL OPPORTUNITY IN HOUSING UNDER EXECUTIVE ORDER 11063--Table of Contents
 
Sec. 107.51  Findings of noncompliance.

    (a) A finding of noncompliance shall be made when the facts 
disclosed during an investigation or compliance review, or other 
information, indicate a failure to comply with the provisions of E.O. 
11063 or this part. In no event will a finding of noncompliance precede 
the completion of the compliance meeting procedures set forth in 
Sec. 107.40.
    (b) Determinations of noncompliance with E.O. 11063 shall be made in 
any case in which the facts establish the existence of a discriminatory 
practice under Sec. 107.15(g)
    (c) The existence or use of a policy or practice, or any 
arrangement, criterion or other method of administration which has the 
effect of denying equal housing opportunity or which substantially 
impairs the ability of persons, because of race, color, religion 
(creed), sex or national origin, to apply for or receive the benefits of 
assistance shall be a basis for finding a discriminatory practice unless 
the respondent can establish that:
    (1) The policy or practice is designed to serve a legitimate 
business necessity or governmental purpose of the respondent;
    (2) The policy or practice effectively carries out the interest it 
is designed to serve; and
    (3) No alternative course of action could be adopted that would 
enable respondent's interest to be served with a less discriminatory 
impact.

[45 FR 59514, Sept. 9, 1980, as amended at 50 FR 31360, Aug. 2, 1985]