[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR572.405]

[Page 188-190]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 572_HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM (HOPE 3)--Table of Contents
 
                  Subpart E_Other Federal Requirements
 
Sec. 572.405  Nondiscrimination and equal opportunity requirements.

    In addition to the nondiscrimination and equal opportunity 
requirements set forth in 24 CFR part 5, the following requirements 
apply to homeownership programs under this part:
    (a) Modification of fair housing and nondiscrimination requirements 
for Indian tribes and IHAs. (1) The Indian Civil Rights Act (25 U.S.C. 
1301 et seq.) applies to tribes when they exercise their powers of self-
government. Thus, it is applicable in all cases when an IHA has been 
established by exercise of such powers. In the case of the IHA 
established pursuant to State law, the applicability of the Indian Civil 
Rights Act shall be determined on a case-by-

[[Page 189]]

case basis. Development subject to the Indian Civil Rights Act must be 
developed and operated in compliance with its provisions and all 
implementing HUD requirements, instead of title VI and the Fair Housing 
Act and their implementing regulations.
    (2) In the case of Indian tribes and IHAs, compliance with the 
requirements of this section shall be to the maximum extent consistent, 
but not in derogation of, the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b)).
    (b) Affirmative fair housing marketing. The recipient must adopt a 
strategy for informing and soliciting applications from people who are 
least likely to apply, because of race, color, religion, sex, 
disability, familial status, or national origin, for the program without 
special outreach, consistent with the affirmative fair housing marketing 
requirements. (See 24 CFR 92.351 for an example of an affirmative 
strategy.) Paragraph (b) of this section does not apply to Indian tribes 
and IHAs, as described in paragraph (a)(1) of this section.
    (c) Authority for collection of racial, ethnic, and gender data. HUD 
requires submission of racial, ethnic, and gender data under this part 
under the authority of section 562 of the Housing and Community 
Development Act of 1987 and section 808(e)(6) of the Fair Housing Act.
    (d) Faith-based activities. (1) Organizations that are religious or 
faith-based are eligible, on the same basis as any other organization, 
to participate in the HOPE 3 program. Neither the Federal government nor 
a State or local government receiving funds under HOPE 3 programs shall 
discriminate against an organization on the basis of the organization's 
religious character or affiliation.
    (2) Organizations that are directly funded under the HOPE 3 program 
may not engage in inherently religious activities, such as worship, 
religious instruction, or proselytization, as part of the programs or 
services funded under this part. If an organization conducts such 
activities, the activities must be offered separately, in time or 
location, from the programs or services funded under this part, and 
participation must be voluntary for the beneficiaries of the HUD-funded 
programs or services.
    (3) A religious organization that participates in the HOPE 3 program 
will retain its independence from Federal, State, and local governments, 
and may continue to carry out its mission, including the definition, 
practice, and expression of its religious beliefs, provided that it does 
not use direct HOPE 3 funds to support any inherently religious 
activities, such as worship, religious instruction, or proselytization. 
Among other things, faith-based organizations may use space in their 
facilities to provide HOPE 3-funded services, without removing religious 
art, icons, scriptures, or other religious symbols. In addition, a HOPE 
3-funded religious organization retains its authority over its internal 
governance, and it may retain religious terms in its organization's 
name, select its board members on a religious basis, and include 
religious references in its organization's mission statements and other 
governing documents.
    (4) An organization that participates in the HOPE 3 program shall 
not, in providing program assistance, discriminate against a program 
beneficiary or prospective program beneficiary on the basis of religion 
or religious belief.
    (5) HOPE 3 funds may not be used for the acquisition, construction, 
or rehabilitation of structures to the extent that those structures are 
used for inherently religious activities. HOPE 3 funds may be used for 
the acquisition, construction, or rehabilitation of structures only to 
the extent that those structures are used for conducting eligible 
activities under this part. Where a structure is used for both eligible 
and inherently religious activities, HOPE 3 funds may not exceed the 
cost of those portions of the acquisition, construction, or 
rehabilitation that are attributable to eligible activities in 
accordance with the cost accounting requirements applicable to HOPE 3 
funds in this part. Sanctuaries, chapels, or other rooms that a HOPE 3-
funded religious congregation uses as its principal place of worship, 
however, are ineligible for HOPE 3-funded improvements. Disposition of 
real property after the term of the grant, or any

[[Page 190]]

change in use of the property during the term of the grant, is subject 
to government-wide regulations governing real property disposition (see 
24 CFR parts 84 and 85).
    (6) If a State or local government voluntarily contributes its own 
funds to supplement federally funded activities, the State or local 
government has the option to segregate the Federal funds or commingle 
them. However, if the funds are commingled, this section applies to all 
of the commingled funds.

[58 FR 36526, July 7, 1993, as amended at 59 FR 33894, June 30, 1994; 61 
FR 5209, Feb. 9, 1996; 68 FR 56405, Sept. 30, 2003]