HUD Releases Guidance on Subsidized Multifamily Housing

The Department of Housing and Urban Development recently released new guidance to reinforce requirements that HUD-subsidized multifamily housing’s marketing and application processes be designed to be inclusive of persons of all races and national origins.

The two new guidance pieces, “Guidance on Compliance with Title VI of the Civil Rights Act in Marketing and Application Processing at Subsidized Multifamily Properties” and “Implementation Sheet for HUD’s Title VI Guidanceclarify how certain marketing, rental application processing, and waitlist management practices can perpetuate segregation or otherwise discriminate in violation of Title VI of the Civil Rights Act. The guidance is designed to assist property owners in understanding and implementing more inclusive practices less likely to produce discriminatory results.

The guidance applies to the more than 1.5 million HUD-subsidized multifamily units nationwide, including Project-Based Rental Assistance, Section 202, and Section 811 subsidized units.

Question of the Week

Q. What does the FCRA require us to do if we report credit information to the credit bureaus? 

A. The FCRA requires furnishers to have reasonable policies and procedures regarding the accuracy and integrity of furnished information.

  • Policies and procedures. Each furnisher must establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes to a consumer reporting agency. The policies and procedures must be appropriate to the nature, size, complexity, and scope of each furnisher’s activities.
  • Guidelines. Each furnisher must consider the guidelines in appendix E of this part in developing its policies and procedures required by this section and incorporate those guidelines that are appropriate.
  • Reviewing and updating policies and procedures. Each furnisher must review its policies and procedures required by this section periodically and update them as necessary to ensure their continued effectiveness.

Creditors should review Appendix E to the FCRA for interagency guidance on how to comply with this requirement.

Related Links

12 CFR 1022.42
Appendix E to Part 1022

Compliance Alerts

Consumer Financial Protection Bureau

Supervisory Highlights, Issue 26, 2022: The Bureau released this edition of the Supervisory Highlights on its website on May 2. The findings included in this report cover examinations completed between July 2021 and December 2021 in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittances, and student loan servicing.

CFPB Orders Bank of America to Pay $10 Million Penalty for Illegal Garnishments: The Consumer Financial Protection Bureau finalized an enforcement action against Bank of America for processing illegal, out-of-state garnishment orders against its customers’ bank accounts. Bank of America unlawfully froze customer accounts, charged garnishment fees, garnished funds, and sent payments to creditors based on out-of-state garnishment court orders that should have been processed under the laws and protections of the states where the consumers lived.

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.

Posted in Compliance News, Compliance News, Compliance Question.