ELIZABETH WARREN UNITED STATES SENATE WASHINGTON, DC 20510 2105 p 202 224 -<1!>43 MASSACHUSETTS COMMITlUS BANKING, HOUSING, AND URBAN AFFAIRS HEALTH, EDUCATION, LABOR, AND PENSIONS linitcd ~rotes ~rnatr ARMED SERVICES 2400 JFK FEDERAL BUILDING 15 NEW SUDBURY STREET BOSTON, MA 02203 p 617-565-3170 1550 MAIN STREET SUITE 406 SPRINGFIELD, MA 01103 P: 413- 7~ 2690 SPECIAL COMMITTEE ON AGING www.warren senate gov April 24, 2018 The Honorable Ben Carson U.S. Department of Housing and Urban Development 451 7th Street, SW Washington, DC 20410 Dear Secretary Carson, On March 30, 2018, President Trump declared April 2018 as National Fair Housing Month and announced that his Administration " intends to deliver on the promise outlined by the Fair Housing Act, by ending prejudice and unlawful discriminatory practices ... [and] expanding the avai lability of affordable housing." 1 The Department of Housing and Urban Development (HUD) is the main agency charged with administering and enforcing the Fair Housing Act. I write to express concern that HUD, under your direction, has so far failed in that mission, and to request information on how HUD plans to combat housing discrimination. Fifty years after the Fair Housing Act became law, housing discrimination remains a serious problem in the United States. According to a recent study by the Center for Investigative Reporting and Reveal, minority borrowers are more likely to be denied a mortgage than similar white borrowers in 61 metropolitan areas-even after controlling for loan amounts, 2 neighborhoods, and applicants' income. To combat housing and lending discrimination, it is critical that federal regu lators uphold and enforce the rules put in place to protect American communities. HUD's Office of Fair Housing and Equal Opportunity is tasked with eliminating housing discrimination and enforcing the Fair Housing Act. In FY 2016 alone, HUD and 85 Fair Housing Assistance Program agencies conducted over 8,300 investigations into complaints of housing discrimination, and found cause for action in more than half of these cases, securing over $25 million in monetary relief for discrimination victims. 3 1 President Donald J. Trump, " President Donald J. Trump Proclaims April 2018 as National Fair Housing Month," The White House (March 30, 20 18) (Online at https://www.whitehouse.gov/presidential-actions/president-donald-jtrump-proclaims-april-2018-national-fair-housing-monthL). 2 Aaron Glantz and Emmanuel Martinez, " For people of color, banks are shutting the door to homeownership," Reveal (February 15, 2018) (Online at: https://www.revealnews.org/article/ for-people-of-color-banks-are-shuttingthe-door-to-homeownershipD. 3 Office of Fair Housing and Equal Opportunity "Annual Report to Congress FY2016," HUD (January 19, 2017) (Online at: https://www.hud.gov/sites/documents/FY20 I 6Fl-IEOANNUALREPORT.PDF). U11der yottr leadership, 1-IUD has also failed to imple1nent rules that would help end '"unlav.rful discriminatory practices." Under the Fair Housi11g Act, I-IUD is charged with co1ubating 11ousing discrin1ination and "affirmatively ft1rther[ing] fair housi11g. " 4 1-Iowever. O\'er tl1e past year, I-IUD has taken a nu1uber of steps that threaten to undennine existing fair housing laws and regulations. The Departt11ent delayed the effecli\'e date of the Affi1mativcly Furthering Fair I-lousing rule that would require co1nmunities requesting block grants fron1 HUD to analyze 11ousing and lending obstacles faced by nlinority residents and propose plans to address them. 5 It })lit a hold on several fair 11ot1sing in\'estigations that the Oba1ua adn1inistration prioritized. 6 It also attempted to delay the in1plementation of the Small Area Fair Mark.et Rent rule, \Vhich n1akes it easier for people receiving housing subsidies to live i11 high-oppotit1nity neighborhoods, relenting only afler a judge's ruling requiri11g t11e Departinent to imple1nent tl1e rule iminediately. 7 Furtbern1ore, recent reports indicate that you 11ave proposed rcmo\ ing la11guage from 1-IUD's 1nission staten1ent referring to HUD's con1n1itment to anti-discri1nination. 8 1 This is a disturbing pattern of undermining ai1d failing to enforce l1ot1sing and lending laws. In order to better understand how f-IUD under your direction has fulfilled and \Vil! continue to fulfill the President's vov.-· to "deliver on the pron1ise outlined by the Fair I-lousing Act," I ask tl1at you provide answers to the follo\ving questions 110 later tl1an May 8, 2018: 1. ln your niost recent ap1)earance before tl1e Se11ate Banking Co1n1nittee, you stated that HUD is ''constantly invol\'ed in lawsttits that [it has] brought against people for housing discrin1ination"9 and promised to follow llp on how many lawsuits HlJD has initiated since your confirmation. How many lawst1its, specifically dealing \Vith housi11g discrii11i11ation, bas I-IUD initiated since your confi1mation? Please provide a list of these lav..1suits and a11y resolution. 2. The FY 2019 budget proposal fron1 the White I-Io use reduced funding for I-IUD by "$8.8 billion or 18.3-percent decrease from the 2017 enacted level. " 10 I-low would this significant redttction in HUD's budget affect the Department's efforts in co111bating housing discrimination? 4 Executive Order 12892 ·'Leadership and coordination of fair housing in federal progra111s: affinnative!y furthering fair housing,'· Housing and Urban Deve!op1nent (January 17, l 994) (Online at: https://\V\V\V .hud.gov/progran1 offices/fair housing equal opp/Fl--ILaws/EXO 12892). 5 En1ily Badger and John E!igon, "Trump Administration Postpones an Obama Fair-I--Iousing Rule," The Ne>v York Ti111es (January 4, 20 l 8) (Online at: https:!/www.nyti1nes.con1/2018/0 I /04/upshot/truinp-delays-hud-fair-housingobama-rule.html). 6 Glenn Thrush, "Under Ben Carson, HUD Scales Back Fair Housing Entbrcetnent,'' The 1Ve1v York Ti1nes (March 28, 20 l 8) (Online at: https://wwv.'.nvtimes.con1/20 l 8/03/28/us/bcn-carson-hud-fair-housing-discri1nination.ht1nl). 7 Amanda Michelle Gomez, ''Federal judge green-lights desegregation housing rule after Carson tries to block it,'' ThinkProgress. (Decen1ber 14, 20 l 7) (Online at: https://thinkprogress.org/federal-judge-green-lights-descgregationhousing-rule-after-carson-tries-to-block-it-58f03e55f20c/). 8 An1anda Terkel, "Ben Carson Removes Anti-Discri1nination Language Fron1 HUD Mission Statement," H11!Jington Pas/ (March 06, 2018) (Online at: https://v.•\\'\.\' .huffingtonpost.co1nlent1}'/hud-n1issionstate1nent us 5a9f5db0e4b002df2c5ec6!7). 9 C-span "Oversight ofl·Iousing and Urban Development,'' (March 22, 2018) (Online at: https://W\\'W.es?an. org/v !deo/?44 27 4 7- 1/hud~secretary-be~-carson-t~sti fies-oversight-hearing). . 1 The Wlute House "An Arnencan Budget, Office of Afanage111ent and B1u!ge1, (Online at: https://w\\'\V. whitehouse.gov/\vp-contenUuploads/20\8/02/budget-fy2019 .pdD, Pg. 63. 3. On January 5, 20 18, you delayed the 2015 Affirmatively Furthering Fair Housing rule to 11 October 2020. Has this helped reduce housing discrimination? If so, how? 4. Before the Court's ruling, you had delayed the implementation of the Small Area Fair Market Rent Rule for two years. 12 Has this helped reduce housing discrimination? If so, how? 5. How does HUD measure the effectiveness of the department's efforts to reduce housing discrimination? Please provide an analysis of the agency's performance over the last two years. 6. Please describe any HUD initiatives in place, beyond the ones discussed in this letter, to address housing discrimination. Sincerel y, 11 "A ffirmatively Furthering Fair Housing: Extension of Deadline for Submission of Assessment of Fair Housing for Consolidated Plan Participants," Federal Register, (January 5, 2018) (Online at: hnps://www.federalregister.gov/documents/2018/0 l/05/20 18-00106/affirmatively-furthering-fair-housingextension-of-deadline-for-submission-of-assessment-of-fair). 12 Amanda Michelle Gomez, " Federal judge green-lights desegregation housing rule after Carson tries to block it," Think Progress, (December 14, 2017) (On line at: https://thinkprogress.org/federal-judgc-green-lights-desegregationhousing-rule-after-carson-tries-to-block-it-58f03e55t20el).