Case Document 1-1 Filed 05/10/16 Page 1 of 19 Page ID #21

Exhibit A

Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 2 of 19 Page ID #22

U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
FHEO Region V
Ralph H. Metcalfe Federal Building
77 West Jackson Boulevard - Room 2101
Chicago, Illinois 60604-3507
Office of Fair Housing and Equal Opportunity

September 30, 2014
Irene McBride, Board Chair
Alexander County Housing Authority
c/o Martha Franklin, Executive Director
100 Ohio Street
Cairo, Illinois 62914-0191
Dear Ms. McBride:
SUBJECT:

Letter of Findings of Noncompliance
Civil Rights Compliance Review of the Alexander County Housing Authority
Title VI Review Number: 05-14-R002-6

On May 30, 2014, the United States Department of Housing and Urban Development ("HUD"),
Office of Fair Housing and Equal Opportunity ("FHEO"), initiated a compliance review of the
Alexander County Housing Authority ("ACHA"). FHEO reviewed compliance with Title VI of
the Ci vii Rights Act, Section 504 of the Rehabilitation Act, 1 and Section 3 of the Housing and
Urban Development Act. 2 FHEO investigators from the Chicago Regional Office and the Denver
Regional Office conducted an on-site review from June 24 through June 26, 2014.
In addition to the FHEO review, other HUD program offices, including the Office of Public and
Indian Housing ("PIH"), the Office of Labor Relations, and the Departmental Enforcement
Center simultaneously reviewed ACHA's compliance with their offices' respective regulations.
The review was prompted by findings made under a previous PIH review, initiated on September
10, 2013.

Applicable Law
Title VI prohibits discrimination on the ground of race, color, or national origin in programs and
activities receiving Federal financial assistance. Specifically, Title VI provides that" ... No
person in the United States shall, on the ground of race, color or national origin, be excluded
from participation in, be denied the benefits of, or be subjected to discrimination under any
program or activity receiving Federal financial assistance." 42 U.S.C. § 2000d. The

1

2

Published under separate cover as Section 504 Review Number: 05-14-R004-4.
Published under separate cover as Section 3 Review Number: 05-14-R004-3.

1

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 3 of 19 Page ID #23

implementing regulations provide specific prohibitions which include, but are not limited to the
following:
A recipient under any program or activity to which this part applies may not,
directly or through contractual or other arrangements, on the ground of race, color
or national origin: Subject 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. 24 C.F.R. §
l.4(b)(l)(iii).
A recipient, in determining the types of housing, accommodations, facilities,
services, financial aid, or other benefits which will be provided under any such
program or activity, or the class of persons to whom, or the situations in which,
such housing, accommodations, facilities, services, financial aid, or other benefits
will be provided under any such program or activity, or the class of persons to be
afforded an opportunity to participate in any such program or activity, may not,
directly or through contractual or other arrangements, utilize criteria or methods
of administration which have the effect of subjecting persons 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 or
activity as respect to persons of a particular race, color, or national origin. 24
C.F.R. § l .4(b )(2)(i).
A recipient under any program or activity to which this part applies may not,
directly or through contractual or other arrangements, on the ground of race, color
or national origin: Deny a person opportunity to participate in the program or
activity through the provision of services or otherwise, or afford him an
opportunity to do so which is different from that afforded others under the
program or activity (including the opportunity to participate in the program or
activity as an employee but only to the extent set forth in paragraph (c) of this
section). 24 C.F.R. §1.4(b)(l)(vi).
Where the primary objective of the Federal financial assistance is not to provide
employment, but discrimination on the ground of race, color, or national origin in
the employment practices of the recipient or other persons subject to this [] part
tends, on the ground of race, color, or national origin, to exclude individuals from
participation in, to deny them the benefits of, or to subject them to discrimination
under any program to which this [] part applies, the provisions of this paragraph
(c) shall apply to the employment practices of the recipient or other persons
subject to this [] part to the extent necessary to assure equality of opportunity to,
and nondiscriminatory treatment of, beneficiaries. 24 C.F.R. § l.4(c)(2).
In administering a program regarding which the recipient has previously
discriminated against persons on the ground of race, color, or national origin, the
recipient must take affirmative action to overcome the effects of prior
discrimination. 24 C.F.R. § l .4(b )(6)(i).
2

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 4 of 19 Page ID #24

Under Title VI, a violation occurs if the recipient directly discriminated against an individual or
group on the ground of race. It further provides that a violation occurs when a policy or method
of administration has the effect of subjecting persons to discrimination. Whether a violation
occurs due to the intentional actions of a recipient, or as a result of a metho·d of administration,
corrective action must be taken to prevent further discrimination and regain compliance with
federal civil rights laws and regulations. Additionally, a violation will occur under Title VI based
on the recipient's employment practices if the discriminatory practices have an adverse effect on
the recipient's program participants. Finally, a violation will occur for failing to take affirmative
action to overcome a previous finding of discrimination on the basis of race.
A recipient of Federal financial assistance is defined as follows:
[A]ny State, political subdivision of any State, or instrumentality of any State or
political subdivision, any public or private agency, institution, organization, or
other entity, or any individual, in any State, to whom Federal financial assistance
is extended, directly or through another recipient, for any program or activity, or
who otherwise participates in carrying out such program or activity (such as a
redeveloper in the Urban Renewal Program), including any successor, assign, or
transferee thereof, but such term does not include any ultimate beneficiary under
any such program or activity. 24 C.F.R. § l.2(f).
The Civil Rights Restoration Act of 1987 amended Title VI by adding an expansive definition of
"program or activity." It provides that, for purposes of Title VI the following:
[T]he term "program or activity" and the term "program" mean all of the
operations of(A) a department, agency, special purpose district, or other instrumentality of a
State or of a local government; or
(B) the entity of such State or local government that distributes such assistance
and each such department or agency (and each other State or local government
entity) to which the assistance is extended, in the case of assistance to a State or
local government; any part of which is extended Federal financial assistance. 42
U.S.C. §2000d-4a(l)(A) and (l)(B) (emphasis added).
Generally, the entire operation of a municipal corporation such as a public housing authority is
considered to be a program or activity for the purposes of Title VI. In this case, the "program or
activity" subject to this Title VI review is the entirety of the operations of the ACHA, including,
but not limited to the management of its low-income public housing program.

Background
The ACHA manages public housing in the Cairo, Illinois area, including the areas outside of the
City of Cairo, but within Alexander County, Illinois. Based on interviews and correspondence
with HUD PIH staff, local advocates, and other stakeholders, FHEO decided to focus its Title VI
review on the following allegations:
3

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 5 of 19 Page ID #25

(1) That the residents of the public housing units are segregated on the basis of race; and
(2) That there is employment discrimination by ACHA on the basis of race, that has the
effect of adversely impacting the ACHA's program participants.
According to the 2012 American Community Survey, Alexander County contains a total of
8,147 people, of whom 61.7% are white and 34.8% are African-American. The median
household income is $27,248, a.nd it is estimated that 21.l % of those households' income is
below the federal poverty level.
With respect to the City of Cairo, the 2012 American Community Survey estimates that there are
2,812 residents. Of those, 26.9% are white and 69.5% are African-American. It is estimated that
50.6% of those families' incomes are below the federal poverty level.
At the time of the review, ACHA was housing individuals and families in 435 units.3
Additionally, there were 43 vacant units that could potentially be occupied by tenants, bringing
the total number of units in the housing authority's control to 478. With respect to the occupied
units, 129, or 29.7%, contain at least one individual who is classified as disabled. 4 Out of the
same total number of occupied units, 347, or 79.8%, contain a head-of-household who is
classified as "Black." Notably, ACHA has not received HUD approval to designate any of its
buildings as "senior." 5 ACHA defines "senior" housing as a unit occupied by a person older than
50 years old, and without children under the age of 18.
ACHA refers to its buildings and clusters of housing by "AMP" number. 6 AMP 1 is comprised
of family public housing within the City of Cairo, that of McBride Place and Elmwood Place.
These two facilities combine for 247 units, more than half of the total number of ACHA units.
McBride Place consists of a mixture of 1 to 6-bedroom units, and Elmwood Place is a mixture of
1 to 4 bedroom units. These buildings were built in the 1940s and are over 70 years old.

AMP#
AMPl

# of Occupied
Units
247

% of total
ACHA Units
56.8%

AMP2

92

21.1%

AMP3

96

22.1%

Chart 1
AMP 2 is comprised of "scattered-site" housing. This refers to individual or smaller clusters of
A CHA-operated facilities throughout its service area. Two of the scattered-site facilities (40 total
3

ACHA does not currently manage a "Section 8" housing choice voucher program.
ACHA's disability classification does not distinguish between "physical" and "mental" disability.
5
See HUD PIH Notice 2005-2.
6
Asset Management Projects. This is a classification system used by HUD for funding purposes.
4

4

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 6 of 19 Page ID #26

occupied units), Mary Alice Meadows and Sunset Terrace, are located within the town of
Thebes, Illinois, which is approximately 25 miles away from the City of Cairo. The remaining
scattered-site units are located within the City. Many of these units are tenanted by seniors and
people with disabilities. These buildings consist of a mixture of 1, 2, 3 and 4 bedroom units.
Finally, AMP 3 is comprised of two so-called "high-rise" buildings within the City of Cairo,
consisting of 96 total units. The two buildings, Connell Smith and Shuemaker, are located very
close to each other, within the City of Cairo. The ACHA's administrative headquarters is located
inside of Connell Smith. As with many of the scattered-site units, these buildings are occupied
by seniors and people with disabilities. The units in Connell Smith are a mixture of studio, 1 and
2 bedrooms, whereas the units in Shuemaker are all 1 bedroom.
The managerial staff at ACHA includes the current Executive Director, Martha Franklin, who
has worked in that capacity since early 2013. Franklin's duties include managing the day-to-day
operations of the housing authority. In addition, Franklin is in charge of approving or denying
reasonable accommodation requests. Prior to that, Franklin was the Finance Director, where she
worked as an assistant to the former Executive Director, James Wilson. Franklin's son-in-law,
James Renfrow, also works at the ACHA as a Maintenance Technician.
Donna Holman is the Chief Leasing Officer and Assistant Site Manager. Holman has been at the
ACHA for 28 years. Her duties include managing the entire process of move-ins, move-outs,
transfers, updating records, and lease enforcement. Holman also receives reasonable
accommodation requests from residents. Holman is responsible for supervising two leasing and
occupancy clerks, as well as the maintenance staff. Holman's husband John previously worked
as a part-time Maintenance Technician.
The ACHA Board is comprised of five members, Irene McBride (Chairperson), who is also the
resident member, Judson Childs (Vice-President), Mike Brey, John Price, and Jimmy Huffman.
Chairperson McBride has been on the ACHA board for 12 years, has lived in Cairo for 72 years,
and has lived in public housing (Elmwood Place) for 40 years. When asked about her duties as
board chair, McBride stated that she attends meetings. When asked what type of issues are
discussed by the board, McBride did not respond. When asked what type of decisions have been
made recently by the board, McBride replied that: "I really can't say." McBride offered that, as
President of the Elmwood Tenant Council, McBride uses money received from HUD to purchase
gifts for all the mothers at Elmwood on Mother's Day, and for all the fathers at Elmwood on
Father's Day. Finally, HUD staff observed ACHA staff escorting McBride to and from the
conference room where the interview took place.
Commissioner Childs (former Mayor of Cairo), when asked about race relations, said that overall
relations are decent, but "there's room for improvement." Childs acknowledged that housing in
town is mostly tenanted by African-Americans. Childs is related to Jeff Childs, who works as a
Maintenance Technician, as well as Eric Childs, a part-time Maintenance Technician.

5

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 7 of 19 Page ID #27

Allegations
Historical Context
The Cairo, Illinois region, including the ACHA, has a history of racial tension. 7 In fact, there is a
specific historical context to the two allegations at issue. Regarding the issue of residential racial
segregation in public housing, the ACHA historically operated its facilities on a segregated
basis. 8 At the time that a bulk of ACHA's family public housing was designed, in the 1940's, the
Federal Government actually mandated that public housing be segregated. 9 Eventually, that
policy was reversed, yet ACHA maintained its policy of segregating housing by race. 10
In 1974, the U.S. Department of Justice filed a lawsuit in an effort to address this residential
racial segregation. 11 Specifically, at the time, the two large family public housing sites within the
City of Cairo were segregated; Elmwood Place was mostly or entirely comprised of white
residents, and Pyramid Court was predominantly occupied by African-American residents. 12
Additionally, "Butler Homes," a building for the elderly, was also entirely African-American. 13

The lawsuit was eventually settled in 1974, where the ACHA agreed to no longer segregate
housing on the basis of race, and took affirmative steps to integrate. 14 The benchmarks agreed to
included prioritizing occupancy such that Pyramid Court was to have 71 white tenants (out of
15
237), and Elmwood Place was to have 39 black tenants (out of 159).
With respect to the issue of employment discrimination, a separate lawsuit was brought against
ACHA in 1969 by the Lawyers' Committee for Civil Rights Under Law (having recently opened
an office in Cairo). 16 The suit alleged employment discrimination by ACHA against its
employees, on the basis of race. 17 At the time that the suit was filed, only 3 out of 17 ACHA
18
employees were black. This lawsuit was also eventually settled in 1974 by an agreement
resulting in the hiring of an additional African-American employee, as well as allowing that
black employees would be considered in the future for management positions. 19

7

See Seng, Michael P., "The Cairo Experience: Civil Rights Litigation in a Racial Powder Keg." 61 Ore L Rev 285
(1982).
8
Id. at 19.
9
Id.
10
Id.
II Jd. at 20.
12
The buildings at issue in the lawsuit are still operating today; "Pyramid Court" has been renamed "McBride

Place."
13
Id. at 20.
14

Seng at 20.
is Id.
16
Id. at 16.
17
Id.
18
Id.
19 Id.

6

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 8 of 19 Page ID #28

Segregation of Public Housing on the Basis of Race
The HUD FHEO Review examined the allegation that ACHA segregates its public housing
residents on the basis of race, resulting in an adverse impact against African-American public
housing residents. The examination revealed that, in fact, many of the public housing buildings
are comprised almost entirely of African-American tenants, and that there is residential racial
segregation that affects certain ACHA sites.
The units in AMP 1, which are family units and within the City of Cairo, are occupied almost
entirely by African-American residents. Specifically, 239 out of the 247 total occupied units
between McBride Place and Elmwood Place have an African-American head of household.
Other ACHA public housing buildings are similarly segregated. For example, all 16 units
(studio, one-bedroom, and a single two-bedroom unit) at Butler Homes have an AfricanAmerican head of household.

Amp 1 (McBride
and Elmood)
Amp2
(Thebes I
Scattered-Sites)

Amp 3 (Connell
Smith and
Shuemaker)

Building

Units

% White

Designation

144

% AfricanAmerican
97.2%

McBride

2.8%

Family

Elmwood
Meadows

103
31

96.1%
48.3%

3.9%
51.7%

Family
Family

Butler
Johnson
Sunset
Greaney
Moreland
King
14m Street
1101 Ohio

16
17
9
8
7
2
2
55

100%
41.1%
22.2%
100%
100%
0%
100%
40%

0%
58.9%
77.8%
0%
0%
100%
0%
60%

Senior
Senior I Disabled
Family
Senior
Family
Senior I Disabled
Family
Senior I Disabled

1100
Halliday

41

70.7%

29.3%

Senior I Disabled

Chart2
Certain ACHA buildings are more racially integrated. Within the City of Cairo, the buildings
contained within AMP 3, Connell Smith and Shuemaker, are botb relatively balanced with
respect to their racial composition. Additionally, outside of Cairo in the town of Thebes,
Meadows and Sunset Terrace are both integrated, and reflect the prevailing racial demographics
of Alexander County. When asked why this was, Franklin explained that it has always been this
way, and therefore she has not changed any policies with respect to tenanting.

7

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 9 of 19 Page ID #29

With respect to the physical condition of the buildings, ACHA staff pointed out that Elmwood
and McBride are very old and have plumbing problems; Franklin added that "eventually you run
out of things you can do to dress it up." HUD PIH has reported that the ACHA acknowledged to
HUD officials that the properties are obsolete. Yet despite these concerns, during the month of
September 2013, ACHA devoted more maintenance resources towards fixing problems in AMP
3, the racially integrated senior I disabled buildings and so-called "high-rises" that are next door
20
to each other in Cairo, and which is also home to the ACHA administrative offices.
Elmwood and McBride also have issues with crime and security. Holman told FHEO staff that
the family buildings are places where people may be doing drugs and gambling. Specifically,
regarding McBride and Elmwood, Holman described gambling, shootings, and attempted rapes
in those two buildings. Holman stated that she and Franklin have been threatened while on site.
She added that "those tenants" often want vicious dogs for status and protection. Also regarding
crime, Franklin stated that there had been a "drug ring" at Elmwood and McBride in recent
years, but that it has been cleaned up.
Despite the reputation, security resources are actually centered away from Elmwood and
McBride. For example, security guards are stationed only at Shuemaker and Connell Smith, both
elderly buildings that are racially integrated.
Regarding electronic surveillance, there is a video camera in the Executive Director's office and
the main administrative office (both in Connell Smith), in the Shuemaker building, as well as in
the maintenance office. When asked how they chose those locations, Franklin explained that
while the Shuemaker and the Director's office camera are new, the others are replacements of
older cameras. Franklin added that this allows the elderly and disabled residents to feel more
secure. When asked why they don't have cameras installed anywhere else, Franklin said it is
because of lack of funds.
Franklin stated that she has met with the Mayor of Cairo, as well as representatives from state
and local police to discuss the issue of security at Elmwood and McBride. But Franklin
explained that it would have taken a lot of funding to get security at other properties because
they are so large. When asked, Franklin stated that she has not personally studied the issue of the
amount of crime between different buildings.
As far as crime concerns at the other buildings, Holman pointed out that in Thebes, IL, by
contrast, kids will do things like "egging" and throwing rocks, and ACHA will have to write
letters to parents. Franklin added that several years ago, someone climbed up the balcony and on
to the second floor at Connell Smith. Regardless, Franklin conceded that there is no more crime
at Connell Smith then there is at the other buildings.
Finally, other HUD officials have considered the security situation in ACHA's AMP 1. In its
draft "Results and Determinations," HUD PIH states that:
"The McBride and Elmwood developments have ongoing security issues. The review
team spoke with residents, elected officials, and local law enforcement. Personal property
20

See Chart 3, infra.

8

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 10 of 19 Page ID #30

theft and gunfire were expressed as ongoing concerns and issues. The Housing Authority
must improve lease enforcement and security. The Housing Authority has a security staff
at the Connell Smith Building. Recommendation is that security staff be reassigned or
rotated to McBride or wherever security issues exist."
With respect to the tenanting process, ACHA maintains three separate waiting lists, one for
family units, one for senior I disabled, and one for the AMP 2 units in Thebes. When asked why
a separate list is maintained for Thebes, Franklin explained that it is because the units are
approximately 30 miles away from Cairo, and a vehicle is therefore required, and not all tenants
have transportation.
ACHA does have a preference system for prospective tenants. HUD staff was told verbally that
preferences are given to county residents, the homeless, and veterans, although the preference
system is not explicitly defined in writing in the ACOP.
Employment Discrimination on the Basis of Race - Allegations and Background
Some housing authority employees allege that the ACHA discriminates against its AfricanAmerican employees. Specifically, it is alleged that African-American maintenance employees
are paid less money for doing more work, compared to comparable white employees. It has also
been alleged that black employees are disciplined more frequently and severely than comparable
white employees. Finally, it has been alleged that only white employees are considered for
promotions, and only white employees are in managerial and policy making positions.
By way of background, it is worth noting that there is only one African-American ACHA
employee who is not on the maintenance staff, India Johnson - Leasing and Occupancy Clerk.
Additionally, since 2013, four unique ACHA employees have filed EEOC I employment
discrimination complaints, three of whom are African-American and one of whom is white. This
is out of 10 total full-time employees, 21 and approximately 15 combined part-time and full time
n
employees.-Specifically, Joe Williams, formerly the Lease Enforcement Officer and Assistant Site Manager,
alleged that he was discriminated against on the basis of race and sex when he was passed over
for the Executive Director job, later given to Martha Franklin. Williams was eventually
terminated for "insubordination." This complaint resulted in a monetary settlement.
Another complaint was filed by former employee Ronald Davis (white), alleging that Joe
Williams (also a former employee), then his supervisor, used racially derogatory terms. That
complaint was also settled.
Yet another complaint was filed by Delbert Irish (black), a part-time Maintenance Technician,
alleging that he was harassed by other employees, and reprimanded for misconduct because of
21

This includes Joe Williams, one of the EEOC Complainants but who no longer is employed by ACHA.
Given that each one of these former or current ACHA employees has sought redress through a separate
administrative process, this FHEO review did not focus on the specifics of each allegation. Rather, this information
is provided for context.

22

9

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 11 of 19 Page ID #31

his race. He also alleges that he has not received the benefits of being a full-time employee,
despite the fact that a comparable white employee received these benefits.
Finally, Rodney Houston (black), a full-time Maintenance Technician, alleges that he receives
unequal pay compared to comparable white employees. 23
While not all of these complaints may be meritorious, taken together they certainly indicate a
pattern of racial tension among ACHA employees.
Another concern raised during the FHEO review is that ACHA does not comply with equal
opportunity hiring practices. The review showed that two full-time positions were filled within
the relevant scope of time, that of the Executive Director position, and that of a Leasing and
Occupancy Clerk.
Martha Franklin (white), who previously worked as (James) Wilson's assistant, was promoted to
fill the Executive Director position. The evidence shows that the position was never actually
made available to other employees or to the public, rather the former Executive Director, James
Wilson, promoted her. Franklin explained that she was Wilson's "right hand person;" she took
phone calls for him, typed up his letters, and made contacts for him. She further explained that
only Wilson (and not her) was in charge of policy decisions. Joe Williams, former employee and
someone who had acted in a management capacity at ACHA, was denied the promotion (and
eventually terminated).
The Leasing and Occupancy Clerk job was filled by India Johnson (black). As with the
Executive Director position, this position was apparently not made available to the public.
Johnson was originally hired to work part-time, and was then promoted to full-time. According
to Johnson, she was a public housing program participant and needed to visit the rental office. As
she had recently been laid off, she jokingly asked about a job as she heard that a staff member
was leaving. Donna Holman arranged for an interview with Franklin, and Johnson was hired.
The two recent hiring decisions present a limited sample size, and of course the two employees
are of different races. A general concern, however, is that the jobs are not posted to the public,
and there does not appear to be any transparency to the process. Even assuming the best
intentions, it is possible to draw a negative inference from this practice.
Employment Discrimination on the Basis of Race - Disciplinary Actions
Since Martha Franklin became the Executive Director, in early 2013, the ACHA has taken
adverse personnel action against several employees:
(1) Joe Williams (black) was terminated for insubordination. Franklin explained that

Williams refused to follow directions and would come into her office and yell at her.
Franklin is unaware of any other ACHA employees who have acted similarly.

23

Houston's EEOC complaint remained open at the time that these findings were published.

10

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 12 of 19 Page ID #32

(2) Delbert Irish (black) was suspended from work for one day for a traffic infraction
involving a school bus. Allegedly, Irish, while driving an ACHA vehicle, drove around a
bus while it had its stop-sign extended. Franklin is unaware of any other ACHA
employees who have been involved in similar traffic violations.
(3) James Renfrow (white), full-time Maintenance Technician, was suspended for a day
without pay after Franklin received word that he had slammed his fist into a refrigerator
in the maintenance facility.
(4) Anthony Copeland (white), part-time Maintenance Technician, apparently became
belligerent with Franklin in an expression of his disappointment after receiving a $25 gift
card for his Christmas bonus. He quickly apologized and was allowed to come back to
work.
(5) There was an incident in 2013 where a disciplinary action was recorded. The notation
states that: "On Tuesday, January 7'h, 2013 between 8:23 AM and 8:33 AM the following
people were in the office of the Connell Smith Bldg - Those present were: India Johnson,
Rodney Houston, Jeff Childs, Eric Childs and Joe Williams. Discussion of working hours
and call back employees thru capital fund [space] creating hostility in the work place
[space] threatening language." All of the aforementioned employees are AfricanAmerican.
(6) Rodney Houston (black), in July 2014 for "Harassment - Discourteous Language Creating Hostility." Attached to the notice is a narrative written by India Johnson,
describing a heated conversation about whether or not they spoke with HUD officials on
their on-site review.
The FHEO review of these disciplinary actions did not reveal any clear pattern of discrimination
on the part of ACHA management against its African-American employees.
Employment Discrimination on the Basis of Race - Pay and Workload Disparity
Another area of focus for the FHEO review was alleged disparities in pay and workload among
ACHA maintenance staff.

Name

race

years

Rate I
hour

title

E. Childs

AA

3

p/t maintenance

J. Childs

AA

4

maintenance tech 1

A Cooeland
R.
Fitzgerald

white

10

white

8

maintenance tech 1

R. Greenley

white

0

retired I contract

R. Houston

AA

J. Renfrow
B. Tatum

Total
Hrs
Paid

net oav

Al

$12

115

$1380.00

$17.75

191

$3390.25

946

$15

128

$1920.00

130

o/t maintenance

A2

A3
1560

Total
Hours
Worked
26
15.77

2345

$19.74

0

$0.00

$20.6

32

$659.20

90

180

540

41.25

30

5
5

28

maintenance tech 1

$17.75

144

$2556.00

2280

170

15

41.08

white

4

maintenance tech I

$17.75

106

$1881.50

90

855

60

16.75

white

0

retired I contract

$20.37

32

$651.84

0

Chart3
11

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 13 of 19 Page ID #33

In the course of its review, FHEO studied two sources of information: The actual maintenance
work orders for all ACHA units during the month of September 2013, as well as what each of
those employees was paid during that same time. 24

On an hourly basis, the top three highest paid maintenance employees are white. Billy Tatum and
Ronald Greenley are retired and work part-time on a contract basis, and Robert Fitzgerald is fulltime.
Regarding the retired, part-time maintenance technicians, the two white retirees receive the
highest hourly salary, at $20.37 per hour. They have contracts with ACHA to perform their
work. There is also a third retired part-time maintenance technician, Henry Wade, who is
African-American, yet does not have a contract to perform work with ACHA. He is only paid at
a rate of $15.93 per hour, much less than the comparable white retired part-time employees.
In September 2013, there were four full-time maintenance employees, three of whom were able
to work the entire month. 25 In order of seniority, Rodney Houston, African-American, has 28
years of experience and is paid a $17.75 per hour. After that, Robert Fitzgerald, white, has 8
years of experience and is paid $19.74 per hour. Finally, James Renfrow, white, has 4 years of
experience and is paid $17.75 per hour; Eric Childs, who is African-American, also has 4 years
of experience and is paid the same as Renfrow. 26

Upon further analysis, according to work-orders and paystubs, Houston worked substantially
more "billable hours" than Renfrow. At the same time, Houston has an extra 24 years of
experience compared to Renfrow, yet gets paid the same rate. Finally, Houston has an extra 20
years of experience compared to Fitzgerald, yet gets paid less than he does.
There may also be a disparity with respect to the part-time maintenance technicians. Anthony
Copeland, who is white, earns $15 per hour, compared to Eric Childs, who earns $12 per hour.
On the other hand, Copeland has 10 years of experience, whereas Childs has only 3 years.
Another consideration are the particular units that the maintenance technicians are assigned. As
previously discussed, AMP 1 refers to McBride and Elmwood, which are the oldest buildings,
and have the reputation for being crime-ridden. Most of the maintenance requests for AMP 1
were fulfilled by African-American employees, by Rodney Houston and Jeff Childs. On the
other hand, AMP 2 (scattered-sites) and AMP 3 (senior I disabled buildings) are more racially
integrated and do not have the same reputation with respect to crime, yet the majority of
maintenance work performed in those buildings is by white maintenance technicians.
Furthermore, in an interview with FHEO staff, Fitzgerald explained that there is a "big
difference" with regard to the maintenance needs between AMP 1 and AMP 3. He stated that
24

Robert Fitzgerald, the highest paid full-time Maintenance Technician, became injured while working in
September 2013 and has been out of work up through the date that this Letter was published.
25
ACHA did not provide FHEO with any information to distinguish any one maintenance technician's background,
skill set or training, beyond what is apparent here.
26
As previously mentioned, Renfrow is related to the Executive Director, and Childs to one of the Commissioners.

12

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 14 of 19 Page ID #34

AMP 3 houses elderly tenants who "don't do much damage to their units," whereas AMP 1 has
"younger families with kids," and there is a constant need for repairs.
When asked why the system for assignments and pay is the way that it is, Franklin stated that the
system pre-dated her tenure as Executive Director, and she saw no need to change it. When
asked if anyone had complained about the system, or asked for a raise, Franklin mentioned that
Rodney Houston had asked for a raise, but she refused it.
Fitzgerald added that he too has asked for a raise every year, and that sometimes it is approved
and sometimes it is denied. Most recently, in late 2012, he asked Franklin for a raise and was
denied due to lack of funds. When asked if he knew of any other ACHA maintenance technicians
who had requested a raise, Fitzgerald replied that: "I'm pretty sure Rodney Houston asked for a
raise, and he deserved it because he carried the load for AMP l."
To summarize, there is a disparity with respect to the rate of pay among ACHA maintenance
technicians, on the basis of race. The African-American employees are paid less, however, they
are more likely to be assigned to AMP 1, the buildings that are in poorer physical condition and
more prone to crime, compared to similarly situated white employees. At the same time, ACHA
assigns more maintenance staff resources to AMP 3, buildings that are newer, closer together,
and happen to be more racially integrated.

Analysis
Title VI of the Civil Rights Act of 196427 and its implementing regulations at 24 C.F.R. Part 1
prohibit discrimination in federally funded programs on the basis of race, color or national
origin. The implementing regulations, specifically 24 C.F.R. § l.4(b )(2)(i), state that a recipient
of federal financial assistance, in determining the types of housing which will be provided under
a program or activity, may not utilize criteria or methods of administration which have the effect
of subjecting persons to discrimination because of their race. In addition, 24 C.F.R. §l.4(b)(l)(i)
makes it illegal for a recipient to deny a person any housing or other benefits provided under the
a program or activity on the grounds of race. Furthermore, 24 C.F.R. §1.4(b)(l)(vi) makes it
illegal for a recipient to deny a person the opportunity to participate in the program or activity
through the provision of services or otherwise, or afford him an opportunity to do so which is
different from that afforded others under the program or activity, including the opportunity to
participate in the program or activity as an employee. Finally, 24 C.F.R. §l.4(b)(6)(i) requires a
recipient, given a previous finding of discrimination, to take affirmative action to overcome that
prior discrimination. The ACHA, as a public housing authority, is a recipient of federal financial
assistance. 28
As previously stated, there exists residential segregation among ACHA' s family public housing
units. There are 247 occupied units in AMP 1, McBride and Elmwood, and of those units, 239,
or 96.8%, are occupied by African-American heads of household. This is striking considering
that the City of Cairo is 69.5% African-American, and that the entirety of Alexander County,
which corresponds with the ACHA service area, is only 34.8% African-American. Also
-'7 42 U.S.C. §2000(d) et seq.
28
See 24 C.F.R. § 1.2(1).

13

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 15 of 19 Page ID #35

important is the disparity between AMP 1 compared to AMP 2 and AMP 3, many of the units of
which are "designated" as senior and disabled. In AMP 2 and AMP 3, 108 out of 188 total units,
or 57.4%, are occupied by African-American heads of household, a percentage that is more in
line with the surrounding demographics.
Additionally, the segregated AMP 1 facilities are much older, and considered to be more poorly
maintained than the ACHA's other properties, although it appears as though ACHA devotes
fewer maintenance resources to its upkeep. Furthermore, the AMP 1 buildings have a reputation,
shared among ACHA and HUD PIH staff, for having more crime and being less secure, despite
the fact that ACHA has not committed any of its security resources to AMP 1. As a result, it is
clear that ACHA's actions and policies have adversely and disproportionately impacted AfricanAmerican families and residents of ACHA public housing while having the effect of residential
segregation.
On the subject of labor, the FHEO review revealed that the ACHA has a documented history of
discriminating against African-American employees. Furthermore, it is relevant that a number of
EEOC complaints have recently been filed alleging racial discrimination, and that none of the
supervisory employees are African-American. The ACHA had an opportunity to affect diversity
when the position of Executive Director became available, yet it chose to promote the former
Executive Director's assistant, Martha Franklin, over an African-American manager, Joe
Williarns. 29 Not to mention, the ACHA failed to open the hiring process up to external
candidates. Beyond that, only one non-maintenance employee at ACHA is African-American.
Specifically with respect to the maintenance technicians, the highest paid (on an hourly basis)
maintenance technicians at ACHA are white, yet that does not appear to track with seniority. The
technicians who are assigned to the oldest buildings in the poorest physical condition and
without any security personnel or surveillance equipment are African-American, whereas much
of the work being done in the newer facilities is performed by white technicians. Finally, the
part-time white retirees have a contract and are paid at a higher hourly rate than the part-time
retired African-American employee.
Based on this evidence, it is clear that ACHA's actions and policies, with respect to the
assignments and pay rate of its maintenance technicians, have adversely impacted AfricanAmerican maintenance employees, compared to comparable white employees. Furthermore,
failing to provide opportunities for African-Americans to work in management and policy
making capacities have contributed to a failure to examine or disturb the status quo with respect
to tenanting policies, which has the effect of maintaining and even furthering racial segregation
in family public housing, and adversely affecting program participants.
Defenses
It is next necessary to consider whether ACHA's actions regarding residential segregation and
employment, when viewed in its entirety, serve a legitimate public purpose sufficient to justify
the resulting disparate impact on the African-American households and employees.

29

This review did not assess Williams' specific qualifications for the position.

14

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 16 of 19 Page ID #36

ACHA staff point to the fact that they have three separate waiting lists separated by AMP: One
for people who wish to reside in family public housing, one for "Thebes," which is
approximately 25 miles outside of town, and one for "seniors I disabled." When asked, ACHA
staff explained that the separate lists serve a purpose given that people who live in Thebes,
Illinois' need a car, and not every applicant has one. As a result, it is possible that applicants can
"self-select." Another issue is that many of its units are restricted to those over the age of 50, and
without children under the age of 18, yet none of those units have been "designated" as senior
with HUD. Franklin added that basically, the waiting lists have been maintained the same way
for as long as she has been at ACHA.
With respect to managing the crime and security situation, the defenses take a similar tone.
Franklin points out that despite the reputation for a propensity of violent crime in Elmwood and
McBride, Franklin has not actually studied the issue, and didn't feel compelled to prioritize
security and surveillance resources at those properties. She also stated that there is a lack of
funding to expand security resources, and the security stationed at the elderly and disabled
buildings helps the residents there "feel more secure." Yet HUD PIH was able to interview local
elected and law enforcement officials, as well as residents, who believe that the threat of violent
crime is real. And even ACHA staff, in interviews with FHEO, described a much more serious
category of crime, such as rape, murder and drug dealing, in the context of the AMP 1 properties
compared to others.
Furthermore, ACHA has admitted that the McBride and Elmwood facilities are obsolete. ACHA
maintenance technician Fitzgerald explained it succinctly: AMP 1 has mostly families with
children, and there is a constant need of repairs, whereas AMP 3 is mostly elderly tenants who
are less likely to cause wear and tear to their units. Franklin pointed out that "eventually you run
out of things you can do to dress it up." Yet despite the relatively nicer physical condition, the
FHEO review showed that ACHA devoted more maintenance resources to a smaller number of
units in AMP 3, at least during the month of September 2013.
While ACHA has basically pied ignorance and a preference for the status quo, none of these
defenses qualify as a legitimate public purpose, or justification for policies and practices that
have a disparate impact on African-American households. This is especially true in context, in
light of the fact that there is no obvious reason, aside from bedroom size, to "designate" certain
units as set-aside for people over 50 without children under 18, and "disabled," rather than allow
families, many of whom are African-American, to live there.
The defense with respect to the hiring practices and maintenance technician assignments and pay
is similar: Franklin pointed out that the assignment system predated her involvement as
Executive Director, and she felt no need to change it, notwithstanding the fact that an AfricanAmerican employee, Rodney Houston, asked for a raise and was denied, whereas a white
employee, Robert Fitzgerald, has previously been given a raise. And it's true that Franklin, in her
term as Executive Director, has not been in a position to make a hiring decision for any
managerial or policy-making vacancies.
Nonetheless, this defense does not qualify as a legitimate public purpose, insofar that the policies
and practices have the effect of maintaining a status quo. That inertia then has the effect of
15

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 17 of 19 Page ID #37

imposing segregation in housing on program participants, and has the effect of creating a
disparity in workload and pay among maintenance technicians.
Based on the foregoing analysis, the residential segregation apparent in ACHA's family public
housing in AMP 1 perpetuated segregation, with in adverse impact against African-American
public housing residents, in violation of24 C.F.R. §1.4(b)(l)(iii) and 24 C.F.R. §l.4(b)(2)(i).
Furthermore, the employment discrimination described above, insofar as it subjects program
participants to discrimination on the basis of race, supports the finding that 24 C.F.R. § l.4(b )(vi)
has been violated.
Intentional Discrimination and Affirmative Action to Overcome Prior Discrimination
The Title VI implementing regulation found at 24 C.F.R. § l.4(b)(l)(i) prohibits a recipient of
federal financial assistance from directly, or through contractual or other arrangements, denying
a person any housing on the grounds of race. The Title VI Legal Manual 30 recognizes that federal
agencies may enforce regulations promulgated under Title VI using a theory of intentional
discrimination. 31 Here, the agency must show that "'a challenged action was motivated by an
intent to discriminate.' This requires a showing that the decisionmaker was not only aware of the
complainant's race ... but that the recipient acted, at least in part, because of the complainant's
race ... " 32 A successful intentional discrimination claim does not require "evidence of 'bad faith,
ill will or any evil motive on the part of the recipient."' 33 Furthermore, "[e]vidence of
discriminatory intent may be direct or circumstantial and may be found in various sources,
including statements by decisionmakers, the historical background of the events in issue, the
sequence of events leading to the decision in issue, a departure from standard procedure (e.g.
failure to consider factors normally considered), legislative or administrative history (e.g.
minutes of meetings) ... and evidence of a substantial disparate impact on a protected group." 34
In addition, evidence that a decisionmaker is aware that a discriminatory effect is likely to result
from a practice or decision may also support a claim of intentional discrimination. 35
In this case, there is evidence that ACHA engaged in intentional discrimination on the basis of
race, in violation of Title VI and HUD's regulations promulgated under Title VI, insofar as it has
created segregated housing conditions, and an environment of unequal employment on the basis
of race.
Here, this claim of intentional discrimination is based almost entire! y on the historical context of
civil rights concerns with the ACHA. As previously discussed, there is a documented history of
litigation and consent decrees with respect to both of these Title VI allegations.

30

Retrieved at http://\VW\V.justice.gov/crt/aboutlcor/coord/vimanual.pdf.
Id at 43.
32
Id at 43, citing Elston v. Talladega County Bd. Of Educ., 997 F.2d 1394, 1406 (11th Cir. 1993).
33
Id at 43, citing Elston at 1406.
34
Id at 44, citing Elston at 1406.
35
See Personnel Adm'r of Massachusetts v. Feeney, 442 U.S. 256, 279 n.25 (1979) ("When the adverse

31

consequences of a law upon an identifiable group are as inevitable as the gender-based consequences of [the statute],
a strong inference that the adverse effects were desired can reasonably be drawn").

16

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 18 of 19 Page ID #38

In the context of residential segregation, in the 1970's the ACHA had agreed to integrate Butler
Homes and the Pyramid Courts (now known as McBride Place). Yet now, approximately 40
years later, these buildings remain essentially just as segregated as ever. Furthermore, it appears
that ACHA staff is aware of the security and maintenance challenges of McBride and Elmwood,
yet has failed to redeploy resources to address those concerns. As a result, ACHA was aware of
the racial segregation, as well as the adverse impact that this segregation could have on the AMP
1 tenants, yet failed to take steps to remedy the situation.
The same is true on the topic of employment discrimination, where the ACHA had previously
agreed to open its hiring process up to African-American employees. And again, 40 years later,
the hiring process remains closed, and no African-American employees are in management or
policy-making positions. What is especially pernicious about this practice is that failing to open
the door to diversity in management similarly fails to create incentive for management to
challenge the status quo and the policies that have and still contribute to residential segregation
on the basis of race. And it is the ACHA residents, particularly the African-American families
who live in AMP 1, who suffer.
Along the same lines, the series of EEOC complaints that have been filed in the last year or two
do not seem to have prompted the ACHA to reexamine any of its hiring or management
practices. As a result, while there is good reason to believe that ACHA had knowledge of both
historical and recent adverse employment practices, it failed to address that status quo.
This evidence taken together supports a finding of intentional discrimination. While there is no
evidence that Executive Director Franklin or any of the Commissioners acted with any evil
motive or bad faith, in light of the historical context, and the likelihood that the decision makers
were aware of this context, there is evidence that ACHA engaged in intentional discrimination in
violation of Title VI and its implementing regulation found at 24 C.F.R. § l.4(b)(l)(i).
Furthermore, the Title VI implementing regulations require ACHA to take affirmative action to
overcome the effects of prior discrimination. Given that the segregation in its public housing has
returned to levels similar to or worse than that during the litigation that occurred approximately
40 years ago, it is clear that ACHA is no longer taking adequate steps to overcome the effects of
prior discrimination. This supports a finding that ACHA has violated 24 C.F.R. § l.4(b )(6)(i).

Conclusion
The Department finds the Recipient in violation of Title VI. This letter addresses only the issues
discussed herein and should not be interpreted as a determination of the Alexander County
Housing Authority's compliance or noncompliance with Section 504, Section 3, or in any other
respect.
HUD' s regulations discuss the issuance of a Letter of Findings ("LOF") under Title VI at 24
C.F.R. §1.7. Under Title VI it is HUD's policy to resolve all matters by informal means
whenever possible. Informal resolution is usually achieved through the execution of a Voluntary

17

 Case 3:16-cv-00513-MJR-RJD Document 1-1 Filed 05/10/16 Page 19 of 19 Page ID #39

Compliance Agreement ("VCA") between HUD and the recipient. We invite the Alexander
County Housing Authority to enter into a VCA.
HUD prefers to achieve an informal voluntary resolution to this matter through a written VCA.
See 24 C.F.R. § l.7(d). If the noncompliance cannot be corrected by informal means, compliance
may be effected by the suspension or termination of or refusal to grant or to continue Federal
financial assistance, or by any other means authorized by law. See 24 C.F.R. § l.8(a).
Within the next 30 days, someone on my staff will be in contact with suggestions for the terms of
a VCA. You may also contact me directly at (312) 913-8400.
Sincerely,

b\k-o~~
FHEO Region V Director
Office of Fair Housing and
Equal Opportunity

cc:

Martha Franklin
Executive Director, Alexander County Housing Authority
Antonio Riley
Regional Administrator, Region V
James Cunningham
Deputy Regional Administrator, Region V
William E. Wilkins
Director, Chicago Office of Public Housing
Harold McNally
Chairman, Alexander County Board of Commissioners
Illinois Department of Human Rights
Director, Marion Office

18