HUD Rule Intended to End Segregation

The Obama administration is moving forward with regulations designed to help diversify America’s wealthier neighborhoods, drawing fire from critics who decry the proposal as executive overreach. A final Department of Housing and Urban Development (HUD) rule due out this month is aimed at ending decades of deep-rooted segregation around the country.

The regulations would use grant money as an incentive for communities to build affordable housing in more affluent areas while also taking steps to upgrade poorer areas with better schools, parks, libraries, grocery stores and transportation routes as part of a gentrification of those communities.

“American citizens and communities should be free to choose where they would like to live and not be subject to federal neighborhood engineering at the behest of an overreaching federal government,” said one representative who is leading an effort in the House to block the regulations. Civil rights advocates, meanwhile, are praising the plan, arguing that it is needed to break through decades-old barriers that keep poor and minority families trapped in hardscrabble neighborhoods.

HUD says it is obligated to take the action under the Fair Housing Act of 1968, which prohibited direct and intentional housing discrimination, such as a Realtor not showing a home in a wealthy neighborhood to a black family or a bank not providing a loan based on someone’s race.

To qualify for certain funds under the regulations, cities would be required to examine patterns of segregation in neighborhoods and develop plans to address it. Those that don’t could see the funds they use to improve blighted neighborhoods disappear, critics of the rule say.

Republicans are trying to block the Affirmatively Furthering Fair Housing rule. Before passing HUD’s funding bill this week, the GOP-led House approved an amendment prohibiting the agency from following through with the rule.

Critics of the rule say it would allow HUD to assert authority over local zoning laws. The agency could dictate what types of homes are built where and who can live in those homes. If enacted, the rule could depress property values as cheaper homes crop up in wealthy neighborhoods and raise taxes, said one critic.

The Supreme Court is expected to weigh in on housing discrimination in a related case in the coming weeks. At issue is whether government policies that unintentionally create a disparate impact for minority communities violate federal laws against segregation.

The Texas Department of Housing and Community Affairs is facing accusations that it makes low-income housing funds more readily available in minority neighborhoods than in white neighborhoods. This promotes segregation, critics argue, by encouraging minorities to continue living in poor communities where government assistance is available. Court observers say the case could have a profound impact on HUD’s rule.

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