For fiscal years 1989 through 1997, the Congress appropriated $113 million for FHIP. 1). The initiatives are (1) the private enforcement initiative—funding for private nonprofit organizations to undertake testing and other enforcement-related activities; (2) the fair housing organizations initiative—funding for private nonprofit organizations to create new fair housing enforcement organizations in those areas of the country that were unserved or underserved by such organizations or expand the capacity of existing private nonprofit fair housing organizations; (3) the education and outreach initiative—funding for private and public entities to educate the general public and housing industry groups about fair housing rights and responsibilities; and (4) the administrative enforcement initiative—funding for state and local government agencies that administer fair housing laws certified by HUD as substantially equivalent to federal law to help such agencies broaden their range of enforcement and compliance activities. 2). Reflecting the program’s principal focus, HUD’s budget requests to the Congress set forth how it plans to divide the total amount of dollars requested for FHIP among the four initiatives. HUD’s Allocation of FHIP Funds

According to the Acting FHIP Division Director, the Assistant Secretary for Fair Housing and Equal Opportunity determines how funds are allocated on the basis of legislation, administration and agency priorities, and input from the housing industry and fair housing groups. In accordance with its budget plans, HUD has made the largest portion of FHIP dollars available for the private enforcement initiative. For the 3 most recent years (fiscal years 1994 through 1996), the greatest demand, as measured by the amounts requested on applications, has been for the private enforcement initiative. FHIP Grant Recipients and Activities Are Diverse

From the program’s inception through September 1996, a total of 220 different organizations received FHIP grants in 44 states and the District of Columbia; 26 organizations received about half of all FHIP funds awarded. In addition, private enforcement initiative grants funded special projects that focus on high-priority issues such as mortgage lending discrimination and insurance redlining. Data on Funding for the Fair Housing Initiatives Program and the Demand for Funds

The following four tables provide details on the Department of Housing and Urban Development’s (HUD) allocation of funds among the Fair Housing Initiatives Program’s (FHIP) four funding initiatives or categories, the dollar amounts made available under each category, and the level of demand for funds under each category.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Housing and Urban Development's Fair Housing Initiatives Program, focusing on: (1) how funds are allocated among the program's four initiatives or funding categories, what dollar amounts are made available under each category, and what level of demand exists for funds under each category; and (2) who receives program funds and how the funds are being used.

What GAO Found

GAO noted that: (1) from the program's inception through fiscal year (FY) 1997, the Congress has appropriated $113 million to carry out the Fair Housing Initiatives Program; (2) the Assistant Secretary for Fair Housing and Equal Opportunity, the Department of Housing and Urban Development, judgmentally determines how funds are allocated among the four initiatives on the basis of the program legislation, the administration's and the agency's priorities, and input from the housing industry and fair housing groups; (3) the agency's budget requests to the Congress set forth how it plans to divide the total program dollars among the four initiatives; (4) the largest portion, more than $40 million, has been budgeted and made available for the private enforcement initiative; (5) as measured by the amounts requested on applications, for the 3 most recent years, fiscal years 1994 through 1996, there is also great demand for the private enforcement initiative; (6) through FY 1996, 220 different organizations in 44 states and the District of Columbia received program grants; (7) of all the funds awarded, 26 organizations received about half; (8) the largest portion of funds, about $41 million, was spent on the private enforcement initiative for activities aimed at determining the existence of discrimination in renting, sales, and lending, primarily testing to investigate individual complaints and testing to investigate industry practices; (9) grantees have used funds for a variety of other fair housing activities, such as litigation, new fair housing organizations and capacity building for existing organizations, pamphlets and brochures, print, television, and radio advertisements, and conferences and seminars for housing industry professionals; and (10) other funded activities also have included special projects on mortgage lending and insurance redlining.