grantee may not (directly or through contractual or other arrangements):

(1) Subject an individual to discrimination on the basis of sex in its employment practices in connection with the program; and

(2) In connection with any positions funded in whole or in part with funds made available under the Act, subject an individual to discrimination on the basis of race, creed, color, national origin, sex, political affiliation or beliefs.

(d) The requirements applicable to construction employment under any such program shall be those specified in or pursuant to Part III of Executive Order 11246 or any Executive Order which supersedes it.

(e) Enforcement of Title VI, section 624 of the Economic Opportunity Act of 1964, as amended, and this part with respect to covered employment practices shall not be superseded by state and local merit systems relating to the same grantee.

Subpart C-Responsibilities of Grantee

§ 1010.20-1 Assurances.

(a) Economic Opportunity Assurance. Every application for financial assistance for a program under the Economic Opportunity Act of 1964, as amended, as well as every grant, contract, or agreement with respect to such program shall specifically provide:

(1) That no person with responsibilities in the operation of such programs will discriminate with respect to any such program on the basis of race, creed, color, national origin, sex, political affiliation or beliefs; and

(2) That compliance with such provision shall be determined by this part.

(b) General. Every application for Federal financial assistance to a program to which this subpart applies shall, as a condition to the extension of any Federal assistance, contain or be accompanied by an assurance that the program will be conducted in compliance with all requirements imposed by this part. In the case where Federal financial assistance is to provide or is in the form of personal property, or real property or interest therein or structures thereon, the assurance shall obligate the grantee, or, in the case of a

subsequent transfer, the transferee, for the period during which the property is used for a purpose involving the provision of similar services and benefits, or for as long as the grantee retains ownership or possession of the property, whichever is longer. The Associate Director for Human Rights or his/her designee shall specify the form of the foregoing assurances for each program, and the extent to which like assurances will be required of subgrantees, contractors, and subcontractors, transferees, successors in interest, and other participants in the program. Any such assurance shall include provisions which give the United States a right to seek its judicial enforcement.

(c) Real property. In the case of real property, structures or improvements thereon, or interest therein, which were acquired with Federal financial assistance, or in the case where Federal financial assistance is provided in the form of a transfer of real property or interest therein from the Federal government, the instrument effecting or recording the transfer shall contain a covenant running with the land assuring nondiscrimination for the period during which the real property is used for a purpose for which the Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits, or for as long as the grantee retains ownership or possession of the property, whichever is longer. Where no transfer of property is involved, but property is acquired or improved with Federal financial assistance, the grantee shall agree to include a covenant assuring nondiscrimination in any subsequent transfer of such property. Where the property is obtained from the Federal government, such covenant may also include a condition coupled with a right to be reserved by CSA to have title to the property revert to the Federal government in the event of the breach of the covenant where at the discretion of the Associate Director for Human Rights or his/her designee such a condition and right of reverter are appropriate to the program under which the real property is obtained and to the nature of the grant and the grantee. In such event if a transferee of real property proposes to mortgage or

otherwise encumber the real property as security for financing construction of new, or improvement of existing facilities on such property for the purposes for which the property was transferred, the Associate Director for Human Rights or his/her designee may agree, upon written request of the transferee to accomplish such financing, and upon such conditions as he/she deems appropriate, to forebear the exercise of such right to have title revert to CSA for so long as the lien of such mortgage or other encumbrance remains effective.

(d) Elementary and Secondary Schools. In the case of any program for the benefit of elementary or secondary school students which, as a necessary part of such program, utilizes to a substantial extent the facilities of an elementary or secondary school or school system, the requirements of §1010.20-1 shall be deemed to be satisfied if such school or school system:

(1) Is subject to a final order of a court of the United States for the desegregation of such school or school system, and provides an assurance that it will comply with such order, including any future modification of such order; or

(2) Submits a plan for the desegration of such school or school system which the Department of Health, Education and Welfare determines is adequate to accomplish the purposes of Title VI and this part within the earliest practicable time, and provides assurances that it will carry out such plan. In any case in which a final order of a court of the United States for the desegregation of such school or school system is entered after submission of such a plan, such plan shall be revised to conform with such final order, including any future modification of such order.

The provisions of this paragraph do not apply to programs for pre-school children.

(e) Institutions of Higher Education. In the case of any application for Federal financial assistance to an institution of higher education, the assurance required by this paragraph shall extend to admission practices and to all other practices relating to the treatment of students. The assurance required with respect to an institution of higher edu

cation, hospital, or any other institution, insofar as the assurance relates to the institution's practices with respect to admission or other treatment of individuals as students, patients, or clients of the institution or to the opportunity to participate in the provision of services or other benefits to such individuals, shall be applicable to the entire institution unless the institution establishes, to the satisfaction of the Associate Director for Human Rights or his/her designee that the institution's practices in designated parts or programs of the institution in no way affect the beneficiaries of or participants in the programs for which Federal financial assistance is sought. If in any such case, the assistance sought is for the construction of a facility or part of a facility, the assurance shall in any event extend to the entire facility and to facilities operated in connection therewith.

(a) To be eligible for funding, each CSA grantee shall have an affirmative action plan approved by the Associate Director for Human Rights or his/her designee which shall include the following:

(1) A written Equal Opportunity Policy;

(2) An Equal Opportunity Committee; (3) An Equal Opportunity Officer; (4) A written discrimination complaint procedure at a minimum incorporating the procedures in Subpart D, § 1010.30-3.

(5) A data-collection, record-keeping and reporting system to provide the information required by this part.

(6) A comprehensive self-analysis, which shall include a comparison of the provision of benefits on the basis of race, sex, and national origin as to the eligible racial, sexual, and national origin population.

This analysis shall also include a comparison of the grantee's employment by race, sex and national origin to the racial, sexual, and national origin characteristics of the relevant workforce. Where significant disparities are found, the recipient shall determine the reasons and, if appropriate, set forth corrective actions.

(b) The recipient of CSA financial assistance is required to implement its CSA-approved affirmative action plan and to ensure compliance with this part. At a minimum, the following requirements must be met:

(1) Each grantee board shall formally adopt an Equal Opportunity Policy and establish an Equal Opportunity Committee which shall reflect the composition of the board in regard to representation of the public, private and low-income sectors.

(2) The Equal Opportunity Committee shall review the determinations of the Equal Opportunity Officer (EOO) regarding complaints of discrimination and shall oversee the enforcement of the grantee's civil rights program.

(3) Grantees shall have at least one EOO, who shall report directly to the Board of Directors on EO matters, with responsibility for the civil rights program required by this part and such additional personnel as are necessary to carry out the requirements of this part. The EOO shall not be the Executive Director, Deputy Director or Personnel Officer. The Regional Human Rights Chief will make the determination whether the EOO will be full-time or part-time.

(4) The EOO shall undergo training as prescribed by CSA. All expenses incurred by such training shall be borne by the grantee.

(5) The EOO shall be granted the authority to carry out the following activities:

(i) Receive and attempt to resolve complaints of discrimination;

(ii) Provide aggrieved persons with information and advice on equal opportunity procedures including local, state, and Federal redress procedures, and notification of the filing deadlines for Equal Employment Opportunity Commission complaints, where applicable;

(iii) Take other steps which may assist in the resolution of a problem, prior to the filing of a formal complaint;

(iv) Assist, if requested by a complainant, in preparing a formal complaint to CSA of alleged discrimination based on race, color, creed, sex, national origin, age, handicap, political affiliation or beliefs; and

(v) Provide staff leadership in developing, implementing, and evaluating the grantee's Affirmative Action Plan (AAP).

(6) Grantees shall display, in conspicuous places, posters which summarize the rights of the employees, program participants and beneficiaries under Title VI, section 624 of the Economic Opportunity Act of 1964, as amended, and this part. Such posters shall describe the functions of the EOO and the procedures for filing complaints of discrimination, including the right to complain directly to CSA.

(7) In addition to the posters, each grantee shall make available information regarding the provisions of this part and its applicability to the program under which the grantee receives Federal financial assistance and make such information available in such manner as the Associate Director for Human Rights or his/her designee finds necessary to apprise such persons of the protections against discrimination assured them by Title VI, the Economic Opportunity Act, and this part.

(8) Grantee shall make its posters and other material available in a language other than English where a significant number or proportion of the population eligible to be served or likely to be directly affected a by Federally assisted program need services in another language. The Associate Director for Human Rights or his/her designee will determine when publication in a language other than English is necessary.

§ 1010.20-3 Data and information requirements.

(a) Each grantee shall collect, maintain, and, upon request of CSA, submit the information set forth in this section. All of the information set forth shall be collected unless the Associate Director for Human Rights or his/her designee grants a written exemption to any information requirement for good cause shown by the grantee.

(b) To the extent that CSA has supplied or prescribed forms for the following information such forms shall be utilized by the grantee.

(c) Grantees shall collect and maintain the following information:

(1) The manner in which services are or will be provided by the program in question, and related data necessary for determining whether any persons are or will be denied such services on the basis of race, color, sex or national origin.

(2) The population eligible to be served by race, color, sex or national origin.

(3) The location of existing or proposed facilities connected with the program and related information adequate for determining whether the location has or will have the effect of unnecessarily denying services to any persons on the basis of race, color, sex or national origin.

(4) The present or proposed membership by race, color, sex and national origin in any policy making or advisory body which is an integral part of the program.

(5) Where relocation is involved, the requirements and steps used or proposed to guard against unnecessary adverse impact on persons on the basis of race, color, sex or national origin.

(6) Data regarding covered employment, including use or planned use of bilingual public contact employees serving the beneficiaries of the program where necessary to permit effective participation by beneficiaries unable to speak or understand English.

(7) A brief description of any of its pending applications to other Federal agencies for assistance and of assistance being provided at the time of the application or requested report.

(8) A statement describing any civil rights compliance reviews regarding the applicant or grantee conducted during the two-year period before the applicant or report, and the results of those reviews.

(d) In addition to the data and information required in §1010.20–3(c)(1)–(8), each applicant or grantee shall:

(1) Promptly notify CSA of any lawsuits filed against the applicant or grantee alleging discrimination on the basis of race, color, sex or national origin,

(2) Maintain a log of complaints under Title VI and this part identifying each complainant by race, color, sex or national origin, the nature of the complaint, the date the complaint was

filed, the date the grantee's investigation was completed and the disposition and the date of disposition; and

(3) Where CSA determines that it is necessary and appropriate for the enforcement of Title VI or this part, additional data such as demographic maps, the racial or sexual composition of affected neighborhoods, or census data will be required, however, only to the extent that the information is readily available or the requirement can be complied with by reasonable effort.

(e) Access to Sources of Information. Each grantee shall permit access by the responsible CSA official or his/her designee during normal business hours to its books, records, accounts, and other sources of information, and its facilities as may be pertinent to ascertain compliance with this part. Where any information required of a grantee is in the exclusive possession of any other agency, institution or person and that agency, institution or person fails or refuses to furnish this information, the grantee shall set forth in writing the efforts it has made to obtain the information and provide this information to the CSA official requesting such information.

Subpart D-Conduct of
Investigations and Reviews

§ 1010.30-1 Pre-award compliance reviews.

(a) Prior to approval of financial assistance, all applications for financial assistance shall be reviewed by the Associate Director for Human rights or his/her designee, who will make a written determination as to whether the applicant is in compliance with title VI, section 624 of the Economic Opportunity Act of 1964, as amended, and the requirements of this part. The basis for such a determination shall be submission of an assurance of compliance and a review of the compliance data and information submitted by the applicant, and any relevant compliance review reports on file with CSA. Where a determination cannot be made from this data, the Office of Human Rights will require the submission of necessary additional information and may take additional steps. Such additional steps may include, for example, commu

nicating with local government officials or protected class organizations and field reviews.

(b) No application shall be approved unless it is determined that the applicant is in compliance with title VI, section 624 of the Economic Opportunity Act of 1964, as amended, and this part or the applicant has agreed in writing to take necessary enumerated steps within a stated period of time to come into compliance. Such an agreement must be approved by the Associate Director for Human Rights and made a part of the conditions of the grant.

(c) If the grantee fails or refuses to enter into such an agreement, the Associate Director for Human rights shall notify the recipient and the Assistant Attorney General for Civil Rights in writing of:

(1) The preliminary findings setting forth the reasons for the applicant's noncompliance;

(2) The actions necessary to come into compliance; and

(3) The fact that the applicant has 10 days to come into compliance and that the applicant may provide during this time a documentary submission responding to, rebutting, or denying the allegations raised in the notice to them.

(d) If within this 10-day period the applicant has not complied with the actions set forth to come into compliance, or voluntary compliance has not been secured, or has not satisfactorily rebutted the allegations, the Associate Director for Human Rights shall make a formal determination of compliance, notify the grantee and the Assistant Attorney General for Civil Rights, and institute proceedings under subpart E. (e) CSA shall defer action on applications for assistance during the pendency of enforcement proceedings under this section.

§ 1010.30-2 Post-award review.

(a) Each grantee shall submit an annual report which will contain the compliance information specified in § 1010.20-3.

(b) The Office of Human Rights will periodically conduct compliance reviews of selected grantees.

(c) The Office of Human Rights shall seek to review those grantees which

have the greatest disparity in the delivery of services or which appear to have the most serious employment problems as defined by §1010.10-3. Selection for review shall be made on the basis of the following factors:

(1) The relative disparities between the percentage of the eligible minority or female populations, if appropriate, receiving program benefits and the percentage of eligible minorities or females, if appropriate, in the eligible population.

(2) The relative disparities between the percentage of minorities and females in the relevant labor market and the percentage of minorities and females employed by the grantee;

(3) The number and nature of compliants filed against a grantee either with CSA or other Federal agencies;

(4) The scope of problems revealed as a result of an investigation of a compliant filed with CSA and other appropriate Federal, state and local civil rights agencies; and

(5) The amount of assistance provided to a grantee.

(d) Within 15 days of the selection of a grantee for review, the grantee shall be notified that it has been selected for a compliance review and the review shall be initiated.

(e) The grantee shall be informed that it may at any time prior to CSA's findings make a documentary submission responding to, rebutting, or denying allegations raised in the course of the compliance review.

(f) Within 180 days for the initiation of a compliance review, the Associate Director for Human Rights or his/her designee shall notify the grantee in writing of:

(1) Preliminary findings;

(2) Recommendations for achieving voluntary compliance, where appropriate; and

(3) The opportunity to engage in voluntary compliance negotiations, where appropriate.

The Associate Director for Human Rights or his/her designee shall notify the Assistant Attorney General for Civil Rights at the same time he/she notifies the grantee of any matter where recommendations for achieving voluntary compliance are made.