HUD Proposes Equal Faith Participation Amendment for Housing Programs

HUD recently announced the proposal of a new rule that would amend its already in place regulations on the equal participation of religious organizations in HUD programs, allowing different religious providers to apply for Federal funding without compromising their religious identity.

HUD’s proposed regulations are consistent with those of other Federal agencies, and amend HUD’s existing regulations.

According to HUD, the newly proposed amendments are expected to implement Executive Order (EO) 13559, Fundamental Principles and Policymaking Criteria for Partnerships with Faith-Based and Other Neighborhood Organizations, which President Obama signed in November 2010.

The EO 13559 regulation allows religious providers to contend for Federal funds without compromising or hiding their religious preference, HUD noted. The rule also provides protection for program beneficiaries, including a referral process for beneficiaries who object to the religious character of an organization that operates a program with direct Federal funds.

The Interagency Working Group on Faith-Based and Other Neighborhood Partnerships (Working Group) was also established under the EO 13559 to review and evaluate  existing Federal agencies’ regulations and policies, and develop a model set of regulations.

Under the Office of Management and Budget (OMB), agency heads were instructed to adopt regulatory changes and guidance consistent with model regulations and guidance developed by the Working Group in August 2013.

HUD’s Proposed Regulations:

• Define the following terms to distinguish between “direct” and “indirect” Federal financial assistance in applying the rule: direct Federal financial assistance, Federal financial assistance, and indirect Federal financial assistance;
• State that decisions about awards of Federal financial assistance must be free from political interference or even the appearance of such interference and must be made on the basis of merit, not on the basis of religion or religious belief;
• Replace the term “inherently religious activities” with the term “explicitly religious activities,” and define the latter term to include “activities that involve overt religious content such as worship, religious instruction, or proselytization;”
• Explain the responsibilities of intermediaries and define the term “intermediary;”
• Require faith-based organizations that receive direct Federal financial assistance from HUD to carry out activities under a HUD program to provide written notice to beneficiaries and prospective beneficiaries describing certain religious liberty protections available to them; and
• Describe the steps that must be taken to refer a beneficiary to an alternative provider when the beneficiary objects to the religious character of an organization carrying out activities under a HUD-funded program.

This proposed rule has been submitted for publication in the Federal Register. HUD is offering the general public 60 days from the date of publication to comment on the proposed rule.

Click here to view HUD’s proposed rule.