HUD Handbook 4350.3 § 4-12

This paragraph describes affirmative fair housing marketing activities and
         implementation of the Affirmative Fair Housing Marketing Plan (Form HUD-935.2A)
         approved for the property. It also discusses compliance and requirements for updating
         the Affirmative Fair Housing Marketing Plan.

        A.       Key Requirements

                 1.       The marketing effort should attract a broad cross-section of the eligible
                          population without regard to race, color, religion, sex, disability, familial
                          status, or national origin.

                 2.       Whenever additional applicants are needed to fill available units,
                          advertising must be carried out in accordance with the HUD-approved
                          Affirmative Fair Housing Marketing Plan, or, in cases where no Affirmative
                          Fair Housing Marketing Plan is required, marketing must be conducted in
                          an affirmative manner.

3.       During compliance reviews, owners must be able to provide information
                          documenting their compliance with affirmative fair housing marketing
                          requirements and their approved plan.

        B.       Affirmative Fair Housing Marketing Plan

                 Owners must comply with the requirements of their HUD-approved Affirmative
                 Fair Housing Marketing Plan, which is designed to promote equal housing choice
                 for all prospective tenants regardless of race, color, religion, sex, disability,
                 familial status, or national origin.

                 1.       The purpose of the plan is to ensure that eligible families of similar income
                          levels will have a similar range of housing opportunities.

                 2.       The plan outlines marketing strategies the owner must use, including
                          special efforts to attract persons who are least likely to apply because of
                          such factors as the racial and ethnic composition of the neighborhood in
                          which the property is located. Marketing should also seek to reach
                          potential applicants outside the immediate neighborhood if marketing only
                          within the neighborhood would create a disparate impact against certain
                          classes (e.g., if the entire neighborhood includes no minorities).

                 3.       Owners must monitor the results of the marketing effort and adjust their
                          marketing techniques as necessary.

                 4.       Owners may not require local residency as a prerequisite for admission.
                          However, with HUD approval, owners may give preference to residents of
                          the municipality in which the property is located. HUD will approve the
                          use of local residency preferences only if such preferences are found to
                          be consistent with nondiscrimination and equal opportunity requirements
                          and the goals of the Affirmative Fair Housing Marketing Plan. See
                          paragraph 4-6 C.1 for more information about residency preferences.

                 5.       HUD does not require subsidized multifamily projects built prior to
                          February 1972 to have an Affirmative Fair Housing Marketing Plan, unless
                          the property has been substantially rehabilitated subsequent to February
                          1972 or the plan is required by a housing assistance contract. However,
                          owners of such properties are required to affirmatively market their units
                          to those least likely to apply.

        C.       Special Marketing Requirements

                 1.       All Section 8 units. Owners must target their marketing and outreach
                          activities to attract applicants with incomes below the very low-income
                          limit. Owners must also target their marketing and outreach activities to
                          attract applicants with incomes at or below the extremely low-income limit
                          to achieve the income targeting requirements (see paragraph 4-5).

                 2.       New construction and substantial rehabilitation units NOT designed for
                          disabled or elderly persons (except previously HUD-owned properties).

Before marketing to other prospective tenants, owners must market to
                          nonelderly families, including those with disabilities, who are:

                          a.       Least likely to apply as identified in the Affirmative Fair Housing
                                   Marketing Plan; and

                          b.       Expected to reside in the community because of their current or
                                   planned employment.

                 3.       Section 202 PRAC and Section 811 PRAC properties - Supportive
                          Housing for the Elderly and Supportive Housing for Persons with
                          Disabilities.

                          a.       Owners must commence and continue diligent marketing activities
                                   not later than 90 days before the anticipated date of availability of
                                   the first unit or occupancy of the group home. Marketing activities
                                   must include the provision of notices on the availability of housing
                                   under the program to operators of temporary housing for the
                                   homeless in the same housing market.

                          b.       At the time of PRAC execution, the owner must submit to HUD a
                                   list of leased and unleased assisted units (or, in the case of a
                                   group home, leased and unleased residential spaces) with a
                                   justification for the unleased units or residential spaces in order to
                                   qualify for vacancy payments for these units or spaces.

        D.       Advertising

                 When a property is initially leased, or when available units cannot be filled from
                 applicants on a waiting list, or no waiting list exists; the owner must advertise to
                 attract eligible applicants in the market area who are least likely to apply.
                 Advertising must be directed to all potential applicants regardless of race, color,
                 religion, sex, disability, familial status, or national origin.

                 1.       An affirmative marketing program must be in effect for each multifamily
                          project throughout the life of the mortgage. Such a program typically
                          involves publicizing the availability of housing opportunities to all persons,
                          regardless of race, color, religion, sex, disability, familial status, or
                          national origin, in the media most likely to be used by the applicants,
                          including minority publications or other minority outlets that are available
                          in the housing market area.

                 2.       Owners must target advertising to groups other than the typical population
                          of the neighborhood in which the property is located, reaching out to
                          applicants who are least likely to apply because they are not the
                          predominant racial or ethnic group in the neighborhood.

                 3.       All advertising must include either the HUD-approved Equal Housing
                          Opportunity logo, slogan, or statement. All advertising depicting persons
                          should depict members of all eligible protected classes including
                          individuals from both majority and minority groups.

4.       The owner’s responsibility to market projects to those least likely to apply
                          includes marketing to the LEP population in the community.

        E.       Records

                 During compliance reviews, owners must be able to provide documentation that
                 marketing activities for the property have been consistent with affirmative fair
                 housing marketing requirements and the approved plan for the property. Useful
                 records for this purpose include copies of media and marketing materials,
                 records of marketing activities conducted, and documentation of any special
                 marketing activities conducted in accordance with the property’s plan.

        F.       Updating the Marketing Plan

                 1.       The approved Affirmative Fair Housing Marketing Plan must be followed.
                          It is the owner’s blueprint for marketing activity.

                 2.       Owners must review their Affirmative Fair Housing Marketing Plan every
                          five years or when the local Community Development jurisdiction’s
                          Consolidated Plan is updated.

                 3.       When reviewing the plan, the owner should look at the current
                          demographics of the market area to determine if there have been
                          demographic changes in the population in terms of race, ethnicity,
                          religion, persons with disabilities and/or large families. The owner will
                          then determine if the population least likely to apply for the housing is still
                          the population identified in the Affirmative Fair Housing Marketing Plan,
                          whether current advertising sources still exist, whether the advertising
                          and publicity cited in the current Affirmative Fair Housing Marketing Plan
                          are still the most applicable or whether advertising sources should be
                          changed or expanded. Even if the demographics of the community have
                          not changed, the owner should determine if the outreach currently being
                          performed is reaching those it is intended to reach as measured by
                          project occupancy. If not, the Affirmative Fair Housing Marketing Plan
                          should be updated.

                 4.       The revised plan must be submitted to HUD for approval. HUD or the
                          contract administrator will review whether affirmative marketing is actually
                          being performed in accordance with the Affirmative Fair Housing
                          Marketing Plan during an on-site monitoring review.

                 5.       If based on their review the owner determines the Affirmative Fair
                          Housing Marketing Plan does not need to be revised, they should
                          maintain a file documenting what was reviewed, what was found as a
                          result of the review, and why no change is required. HUD or the contract
                          administrator may review this documentation during a monitoring review.

        G.       Fair Housing Poster

                 1.       Owners must post and maintain the required Equal Housing Opportunity
                          poster.

a.       Owners may obtain copies of the poster from their HUD Field
                                   Office.

                          b.       Owners may use a facsimile of the poster if the facsimile and
                                   lettering are equivalent in size and legibility to the poster available
                                   from HUD.

                 2.       The Fair Housing Poster must be prominently displayed so it is readily
                          apparent to all persons seeking housing.