ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, February 9, 1996 TAG: 9602090047
SECTION: VIRGINIA PAGE: C-2 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
Several federal agencies are questioning the legality of the Virginia Housing Development Authority's decision to deny low-interest home loans to unmarried couples, including homosexuals.
The housing authority's board of commissioners voted last month to return to a former policy of making loans only to people related by marriage, blood or adoption. Such a policy was in effect from 1981 to 1994, when unrelated couples became eligible to borrow.
The decision, requested by Gov. George Allen in a letter to the commission last year, was criticized by gay-rights advocates and civil libertarians who said it makes Virginia one of the nation's most discriminatory states.
Lloyd A. Jones, state director for the federal Rural Economic and Community Development Service, said his agency probably will stop guaranteeing the housing authority's loans if it finds the policy violates federal laws.
The U.S. Department of Housing and Urban Development, the Federal Trade Commission and the Federal Reserve Board also are checking whether the VHDA's lending rules comply with federal regulations.
Jones wrote the housing authority's commissioners recently, expressing concern that the new regulations violate the Fair Housing Act of 1988, the Equal Credit Opportunity Act and various civil rights laws. If they do, Jones said, ``We would have to terminate participation'' with the Virginia Housing Development Authority.
Mike Anderson, a spokesman for the housing authority, said the regulations comply with all federal housing and credit laws.
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