ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Friday, April 26, 1996                 TAG: 9604260069
SECTION: VIRGINIA                 PAGE: C-3  EDITION: METRO 
DATELINE: RICHMOND
SOURCE: Associated Press 


VHDA NOT HYPOCRITICAL, ALLEN SAYS BORROWERS FACE STRICTER TEST THAN WORKERS

Gov. George Allen denied Thursday that the Virginia Housing Development Authority's policy of denying low-interest home loans to unmarried couples while applying far more liberal workplace rules for its own employees amounts to a double standard.

``This is two different things,'' Allen said at a news conference. ``They're not giving loans to these individuals [employees].''

The VHDA in January reversed a policy it adopted in June 1994 to allow unrelated people to pool their incomes when applying for loans. The decision marked a return to a policy of making loans only to people related by marriage, blood or adoption. The measure, in effect, denies loans to homosexuals who wish to obtain them with their partners.

Allen pushed for the change, and it was approved on a 6-2 vote. The six commission members Allen appointed voted for the new policy.

``We feel like the new regulation will encourage the traditional family,'' VHDA commission Chairman Michael G. Miller said at the time.

But Section 603.12 of the VHDA's own ``Personnel Policies and Procedures'' for ``illness-death in family'' leave goes beyond the traditional definition of family.

It allows leave with full pay for employees in the event of illness or death of ``parents, spouse, children, brother, sister, grandparents, `significant others' or any individual residing in the same household as the employee.''

And, ``absences caused by pregnancy, miscarriage, abortion or childbirth, regardless of marital status,'' are covered by the maternity leave policy.

Kent Willis, executive director of the American Civil Liberties Union, denounced the VHDA policy as ``grand hypocrisy.'' His organization plans to challenge the loan policies in court.

But Allen said he saw no hypocrisy. ``Folks are trying to make something out of nothing,'' he said. ``This is completely different subject matter.''

VHDA employees are not allowed to seek or receive agency loans.

VHDA declined to comment on the leave policy. ``We do not discuss personnel policies publicly,'' said spokesman Mike Anderson.

``Significant others'' also use the agency's exercise parlor, said a source familiar with the VHDA's personnel policies. The source spoke on condition of anonymity, but Anderson confirmed that a VHDA employee may pay a 77-cent monthly fee that allows the employee and one friend to use the exercise room.

The U.S. Department of Housing and Urban Development, the Federal Trade Commission and the Federal Reserve Board are checking whether VHDA's lending rules comply with federal regulations.

Lloyd A. Jones, state director for the federal Rural Development program, said the general counsel of his parent agency, the U.S. Department of Agriculture, is reviewing the VHDA policy.

He said Rural Development would stop guaranteeing the housing authority's loans if it is determined that the policy violates federal laws.

Jones has expressed concern in letters to VHDA commissioners that the new regulations violate the Fair Housing Act of 1988, the Equal Credit Opportunity Act and various civil rights laws.

The VHDA is a quasi-governmental public mortgage organization created by the General Assembly to help low- and moderate-income Virginians obtain housing. It has about 275 employees.


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