42 U.S.C. § 12754 — Limitation on jurisdictions under court order

(a) In general: No matter what else the law says, the Secretary must make sure HOME funds are never used to carry out housing remedies, or to pay fines, penalties, or costs, in two situations. First: a court — federal, state, or local — has ruled that a participating jurisdiction violated Title VI of the Civil Rights Act of 1964, the Fair Housing Act, or any other federal, state, or local fair-housing or anti-discrimination law. Second: a jurisdiction has entered a settlement in a case where someone claimed such a violation. This bar on using funds applies except as allowed under subsection (b). (b) Remedial use of funds permitted: When a jurisdiction settles a case described above, it may use funds under this Act to carry out housing remedies — but only through activities that are otherwise eligible under the Act.