HUD Questions Costa Mesa’s Policy on Aliens

Federal officials said Friday that Costa Mesa’s controversial policy of withholding city money from charitable groups that serve illegal aliens may violate anti-discrimination law and could result in the loss of hundreds of thousands of dollars in future federal assistance.

Scott Reed, a spokesman for the Los Angeles office of the U.S. Department of Housing and Urban Development, said his agency has expressed concern to city officials and has requested more information about the policy.

“We have a problem with it,” Reed said. “It has just been brought to our attention in the last two days, and we haven’t seen anything in writing, but we have referred the matter to our legal department for review.”

Opinion on Effect

Reed said the policy could conflict with federal guidelines that bar discrimination on the basis of national origin.

“In our opinion that covers everyone, including illegal aliens,” Reed said. “If the policy does indeed go against rules, it could affect the awarding of future (Community Development) Block Grant money.”

The city received $809,000 in HUD block grant money this year.

Costa Mesa’s unprecedented decision this week to withhold funds from all charitable organizations that assist illegal aliens--except those providing medical aid--provoked protests and a storm of controversy. Many critics said the measure would be impossible to enforce.

Costa Mesa City Manager Allan L. Roeder defended the policy but said that the city will cooperate with federal officials.

“Prior to the policy being drafted, we checked with our local HUD representative to see if there would be a conflict and were advised that he didn’t feel there would be,” Roeder said. “Subsequently, HUD has opted to take a second look, and we support their doing that.”

Roeder also said that if the policy is found to violate federal law, groups that receive federal funds would be exempt.

Special Provision

“Because of the unique nature of the policy, it includes a provision that should state or federal regulations preclude its application, then it would not apply to those funding sources,” he said.

But Roeder said city officials do not intend to scuttle the entire measure. He said it would still apply to organizations that receive local taxpayer money.

HUD annually awards Community Development Block Grants to cities and counties for neighborhood development projects and to improve facilities and services. Local officials decide which organizations will get a share, but HUD monitors the programs to make sure that they conform to anti-discrimination and other guidelines.

Among other requirements, the grants must benefit low- and moderate-income people or be used to address needs that present a threat to the health or welfare of a community.

About $550,000 of the $809,000 in block grant money Costa Mesa received this year is scheduled to go to more than 60 charitable organizations. They include such diverse groups as the Boys and Girls Club, the YMCA, the Costa Mesa Literacy Center, the Harbor Area Adult Day Care Center and the Sunshine Community Preschool.

Contracts to Be Sent Soon

Contracts containing the new illegal-alien restriction are expected to be sent to the organizations within about 45 days, city officials said.

Officials with the Orange County Human Relations Commission charged Friday that the city policy could lead to discrimination against Latinos and adversely affect charitable organizations in the county.

The commission has scheduled a meeting for Thursday to discuss ramifications of the policy. City officials, representatives of city-funded agencies, the Hispanic Development Council of the United Way and the Epsicopal Vicar of the Catholic Diocese will be at the meeting.

“Our goal is to illustrate to (Costa Mesa Mayor) Peter Buffa some of the significant and negative impacts that were perhaps unintended by the council on agencies involved in charity work,” said Commission Executive Director Rusty Kennedy. “Also, everyone is concerned about the potential for serious discrimination in the implementation of this.”

Buffa, who voted for the policy along with Councilmen Orville Amburgey and Ed Glasgow, said he has agreed to meet with Kennedy’s group but that it is unlikely that he will change his position.

‘Try It and See’

“The response I have gotten has been overwhelmingly positive,” Buffa said. “I think the only logical way to proceed is to try it and see if it is doing any good. We want to know if it is creating an unfair burden on groups.”

The policy has no provision for enforcement or monitoring, and it does not outline how organizations should implement it.

However, Roeder said Costa Mesa officials have “an obligation to establish some guidelines” for screening clients.

“We will work with nonprofit organizations and assist them in drafting some guidelines on how to go about this,” Roeder said. “We do realize this could fundamentally affect how nonprofit groups in the county work.”