12 USC 1715z-4a - Double damages remedy for unauthorized use of multifamily housing project assets and income

U.S Code last checked for updates: May 01, 2024

§ 1715z–4a.

Double damages remedy for unauthorized use of multifamily housing project assets and income

(a)

Action to recover assets or income

(1)

The Secretary of Housing and Urban Development (referred to in this section as the “Secretary”) may request the Attorney General to bring an action in a United States district court to recover any assets or income used by any person in violation of (A) a regulatory agreement that applies to a multifamily project, nursing home, intermediate care facility, board and care home, assisted living facility, or hospital whose mortgage is or, at the time of the violations, was insured or held by the Secretary under title II of the National Housing Act [12 U.S.C. 1707 et seq.]; (B) a regulatory agreement that applies to a multifamily project whose mortgage is or, at the time of the violations, was insured or held by the Secretary under section 1701q of this title (including property subject to section 1701q of this title as it existed before November 28, 1990); (C) a regulatory agreement or such other form of regulatory control as may be imposed by the Secretary that applies to mortgages insured or held or, at the time of the violations, was 1

 So in original.

insured or held by the Secretary under section 1715z–22 of this title, but not reinsured under section 1715z–22 of this title; or (D) any applicable regulation. For purposes of this section, a use of assets or income in violation of the regulatory agreement, or such other form of regulatory control as may be imposed by the Secretary, or any applicable regulation shall include any use for which the documentation in the books and accounts does not establish that the use was made for a reasonable operating expense or necessary repair of the property and has not been maintained in accordance with the requirements of the Secretary and in reasonable condition for proper audit.

(2)

For purposes of a mortgage insured or held by the Secretary under title II of the National Housing Act [12 U.S.C. 1707 et seq.], under section 1701q of this title (including section 1701q of this title as it existed before November 28, 1990) and under section 1715z–22 of this title, the term “any person” shall mean any person or entity that owns or operates a property, as identified in the regulatory agreement, including but not limited to—

(A)

any stockholder holding 25 percent or more interest of a corporation that owns that property;

(B)

any beneficial owner of the property under any business or trust;

(C)

any officer, director, or partner of an entity owning or controlling the property;

(D)

any nursing home lessee or operator;

(E)

any hospital lessee or operator;

(F)

any other person or entity that controls the property regardless of that person or entity’s official relationship to the property; and

(G)

any heir, assignee, successor in interest, or agent of any person or entity described in the preceding subparagraphs.

(b)

Initiation of proceedings and temporary relief

(c)

Amount recoverable

(d)

Time limitation

(e)

Continued availability of other remedies

(Pub. L. 100–242, title IV, § 421, Feb. 5, 1988, 101 Stat. 1913; Pub. L. 105–65, title V, § 563, Oct. 27, 1997, 111 Stat. 1419; Pub. L. 108–447, div. I, title II, § 220, Dec. 8, 2004, 118 Stat. 3319; Pub. L. 109–115, div. A, title III, § 324, Nov. 30, 2005, 119 Stat. 2466.)

cite as: 12 USC 1715z-4a