42 USC 1437z-1 - Civil money penalties against section 1437f owners

U.S Code last checked for updates: Apr 26, 2024

§ 1437z–1.

Civil money penalties against section 1437f owners

(a)

In general

(1)

Effect on other remedies

(2)

Failure of Secretary

(b)

Violations of housing assistance payment contracts for which penalty may be imposed

(1)

Liable parties

The Secretary may impose a civil money penalty under this section on—

(A)

any owner of a property receiving project-based assistance under section 8 [42 U.S.C. 1437f];

(B)

any general partner of a partnership owner of that property; and

(C)

any agent employed to manage the property that has an identity of interest with the owner or the general partner of a partnership owner of the property.

(2)

Violations

A penalty may be imposed under this section for a knowing and material breach of a housing assistance payments contract, including the following—

(A)

failure to provide decent, safe, and sanitary housing pursuant to section 8 [42 U.S.C. 1437f]; or

(B)

knowing or willful submission of false, fictitious, or fraudulent statements or requests for housing assistance payments to the Secretary or to any department or agency of the United States.

(3)

Amount of penalty

(c)

Agency procedures

(1)

Establishment

The Secretary shall issue regulations establishing standards and procedures governing the imposition of civil money penalties under subsection (b). These standards and procedures—

(A)

shall provide for the Secretary or other department official to make the determination to impose the penalty;

(B)

shall provide for the imposition of a penalty only after the liable party has received notice and the opportunity for a hearing on the record; and

(C)

may provide for review by the Secretary of any determination or order, or interlocutory ruling, arising from a hearing and judicial review, as provided under subsection (d).

(2)

Final orders

(A)

In general

(B)

Effect of review

(C)

Failure to review

(3)

Factors in determining amount of penalty

In determining the amount of a penalty under subsection (b), the Secretary shall take into consideration—

(A)

the gravity of the offense;

(B)

any history of prior offenses by the violator (including offenses occurring before the enactment of this section);

(C)

the ability of the violator to pay the penalty;

(D)

any injury to tenants;

(E)

any injury to the public;

(F)

any benefits received by the violator as a result of the violation;

(G)

deterrence of future violations; and

(H)

such other factors as the Secretary may establish by regulation.

(4)

Payment of penalty

(d)

Judicial review of agency determination

(e)

Remedies for noncompliance

(1)

Judicial intervention

(A)

In general

(B)

Fees and expenses

(2)

Nonreviewability of determination or order

(f)

Settlement by Secretary

(g)

Deposit of penalties

(1)

In general

(2)

Exception

(h)

Definitions

In this section—

(1)

the term “agent employed to manage the property that has an identity of interest” means an entity—

(A)

that has management responsibility for a project;

(B)

in which the ownership entity, including its general partner or partners (if applicable), has an ownership interest; and

(C)

over which such ownership entity exerts effective control; and

(2)

the term “knowing” means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.

(Sept. 1, 1937, ch. 896, title I, § 29, as added Pub. L. 105–65, title V, § 562(a)(2), Oct. 27, 1997, 111 Stat. 1416.)

cite as: 42 USC 1437z-1