42 U.S.C. § 1437z-1 : US Code - Section 1437Z-1: Civil money penalties against section 1437f owners

Search 42 U.S.C. § 1437z-1 : US Code - Section 1437Z-1: Civil money penalties against section 1437f owners

(a) In general
(1) Effect on other remedies
The penalties set forth in this section shall be in addition to
any other available civil remedy or any available criminal
penalty, and may be imposed regardless of whether the Secretary
imposes other administrative sanctions.
(2) Failure of Secretary
The Secretary may not impose penalties under this section for a
violation, if a material cause of the violation is the failure of
the Secretary, an agent of the Secretary, or a public housing
agency to comply with an existing agreement.
(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
The amount of a penalty imposed for a violation under this
subsection, as determined by the Secretary, may not exceed
$25,000 per violation.
(c) Agency procedures
(1) Establishment
The Secretary shall issue regulations establishing standards
and procedures governing the imposition of civil money penalties
under subsection (b) of this section. 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)
of this section.
(2) Final orders
(A) In general
If a hearing is not requested before the expiration of the 15-
day period beginning on the date on which the notice of
opportunity for hearing is received, the imposition of a
penalty under subsection (b) of this section shall constitute a
final and unappealable determination.
(B) Effect of review
If the Secretary reviews the determination or order, the
Secretary may affirm, modify, or reverse that determination or
order.
(C) Failure to review
If the Secretary does not review that determination or order
before the expiration of the 90-day period beginning on the
date on which the determination or order is issued, the
determination or order shall be final.
(3) Factors in determining amount of penalty
In determining the amount of a penalty under subsection (b) of
this section, 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
No payment of a civil money penalty levied under this section
shall be payable out of project income.
(d) Judicial review of agency determination
Judicial review of determinations made under this section shall
be carried out in accordance with section 1735f-15(e) of title 12.
(e) Remedies for noncompliance
(1) Judicial intervention
(A) In general
If a person or entity fails to comply with the determination
or order of the Secretary imposing a civil money penalty under
subsection (b) of this section, after the determination or
order is no longer subject to review as provided by subsections
(c) and (d) of this section, the Secretary may request the
Attorney General of the United States to bring an action in an
appropriate United States district court to obtain a monetary
judgment against that person or entity and such other relief as
may be available.
(B) Fees and expenses
Any monetary judgment awarded in an action brought under this
paragraph may, in the discretion of the court, include the
attorney's fees and other expenses incurred by the United
States in connection with the action.
(2) Nonreviewability of determination or order
In an action under this subsection, the validity and
appropriateness of the determination or order of the Secretary
imposing the penalty shall not be subject to review.
(f) Settlement by Secretary
The Secretary may compromise, modify, or remit any civil money
penalty which may be, or has been, imposed under this section.
(g) Deposit of penalties
(1) In general
Notwithstanding any other provision of law, if the mortgage
covering the property receiving assistance under section 8 [42
U.S.C. 1437f] is insured or was formerly insured by the
Secretary, the Secretary shall apply all civil money penalties
collected under this section to the appropriate insurance fund or
funds established under this chapter, as determined by the
Secretary.
(2) Exception
Notwithstanding any other provision of law, if the mortgage
covering the property receiving assistance under section 8 [42
U.S.C. 1437f] is neither insured nor formerly insured by the
Secretary, the Secretary shall make all civil money penalties
collected under this section available for use by the appropriate
office within the Department for administrative costs related to
enforcement of the requirements of the various programs
administered by the Secretary.
(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.