Fraud and abuse. Fraud and abuse means a single act or pattern of actions:
That constitutes false statement, omission, or concealment of a substantive fact, made with intent to deceive or mislead; and
That results in payment of section 8 program funds in violation of section 8 program requirements.
The terms Public Housing Agency (PHA) and Indian Housing Authority (IHA) are defined in 24 CFR part 5.
Judgment. Judgment means a provision for recovery of section 8 program funds obtained through fraud and abuse, by order of a court in litigation or by a settlement of a claim in litigation, whether or not stated in a court order.
Litigation. A lawsuit brought by a PHA to recover section 8 program funds obtained as a result of fraud and abuse.
Principal party in initiating or sustaining an action to recover. Principal party in initiating or sustaining an action to recover means the party that incurs more than half the costs incurred in:
Recertifying tenants who fraudulently obtained section 8 rental assistance;
Recomputing the correct amounts owed by tenants; and
Taking needed actions to recoup the excess benefits received, such as initiating litigation.
Costs incurred to detect potential excessive benefits in the routine day-to-day operations of the program are excluded in determining the principal party in initiating or sustaining an action to recover. For example, the cost of income verification during an annual recertification would not be counted in determining the principal party in initiating or sustaining an action to recover.
Public housing agency (PHA). A public housing agency as defined in § 791.102.
Repayment agreement. Repayment agreement means a formal document signed by a tenant or owner and provided to a PHA in which a tenant or owner acknowledges a debt, in a specific amount, and agrees to repay the amount due at specific time period(s).
[59 FR 9409, Feb. 28, 1994, as amended at 61 FR 5212, Feb. 9, 1996; 64 FR 26640, May 14, 1999]