42 U.S. Code § 1437z–1 - Civil money penalties against
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(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.
(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 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
(c) Agency procedures
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
(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.
(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—
(B) any history of prior offenses by the violator (including offenses occurring before the enactment of this section);
(d) Judicial review of agency determination
(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.
(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.
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.
In this section—
(1) the term “agent employed to manage the property that has an identity of interest” means an entity—
(B) in which the ownership entity, including its general partner or partners (if applicable), has an ownership interest; and
Source(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.)
Pub. L. 105–65, title V, § 562(b),Oct. 27, 1997, 111 Stat. 1419, provided that: “The amendments made by subsection (a) [enacting this section and amending section 1437z of this title] shall apply only with respect to—
“(1) violations that occur on or after the effective date of final regulations implementing the amendments made by this section; and
“(2) in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation that occurs on or after such date.”
“(A) In general.—The Secretary shall implement the amendments made by this section [enacting this section and amending section 1437z of this title] by regulation issued after notice and opportunity for public comment.
“(B) Comments sought.—The notice under subparagraph (A) shall seek comments as to the definitions of the terms ‘ownership interest in’ and ‘effective control’, as such terms are used in the definition of the term ‘agent employed to manage such property that has an identity of interest’.
“(2) Timing.—A proposed rule implementing the amendments made by this section shall be published not later than 1 year after the date of enactment of this Act [Oct. 27, 1997].”
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