[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR902.77]

[Page 292]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 902_PUBLIC HOUSING ASSESSMENT SYSTEM--Table of Contents
 
                 Subpart G_PHAS Incentives and Remedies
 
Sec. 902.77  Referral to the Departmental Enforcement Center (DEC).

    (a) Referral of Troubled PHA to the DEC for failing to execute or 
meet MOA requirements. (1) Failure of a troubled PHA to execute or meet 
the requirements of a MOA in accordance with Sec. 902.75 constitutes a 
substantial default under Sec. 902.79 and may result in referral of the 
PHA to the DEC. The TARC will recommend to the Assistant Secretary for 
Public and Indian Housing that a troubled performer PHA be declared in 
substantial default. In accordance with Sec. Sec. 902.79, the 
Assistant Secretary shall notify the PHA of the default and allow the 
PHA an opportunity to cure the default. A PHA shall be referred to the 
DEC if the PHA fails to cure the default within the a period not to 
exceed 30 days unless the Assistant Secretary for Public and Indian 
Housing determines that a longer period is appropriate.
    (2) Actions of the DEC. The DEC shall initiate:
    (i) The judicial appointment of a receiver, or
    (ii) An administrative receivership at HUD's option but only:
    (A) With respect to PHAs with fewer than 1250 units, or
    (B) While HUD's petition for judicial receivership is pending; and
    (iii) Upon the recommendation of the Assistant Secretary for Public 
and Indian Housing, the interventions provided in Sec. 902.83, and may 
initiate such other sanctions available to HUD, including, limited 
denial of participation, suspension, debarment, and referral to the 
appropriate Federal government agencies or offices for the imposition of 
civil or criminal sanctions.
    (b) Referral of PHAs in Substantial Default to the DEC. A PHA that 
is not designated as troubled but that has been found to be in 
substantial default under the provisions of Sec. 902.79 shall also be 
referred to the DEC. The Assistant Secretary for Public and Indian 
Housing makes the determination that a PHA is in substantial default. In 
accordance with Sec. 902.79, the Assistant Secretary shall notify the 
PHA of the default and allow the PHA an opportunity to cure the default. 
If the PHA fails to cure the default within the specified period time, 
the PHA shall be referred to the DEC. The DEC shall initiate the 
judicial appointment of a receiver or the interventions provided in 
Sec. 902.83 as recommended by the Assistant Secretary for Public and 
Indian Housing and may initiate such other sanctions available to HUD, 
including, limited denial of participation, suspension, debarment, and 
referral to the appropriate Federal government agencies or offices for 
the imposition of civil or criminal sanctions.
    (c) Receivership/Possession of PHA by HUD. (1) If a judicial 
receiver is appointed, the receiver, in addition to the powers provided 
by the court, shall have available the powers provided by section 
6(j)(3)(C) of the Act (42 U.S.C. 1437d(j)(3)(C)).
    (2) If HUD assumes responsibility for all or part of the PHA, the 
Secretary of HUD shall have available the powers provided by section 
6(j)(3)(D) of the Act (42 U.S.C. 1437d(j)(3)(D)).
    (3) If an administrative receiver is appointed, the Secretary may 
delegate to the administrative receiver any of the powers provided to 
the Secretary as described in paragraph (e)(2) of this section, in 
accordance with section 6(j)(3)(D).
    (4) The appointments of receivers, the actions of receivers, and 
HUD's responsibilities toward the receivers are governed by the 
provisions of section 6(j)(3).
    (d) To the extent feasible, while a PHA is under a referral to the 
DEC, all services to residents will continue uninterrupted.

[65 FR 1738, Jan. 11, 2000, as amended at 65 FR 36046, June 6, 2000]

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