[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR14.120]



[Page 172-173]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 14_IMPLEMENTATION OF THE EQUAL ACCESS TO JUSTICE ACT IN 

ADMINISTRATIVE PROCEEDINGS--Table of Contents

 

                      Subpart A_General Provisions

 

Sec.  14.120  Eligibility of applicants.



    (a) To be eligible for an award of attorney fees and other expenses 

under the Act, the applicant must be a party to the adversary 

adjudication for which it seeks an award. The term party is defined in 5 

U.S.C. 551(3). The applicant must show that it meets all conditions of 

eligibility set out in this subpart and in subpart B.

    (b) The types of eligible applicants are as follows:

    (1) An individual with a net worth of not more than $2 million;

    (2) The sole owner of an unincorporated business who has a net worth 

of not more than $7 million, including both personal and business 

interests, and not more than 500 employees;

    (3) A charitable or other tax-exempt organization described in 

section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3), 

with not more than 500 employees;

    (4) A cooperative association as defined in section 15(a) of the 

Agricultural Marketing Act, 12 U.S.C. 1141j(a), with not more than 500 

employees; or

    (5) Any other partnership, corporation, association, unit of local 

government, or organization with a net worth of not more than $7 million 

and not more than 500 employees.

    (c) For the purpose of eligibility, the net worth and number of 

employees of an applicant shall be determined as of the date the 

proceeding was initiated. For the purpose of eligibility of applicants 

before the HUD Board of Contract Appeals, the net worth and number of 

employees of an applicant shall be determined as of the date the 

applicant filed its appeal under 41 U.S.C. 606.

    (d) An applicant who owns an unincorporated business will be 

considered as an individual rather than a sole owner of an 

unincorporated business if the issues on which the application



[[Page 173]]



prevails are related primarily to personal interests rather than to 

business interests.

    (e) The employees of an applicant include all persons who regularly 

perform services for remuneration for the applicant, under the 

applicant's direction and control. Part-time employees shall be included 

on a proportional basis.

    (f) The net worth and number of employees of the applicant and all 

of its affiliates shall be aggregated to determine eligibility. Any 

individual, corporation or other entity that directly or indirectly 

controls or owns a majority of the voting shares or other interests of 

the applicant, or any corporation or other entity of which the applicant 

directly or indirectly owns or controls a majority of the voting shares 

or other interest, will be considered an affiliate for purposes of this 

part, unless the adjudicative officer determines that such treatment 

would be unjust and contrary to the purposes of the Act in light of the 

actual relationship between the affiliated entities. In addition, the 

adjudicative officer may determine that financial relationships of the 

applicant other than those described in this paragraph constitute 

special circumstances that would make an award unjust.

    (g) An applicant that participates in a proceeding primarily on 

behalf of one or more other persons or entities that would be ineligible 

is not itself eligible for an award.