[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: 24CFR30.68]



[Page 313]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 30_CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT--Table of 

Contents

 

                          Subpart B_Violations

 

Sec.  30.68  Section 8 owners.



    (a) Definitions. The following definitions apply to this section 

only:

    Agent employed to manage the property that has an identity of 

interest and identity of interest agent. An entity:

    (1) That has management responsibility for a project;

    (2) In which the ownership entity, including its general partner or 

partners (if applicable), has an ownership interest; and

    (3) Over which the ownership entity exerts effective control.

    Effective control. The ability to direct, alter, supervise, or 

otherwise influence the actions, policies, decisions, duties, 

employment, or personnel of the management agent.

    Entity. An individual corporation; company; association; 

partnership; authority; firm; society; trust; state, local government or 

agency thereof; or any other organization or group of people.

    Ownership interest. Any direct or indirect interest in the stock, 

partnership interests, beneficial interests (for a trust) or other 

medium of equity participation. An indirect interest includes equity 

participation in any entity that holds a management interest (e.g. 

general partner, managing member of an LLC, majority stockholder, 

trustee) or minimum equity interest (e.g., a 25% or more limited 

partner, 10% or more stockholder) in the ownership entity of the 

management agent.

    (b) General. The Assistant Secretary for Housing-Federal Housing 

Commissioner, or his or her designee, and the Assistant Secretary for 

Public and Indian Housing, or his or her designee, may initiate a civil 

money penalty action against any owner, any general partner of a 

partnership owner, or 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 a property receiving project-based assistance under 

section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) for 

a knowing and material breach of a housing assistance payments contract, 

including the following:

    (1) Failure to provide decent, safe, and sanitary housing pursuant 

to section 8 of the United States Housing Act of 1937 and 24 CFR 5.703; 

or

    (2) 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.

    (c) Maximum penalty. The maximum penalty for each violation under 

this section is $25,000.

    (d) Payment of penalty. No payment of a civil money penalty levied 

under this section shall be payable out of project income.

    (e) Exceptions. 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.



[66 FR 63442, Dec. 6, 2001]