[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

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

[CITE: 24CFR901.205]



[Page 258]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 901_PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM--Table of Contents

 

Sec.  901.205  Notice and response.



    (a) If information from an annual assessment, as described in Sec.  

901.100, a management review or audit, or any other credible source 

indicates that there may exist events or conditions constituting a 

substantial breach or default, the Department shall advise a PHA of such 

information. The Department is authorized to protect the confidentiality 

of the source(s) of such information in appropriate cases. Before taking 

further action, except in cases of apparent fraud or criminality, and/or 

in cases where emergency conditions exist posing an imminent threat to 

the life, health, or safety of residents, the Department shall afford 

the PHA a timely opportunity to initiate corrective action, including 

the remedies and procedures available to PHAs designated as ``troubled 

PHAs,'' or to demonstrate that the information is incorrect.

    (b) In any situation determined to be an emergency, or in any case 

where the events or conditions precipitating the intervention are 

determined to be the result of criminal or fraudulent activity, the 

Assistant Secretary is authorized to intercede to protect the residents' 

and the Department's interests by causing the proposed interventions to 

be implemented without further appeals or delays.

    (c) Upon a determination or finding that events have occurred or 

that conditions exist that constitute a substantial default, the 

Assistant Secretary shall provide written notification of such 

determination or finding to the affected PHA. Written notification shall 

be transmitted to the Executive Director, the Chairperson of the Board, 

and the appointing authority(s) of the Board, and shall include, but 

need not necessarily be limited to:

    (1) Identification of the specific covenants, conditions, and/or 

agreements under which the PHA is determined to be in noncompliance;

    (2) Identification of the specific events, occurrences, or 

conditions that constitute the determined noncompliance;

    (3) Citation of the communications and opportunities to effect 

remedies afforded pursuant to paragraph (a) of this section;

    (4) Notification to the PHA of a specific time period, to be not 

less than 10 calendar days, except in cases of apparent fraud or other 

criminal behavior, and/or under emergency conditions as described in 

paragraph (a) of this section, nor more than 30 calendar days, during 

which the PHA shall be required to demonstrate that the determination or 

finding is not substantively accurate; and

    (5) Notification to the PHA that, absent a satisfactory response in 

accordance with paragraph (d) of this section, the Department will take 

control of the PHA, using any or all of the interventions specified in 

Sec.  901.210, and determined to be appropriate to remedy the 

noncompliance, citing Sec.  901.210, and any additional authority for 

such action.

    (d) Upon receipt of the notification described in paragraph (c) of 

this section, the PHA must demonstrate, within the time period permitted 

in the notification, factual error in the Department's description of 

events, occurrences, or conditions, or show that the events, 

occurrences, or conditions do not constitute noncompliance with the 

statute, regulation, or covenants or conditions to which the PHA is 

cited in the notification.