[Code of Federal Regulations]
[Title 2, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 2CFR2424.1110]

[Page 246-247]
 
                     TITLE 2--GRANTS AND AGREEMENTS
 
        CHAPTER XXIV--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 2424_NONPROCUREMENT DEBARMENT AND SUSPENSION--Table of Contents
 
                Subpart J_Limited Denial of Participation
 
Sec. 2424.1110  When may a HUD official issue a limited denial of 

participation?

    (a) An authorized HUD official may issue a limited denial of 
participation against a person, based upon adequate evidence of any of 
the following causes:
    (1) Approval of an applicant for insurance would constitute an 
unsatisfactory risk;
    (2) There are irregularities in a person's past performance in a HUD 
program;
    (3) The person has failed to maintain the prerequisites of 
eligibility to participate in a HUD program;
    (4) The person has failed to honor contractual obligations or to 
proceed in accordance with contract specifications or HUD regulations;
    (5) The person has failed to satisfy, upon completion, the 
requirements of an assistance agreement or contract;
    (6) The person has deficiencies in ongoing construction projects;
    (7) The person has falsely certified in connection with any HUD 
program, whether or not the certification was made directly to HUD;
    (8) The person has committed any act or omission that would be cause 
for debarment under 2 CFR 180.800;
    (9) The person has violated any law, regulation, or procedure 
relating to the application for financial assistance, insurance, or 
guarantee, or to the performance of obligations incurred pursuant to a 
grant of financial assistance or pursuant to a conditional or final 
commitment to insure or guarantee;
    (10) The person has made or procured to be made any false statement 
for the purpose of influencing in any way an action of the Department; 
or
    (11) Imposition of a limited denial of participation by any other 
HUD office.
    (b) Filing of a criminal Indictment or Information shall constitute 
adequate evidence for the purpose of limited denial of participation 
actions. The Indictment or Information need not be based on offenses 
against HUD.
    (c) Imposition of a limited denial of participation by any other HUD 
office shall constitute adequate evidence for a concurrent limited 
denial of participation. Where such a concurrent limited denial of 
participation is imposed, participation may be restricted on the same 
basis without the need for an additional conference or further hearing.
    (d) An affiliate or organizational element may be included in a 
limited denial of participation solely on the basis of its affiliation, 
and regardless of its knowledge of or participation in the acts 
providing cause for the sanction. The burden of proving that a 
particular affiliate or organizational element is

[[Page 247]]

currently responsible and not controlled by the primary sanctioned party 
(or by an entity that itself is controlled by the primary sanctioned 
party) is on the affiliate or organizational element.