Editorial Note on Part 200
Editorial Note: Nomenclature changes to part 200 appear at 69 FR 18803, Apr. 9, 2004.

§ 200.192 Removal of 203(k) consultant. ( a ) *Cause for removal.* HUD may remove a consultant from the list for any cause that HUD determines to be detrimental to HUD or its programs. Cause for removal includes, but is not limited to: ( 1 ) Poor performance on a HUD quality control field review;
( 2 ) Failure to comply with applicable regulations or other written instructions or standards issued by HUD;
( 3 ) Failure to comply with applicable Civil Rights requirements;
( 4 ) Being debarred or suspended, or subject to a limited denial of participation;
( 5 ) Misrepresentation or fraudulent statements;
( 6 ) Failure to retain standing as a state licensed architect or state-licensed engineer (unless the consultant can demonstrate the required three years experience as a home inspector or remodeling contractor);
( 7 ) Failure to retain standing as a state licensed home inspector, if the consultant is located in a state that requires such licensing; or
( 8 ) Failure to respond within a reasonable time to HUD inquiries or requests for documentation.
( b ) *Procedure for removal.* A consultant that is debarred or suspended, or subject to a limited denial of participation will be *automatically* removed from the list. In all other cases, the following procedure for removal will be followed: ( 1 ) HUD will give the consultant written notice of the proposed removal. The notice will state the reasons for, and the duration of, the proposed removal.
( 2 ) The consultant will have 20 days from the date of the notice (or longer, if provided in the notice) to submit a written response appealing the proposed removal and to request a conference. A request for a conference must be in writing and must be submitted along with the written response.
( 3 ) A HUD official will review the appeal and send a response either affirming, modifying, or canceling the removal. The HUD official will not be someone who was involved in HUD's initial removal decision. HUD will respond with a decision within 30 days of receiving the appeal or, if the consultant has requested a conference, within 30 days after the completion of the conference. HUD may extend the 30-day period by providing written notice to the consultant.
( 4 ) If the consultant does not submit a timely written response, the removal will be effective 20 days after the date of HUD's initial removal notice (or after a longer period provided in the notice). If a written response is submitted, and the removal decision is affirmed or modified, the removal will be effective on the date of HUD's notice affirming or modifying the initial removal decision.
( c ) *Placement on the list after removal.* A consultant that has been removed from the list may apply for placement on the list (in accordance with § 200.191) after the period of the consultant's removal from the list has expired. An application will be rejected if the period for the consultant's removal from the list has not expired.
( d ) *Other action.* Nothing in this section prohibits HUD from taking such other action against a consultant, as provided in 2 CFR part 2424, or from seeking any other remedy against a consultant, available to HUD by statute or otherwise.
[67 FR 52380, Aug. 9, 2002, as amended at 72 FR 73494, Dec. 27, 2007]