Editorial Note on Part 30
Editorial Note: Nomenclature changes to part 30 appear at 87 FR 8197, Feb. 14, 2022.

§ 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, or the Assistant Secretary for Public and Indian Housing, or his or her designee, may initiate a civil money penalty 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. Examples of covered violations include, but are not limited to, 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 $47,596.
( 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, as amended at 74 FR 2751, Jan. 15, 2009; 78 FR 4059, Jan. 18, 2013; 81 FR 38935, June 15, 2016; 82 FR 24525, May 30, 2017; 83 FR 32793, July 16, 2018; 84 FR 9454, Mar. 15, 2019; 85 FR 13044, Mar. 6, 2020; 86 FR 14373, Mar. 16, 2021; 87 FR 24421, Apr. 26, 2022; 88 FR 9748, Feb. 15, 2023; 89 FR 13616, Feb. 23, 2024]