§ 28.10 Basis for civil penalties and assessments. ( a ) *Claims.* ( 1 ) A civil penalty of not more than $13,946 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a claim that the person knows or has reason to know: ( i ) Is false, fictitious, or fraudulent;
( ii ) Includes or is supported by a written statement which asserts a material fact which is false, fictitious, or fraudulent;
( iii ) Includes or is supported by any written statement that: ( A ) Omits a material fact;
( B ) Is false, fictitious, or fraudulent as a result of the omission; and
( C ) Is a statement in which the person making, presenting, or submitting such statement has a duty to include such material fact; or
( iv ) Is for payment for the provision of property or services which the person has not provided as claimed.
( 2 ) Each voucher, invoice, claim form, or other individual request or demand for property, services, or money constitutes a separate claim.
( 3 ) A claim shall be considered made to HUD, to a recipient, or to a party when the claim actually is made to an agent, fiscal intermediary, or other entity, including any State or political subdivision of a State, acting for or on behalf of HUD, the recipient, or the party.
( 4 ) Each claim for property, services, or money is subject to a civil penalty without regard to whether the property, services, or money actually is delivered or paid.
( 5 ) Liability under this part shall not lie if the amount of money or value of property or services claimed exceeds $150,000 as to each claim that a person submits. For purposes of paragraph (a) of this section, a group of claims submitted simultaneously as part of a single transaction shall be considered a single claim.
( 6 ) If the Government has made any payment, transferred property, or provided services on a claim, then the Government may assess a person found liable up to twice the amount of the claim or portion of the claim that is determined to be in violation of paragraph (a)(1) of this section.
( b ) *Statements.* ( 1 ) A civil penalty of not more than $13,946 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a written statement that: ( i ) ( A ) Asserts a material fact which is false, fictitious, or fraudulent; or
( B ) ( 1 ) Omits a material fact; and
( 2 ) Is false, fictitious, or fraudulent as a result of such omission;
( ii ) In the case of a statement described in (b)(1)(i)(B) of this section, is a statement in which the person making, presenting, or submitting such statement has a duty to include such material fact; and
( iii ) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement.
( 2 ) Each written representation, certification, or affirmation constitutes a separate statement.
( 3 ) A statement shall be considered made to HUD when the statement is actually made to an agent, fiscal intermediary, or other entity, including any State or political subdivision of a State, acting for or on behalf of HUD.
( c ) *Limit on liability.* If the claim or statement relates to low-income housing benefits or housing benefits for the elderly or handicapped, then a person may be held liable only if he or she has made or caused to be made the claim or statement in the course of applying for such benefits, with respect to his or her eligibility, or family's eligibility, to receive such benefits. For purposes of paragraph (c) of this section, “*housing benefits*” means any instance wherein funds administered by the Secretary directly or indirectly permit low-income families or elderly or handicapped persons to reside in housing that otherwise would not be available to them.
( d ) *Specific intent.* No proof of specific intent to defraud is required to establish liability under this section.
( e ) *Joint and several liability.* A civil penalty or assessment may be imposed jointly and severally if more than one person is determined to be liable.
[61 FR 50213, Sept. 24, 1996, as amended at 68 FR 12787, Mar. 17, 2003; 72 FR 5588, Feb. 6, 2007; 73 FR 76831, Dec. 17, 2008; 78 FR 4059, Jan. 18, 2013; 81 FR 38935, June 15, 2016; 82 FR 24524, May 30, 2017; 83 FR 32793, July 16, 2018; 84 FR 9453, Mar. 15, 2019; 85 FR 13043, Mar. 6, 2020; 86 FR 14372, Mar. 16, 2021; 86 FR 31619, June 15, 2021; 87 FR 24420, Apr. 26, 2022; 88 FR 9748, Feb. 15, 2023; 89 FR 13616, Feb. 23, 2024]