105
(2) by adding at the end the following:
‘‘SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8
OWNERS.
‘‘(a) IN GENERAL.—
‘‘(1) EFFECT ON OTHER REMEDIES.—The pen-
alties set forth in this section shall be in addition to
any other available civil remedy or any available
criminal penalty, and may be imposed regardless of
whether the Secretary imposes other administrative
sanctions.
‘‘(2) FAILURE OF SECRETARY.—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 exist-
ing agreement.
‘‘(b) VIOLATIONS
OF HOUSING ASSISTANCE PAY-
MENT CONTRACTS FOR WHICH PENALTY MAY BE IM-
POSED.—
‘‘(1) LIABLE PARTIES.—The Secretary may im-
pose a civil money penalty under this section on—
‘‘(A) any owner of a property receiving
project-based assistance under section 8;
‘‘(B) any general partner of a partnership
owner of that property; and
106
‘‘(C) any agent employed to manage the
property that has an identity of interest with
the owner or the general partner of a partner-
ship owner of the property.
‘‘(2) VIOLATIONS.—A penalty may be imposed
under this section for a knowing and material
breach of a housing assistance payments contract,
including the following—
‘‘(A) failure to provide decent, safe, and
sanitary housing pursuant to section 8; or
‘‘(B) knowing or willful submission of
false, fictitious, or fraudulent statements or re-
quests for housing assistance payments to the
Secretary or to any department or agency of
the United States.
‘‘(3) AMOUNT OF PENALTY.—The amount of a
penalty imposed for a violation under this sub-
section, as determined by the Secretary, may not ex-
ceed $25,000 per violation.
‘‘(c) AGENCY PROCEDURES.—
‘‘(1) ESTABLISHMENT.—The Secretary shall
issue regulations establishing standards and proce-
dures governing the imposition of civil money pen-
alties under subsection (b). These standards and
procedures—
107
‘‘(A) shall provide for the Secretary or
other department official to make the deter-
mination to impose the penalty;
‘‘(B) shall provide for the imposition of a
penalty only after the liable party has received
notice and the opportunity for a hearing on the
record; and
‘‘(C) may provide for review by the Sec-
retary of any determination or order, or inter-
locutory ruling, arising from a hearing and ju-
dicial review, as provided under subsection (d).
‘‘(2) FINAL ORDERS.—
‘‘(A) IN GENERAL.—If a hearing is not re-
quested before the expiration of the 15-day pe-
riod beginning on the date on which the notice
of opportunity for hearing is received, the impo-
sition of a penalty under subsection (b) shall
constitute a final and unappealable determina-
tion.
‘‘(B) EFFECT
OF
REVIEW.—If the Sec-
retary reviews the determination or order, the
Secretary may affirm, modify, or reverse that
determination or order.
‘‘(C) FAILURE
TO
REVIEW.—If the Sec-
retary does not review that determination or
108
order before the expiration of the 90-day period
beginning on the date on which the determina-
tion or order is issued, the determination or
order shall be final.
‘‘(3) FACTORS
IN
DETERMINING
AMOUNT
OF
PENALTY.—In determining the amount of a penalty
under subsection (b), the Secretary shall take into
consideration—
‘‘(A) the gravity of the offense;
‘‘(B) any history of prior offenses by the
violator (including offenses occurring before the
enactment of this section);
‘‘(C) the ability of the violator to pay the
penalty;
‘‘(D) any injury to tenants;
‘‘(E) any injury to the public;
‘‘(F) any benefits received by the violator
as a result of the violation;
‘‘(G) deterrence of future violations; and
‘‘(H) such other factors as the Secretary
may establish by regulation.
‘‘(4) PAYMENT OF PENALTY.—No payment of a
civil money penalty levied under this section shall be
payable out of project income.
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‘‘(d) JUDICIAL REVIEW
OF AGENCY DETERMINA-
TION.—Judicial review of determinations made under this
section shall be carried out in accordance with section
537(e) of the National Housing Act.
‘‘(e) REMEDIES FOR NONCOMPLIANCE.—
‘‘(1) JUDICIAL INTERVENTION.—
‘‘(A) IN GENERAL.—If a person or entity
fails to comply with the determination or order
of the Secretary imposing a civil money penalty
under subsection (b), after the determination or
order is no longer subject to review as provided
by subsections (c) and (d), the Secretary may
request the Attorney General of the United
States to bring an action in an appropriate
United States district court to obtain a mone-
tary judgment against that person or entity and
such other relief as may be available.
‘‘(B) FEES AND EXPENSES.—Any mone-
tary judgment awarded in an action brought
under this paragraph may, in the discretion of
the court, include the attorney’s fees and other
expenses incurred by the United States in con-
nection with the action.
‘‘(2) NONREVIEWABILITY
OF
DETERMINATION
OR ORDER.—In an action under this subsection, the
110
validity and appropriateness of the determination or
order of the Secretary imposing the penalty shall not
be subject to review.
‘‘(f) SETTLEMENT BY SECRETARY.—The Secretary
may compromise, modify, or remit any civil money penalty
which may be, or has been, imposed under this section.
‘‘(g) DEPOSIT OF PENALTIES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, if the mortgage covering the prop-
erty receiving assistance under section 8 is insured
or formerly insured by the Secretary, the Secretary
shall apply all civil money penalties collected under
this section to the appropriate insurance fund or
funds established under this Act, as determined by
the Secretary.
‘‘(2) EXCEPTION.—Notwithstanding any other
provision of law, if the mortgage covering the prop-
erty receiving assistance under section 8 is neither
insured nor formerly insured by the Secretary, the
Secretary shall make all civil money penalties col-
lected under this section available for use by the ap-
propriate office within the Department for adminis-
trative costs related to enforcement of the require-
ments of the various programs administered by the
Secretary.
111
‘‘(h) DEFINITIONS.—In this section—
‘‘(1) the term ‘agent employed to manage the
property that has an identity of interest’ means an
entity—
‘‘(A) that has management responsibility
for a project;
‘‘(B) in which the ownership entity, includ-
ing its general partner or partners (if applica-
ble), has an ownership interest; and
‘‘(C) over which such ownership entity ex-
erts effective control; and
‘‘(2) the term ‘knowing’ means having actual
knowledge of or acting with deliberate ignorance of
or reckless disregard for the prohibitions under this
section.’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply only with respect to—
(1) violations that occur on or after the effec-
tive date of final regulations implementing the
amendments made by this section; and
(2) in the case of a continuing violation (as de-
termined by the Secretary of Housing and Urban
Development), any portion of a violation that occurs
on or after such date.
(c) IMPLEMENTATION.—
112
(1) REGULATIONS.—
(A) IN GENERAL.—The Secretary shall im-
plement the amendments made by this section
by regulation issued after notice and oppor-
tunity for public comment.
(B) 
COMMENTS
SOUGHT.—The 
notice
under subparagraph (A) shall seek comments as
to the definitions of the terms ‘‘ownership inter-
est in’’ and ‘‘effective control’’, as such terms
are used in the definition of the term ‘‘agent
employed to manage such property that has an
identity of interest’’.
(2) TIMING.—A proposed rule implementing the
amendments made by this section shall be published
not later than 1 year after the date of enactment of
this Act.
SEC. 323. EXTENSION OF DOUBLE DAMAGES REMEDY.
Section 421 of the Housing and Community Develop-
ment Act of 1987 (12 U.S.C. 1715z–4a) is amended—
(1) in subsection (a)(1)—
(A) in the first sentence, by striking ‘‘Act;
or (B)’’ and inserting the following: ‘‘Act; (B)
a regulatory agreement that applies to a multi-
family project whose mortgage is insured or
held by the Secretary under section 202 of the
113
Housing Act of 1959 (including property sub-
ject to section 202 of such Act as it existed be-
fore enactment of the Cranston-Gonzalez Na-
tional Affordable Housing Act of 1990); (C) a
regulatory agreement or such other form of reg-
ulatory control as may be imposed by the Sec-
retary that applies to mortgages insured or held
by the Secretary under section 542 of the
Housing and Community Development Act of
1992, but not reinsured under section 542 of
the Housing and Community Development Act
of 1992; or (D)’’; and
(B) in the second sentence, by inserting
after ‘‘agreement’’ the following: ‘‘, or such
other form of regulatory control as may be im-
posed by the Secretary,’’;
(2) in subsection (a)(2), by inserting after
‘‘Act,’’ the following: ‘‘under section 202 of the
Housing Act of 1959 (including section 202 of such
Act as it existed before enactment of the Cranston-
Gonzalez National Affordable Housing Act of 1990)
and under section 542 of the Housing and Commu-
nity Development Act of 1992,’’;
114
(3) in subsection (b), by inserting after ‘‘agree-
ment’’ the following: ‘‘, or such other form of regu-
latory control as may be imposed by the Secretary,’’;
(4) in subsection (c)—
(A) in the first sentence, by inserting after
‘‘agreement’’ the following: ‘‘, or such other
form of regulatory control as may be imposed
by the Secretary,’’; and
(B) in the second sentence, by inserting
before the period the following: ‘‘or under the
Housing Act of 1959, as appropriate’’; and
(5) in subsection (d), by inserting after ‘‘agree-
ment’’ the following: ‘‘, or such other form of regu-
latory control as may be imposed by the Secretary,’’.
SEC. 324. OBSTRUCTION OF FEDERAL AUDITS.
Section 1516(a) of title 18, United States Code, is
amended by inserting after ‘‘under a contract or sub-
contract,’’ the following: ‘‘or relating to any property that
is security for a mortgage note that is insured, guaran-
teed, acquired, or held by the Secretary of Housing and
Urban Development pursuant to any Act administered by
the Secretary,’’.
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