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‘‘(h) DEFINITIONS.—For the purposes of this sec-
tion—
‘‘(1) the term ‘agent employed to manage such
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.
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(c) IMPLEMENTATION.—
(1) REGULATIONS.—The Secretary shall imple-
ment the amendments made by this section by regu-
lation issued after notice and opportunity for public
comment. The notice shall seek comments as to the
definitions of the terms ‘‘ownership interest 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 one year from the date of enactment
of this Act.
SEC. 22. EXTENSION OF DOUBLE DAMAGES REMEDY.
Section 421 of the Housing and Community Develop-
ment Act of 1987 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
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-
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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)’’;
(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,’’;
(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)—
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(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. 23. 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’’.
SEC. 24. DISPOSITION OF AMOUNTS UNDER THE PROGRAM
FRAUD CIVIL REMEDIES ACT.
Section 3806(g)(2) of title 31, United States Code,
is amended by adding at the end the following new sub-
paragraphs:
‘‘(F) Any amount of a penalty or assessment
imposed by the Secretary of Housing and Urban De-
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velopment under this chapter with respect to a claim
or statement made in connection with the mortgage
and loan insurance functions of the Secretary under
the National Housing Act shall be deposited in the
appropriate Insurance Fund established under that
Act.
‘‘(G) Any amount of a penalty or assessment
imposed by the Secretary of Housing and Urban De-
velopment under this chapter with respect to a claim
or statement made in connection with the guarantee
functions of the Secretary under title III of the Na-
tional Housing Act shall be deposited in the account
of the Government National Mortgage Association
with the United States Treasury.’’.
SEC. 25. EXTENSION OF ACCESS TO RECORDS TO PREVENT
FRAUD AND ABUSE.
Section 303(i)(5) of the Social Security Act is hereby
repealed.
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