DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFORM ACT OF 1989 (Sections 102, 701, and 801)
Public Law 101–235
103 Stat. 1987
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFORM ACT OF 1989 (Sections 102, 701, and 801)
235
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
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Department of Housing and Urban Development Reform Act of 1989
HUD Reform Act
10635
101
1989-12-15
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFORM ACT OF 1989 (Sections 102, 701, and 801)
[Public Law 101–235; 103 Stat. 1987; 42 U.S.C. 1437f note]
[Currency: This publication is a compilation of the text of Public Law 101–235. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
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<num style="-uslm-dtd:enum" value="I">TITLE I—</num><heading style="-uslm-dtd:header">REFORMS TO DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT </heading>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
<section style="-uslm-dtd:section" identifier="/us/sComp/101/235/tI/s102" styleType="OLC">
<num style="-uslm-dtd:enum" value="102">SEC. 102. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s3545">42 U.S.C. 3545</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">HUD ACCOUNTABILITY. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Notice Regarding Assistance.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/a/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Publication of notice of availability.—</heading><content style="-uslm-dtd:text">The Secretary shall publish in the Federal Register notice of the availability of any assistance under any program or discretionary fund administered by the Secretary.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/a/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Publication of application procedures.—</heading><content style="-uslm-dtd:text">The Secretary shall publish in the Federal Register a description of the form and procedures by which application for the assistance may be made, and any deadlines relating to the award or allocation of the assistance. Such description shall be designed to help eligible applicants to apply for such assistance.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/a/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Publication of selection criteria.—</heading><content style="-uslm-dtd:text">Not less than 30 days before any deadline by which applications or requests for assistance under any program or discretionary fund administered by the Secretary must be submitted, the Secretary shall publish in the Federal Register the criteria by which selection for the assistance will be made. Subject to section 213 of the Housing and Community Development Act of 1974, such criteria shall include any objective measures of housing need, project merit, or efficient use of resources that the Secretary determines are appropriate and consistent with the statute under which the assistance is made available.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/a/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Documentation of decisions.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/a/4/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">The Secretary shall award or allocate assistance only in response to a written application in a form approved in advance by the Secretary, except where other award or allocation procedures are specified in statute.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/a/4/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><chapeau style="-uslm-dtd:text">The Secretary shall ensure that documentation and other information regarding each application for assistance is sufficient to indicate the basis on which any award or allocation was made or denied. The preceding sentence shall apply to—</chapeau>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/101/235/tI/s102/a/4/B/i" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">any application for an award or allocation of assistance made by the Secretary to a State, unit of general local government, or other recipient of assistance, and</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/101/235/tI/s102/a/4/B/ii" styleType="OLC">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">any application for a subsequent award or allocation of such assistance by such State, unit of general local government or other recipient.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/a/4/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C)</num><clause style="-uslm-dtd:clause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="i">(i) </num><chapeau style="-uslm-dtd:text">The Secretary shall notify the public of all funding decisions made by the Department. The Secretary shall require any State or unit of general local government to notify the public of the award or allocation of such funding to subsequent recipients. The notification shall include the following elements for each funding decision:</chapeau>
<subclause style="-uslm-dtd:subclause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i/I" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">the name and address of each funding recipient;</content>
</subclause>
<subclause style="-uslm-dtd:subclause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i/II" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">the name or other means of identifying the project, activity, or undertaking for each funding recipient;</content>
</subclause>
<subclause style="-uslm-dtd:subclause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i/III" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="III">(III) </num><content style="-uslm-dtd:text">the dollar amount of the funding for each project, activity, or undertaking;</content>
</subclause>
<subclause style="-uslm-dtd:subclause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i/IV" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="IV">(IV) </num><content style="-uslm-dtd:text">the citation to the statutory, regulatory, or other criteria under which the funding decision was made; and</content>
</subclause>
<subclause style="-uslm-dtd:subclause" identifier="/us/sComp/101/235/tI/s102/a/4/C/i/V" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="V">(V) </num><content style="-uslm-dtd:text">such additional information as the Secretary deems appropriate for a clear and full understanding of the funding decision.</content>
</subclause></clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/101/235/tI/s102/a/4/C/ii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">The notification referred to in clause (i) of this subsection shall be published as a Notice in the Federal Register at least quarterly.</content>
</clause>
<clause style="-uslm-dtd:clause" identifier="/us/sComp/101/235/tI/s102/a/4/C/iii" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">For purposes of this subparagraph, the term “<term style="-uslm-dtd:term">funding decision</term>” means the decision of the Secretary to make available grants, loans, or any other form of financial assistance to an individual or to an entity, including (but not limited to) a State or local government or agency thereof (including a public housing agency), an Indian tribe, or a nonprofit organization, under any program administered by the Department that provides, by statute, regulation, or otherwise, for the competitive distribution of financial assistance.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/a/4/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">The Secretary shall publish a notice in the Federal Register at least annually informing the public of the allocation of assistance under section 213(d)(1)(A) of the Housing and Community Development Act of 1974.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/a/4/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">The Secretary shall ensure that each application and all related documentation and other information referred to in subparagraph (B), including each letter of support, is readily available for public inspection for a period of not less than 5 years, beginning not less than 30 days following the date on which the award or allocation is made.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/a/5" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Emergency exception.—</heading><content style="-uslm-dtd:text">The Secretary may waive the requirements of paragraphs (1), (2), and (3) if the Secretary determines that the waiver is required for appropriate response to an emergency. Not less than 30 days after providing a waiver under the preceding sentence, the Secretary shall publish in the Federal Register the Secretary's reasons for so doing.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Disclosures by Applicants.—</heading><chapeau style="-uslm-dtd:text">The Secretary shall require the disclosure of information with respect to any application for assistance within the jurisdiction of the Department for a project application submitted to the Secretary or to any State or unit of general local government by any applicant who has received or, in the determination of the Secretary, can reasonably be expected to receive assistance within the jurisdiction of the Department in excess of $200,000 in the aggregate during any fiscal year or such lower amount as the Secretary may establish by regulation. Such information shall include the following:</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Other government assistance.—</heading><content style="-uslm-dtd:text">Information regarding any related assistance from the Federal Government, a State, or a unit of general local government, or any agency or instrumentality thereof, that is expected to be made available with respect to the project or activities for which the applicant is seeking assistance. Such related assistance shall include but not be limited to any loan, grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Interested parties.—</heading><content style="-uslm-dtd:text">The name and pecuniary interest of any person who has a pecuniary interest in the project or activities for which the applicant is seeking assistance. Persons with a pecuniary interest in the project or activity shall include but not be limited to any developers, contractors, and consultants involved in the application for assistance or the planning, development, or implementation of the project or activity. For purposes of this paragraph, residency of an individual in housing for which assistance is being sought shall not, by itself, be considered a pecuniary interest.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/b/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Expected sources and uses.—</heading><content style="-uslm-dtd:text">A report satisfactory to the Secretary of the expected sources and uses of funds that are to be made available for the project or activity.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Updating of Disclosure.—</heading><content style="-uslm-dtd:text">During the period when an application is pending or assistance is being provided, the applicant shall update the disclosure required under the previous subsection within 30 days of any substantial change.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Limitation of Assistance.—</heading><content style="-uslm-dtd:text">The Secretary shall certify that assistance within the jurisdiction of the Department, as such term is defined in subsection (m), except that for purposes of this subsection such term shall not include any mortgage insurance provided pursuant to title II of the National Housing Act (12 U.S.C. 1707 et seq.)<ref style="-uslm-dtd:footnote-ref" idref="ID0E58C9E63376481EAB5ED239A8B0DE70" class="footnoteRef">1</ref> to any housing project shall not be more than is necessary to provide affordable housing after taking account of assistance described in subsection (b)(1). The Secretary shall adjust the amount of such assistance awarded or allocated to an applicant to compensate in whole or in part, as the Secretary determines to be appropriate, for any changes reported under subsection (c).<ref style="-uslm-dtd:footnote-ref" idref="ID8E2542194DA34C309E149B059EFCF5AB" class="footnoteRef">2</ref></content><footnote id="ID0E58C9E63376481EAB5ED239A8B0DE70" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">1</sup><p style="-uslm-dtd:para; margin-left:1em">So in law. Probably should be a comma.</p></footnote><footnote id="ID8E2542194DA34C309E149B059EFCF5AB" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">2</sup><p style="-uslm-dtd:para; margin-left:1em">See section 911 of the Housing and Community Development Act of 1992, Pub. L. 102–550, which is set forth, <i style="-uslm-dtd:italic">post</i>, this part.</p></footnote>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/e" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Administrative Remedies.—</heading><chapeau style="-uslm-dtd:text">If the Secretary receives or obtains information providing a reasonable basis to believe that a violation of subsection (b) or (c) has occurred, the Secretary shall—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/e/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">in the case of a selection that has not been made, determine whether to terminate the selection process or take other appropriate actions; and</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/e/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><chapeau style="-uslm-dtd:text">in the case of a selection that has been made, determine whether to—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/e/2/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">void or rescind the selection, subject to review and determination on the record after opportunity for a hearing;</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/e/2/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">impose sanctions upon the violator, including debarment, subject to review and determination on the record after opportunity for a hearing;</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/e/2/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">recapture any funds that have been disbursed;</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/e/2/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">permit the violating applicant selected to continue to participate in the program; or</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/e/2/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">take any other actions that the Secretary considers appropriate.</content>
</subparagraph>
</paragraph><continuation style="-uslm-dtd:continuation-text" role="subsection">The Secretary shall publish in the Federal Register a descriptive statement of each determination made and action taken under this subsection.</continuation>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/f" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">(f) </num><heading style="-uslm-dtd:header">Civil Money Penalties.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/f/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Whenever any person knowingly and materially violates any provision of subsection (b) or (c), the Secretary may impose a civil money penalty on that person in accordance with the provisions of this section. This penalty shall be in addition to any other available civil remedy or any available criminal penalty, and may be imposed whether or not the Secretary imposes other administrative sanctions.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/f/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Amount of penalty.—</heading><content style="-uslm-dtd:text">The amount of the penalty, as determined by the Secretary, may not exceed $10,000 for each violation.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/g" styleType="OLC">
<num style="-uslm-dtd:enum" value="g">(g) </num><heading style="-uslm-dtd:header">Agency Procedures.—</heading><paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/g/1" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="1">(1) </num><chapeau style="-uslm-dtd:text">The Secretary shall establish standards and procedures governing the imposition of civil money penalties under subsection (f). These standards and procedures—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/g/1/A" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">shall provide for the Secretary to make the determination to impose the penalty or to use an administrative entity to make the determination;</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/g/1/B" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">shall provide for the imposition of a penalty only after the person has been given an opportunity for a hearing on the record; and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tI/s102/g/1/C" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">may provide for review by the Secretary of any determination or order, or interlocutory ruling, arising from a hearing.</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">If no hearing is requested within 15 days of receipt of the notice of opportunity for hearing, the imposition of the penalty shall constitute a final and unappealable determination. If the Secretary reviews the determination or order, the Secretary may affirm, modify, or reverse that determination or order. If the Secretary does not review the determination or order, the determination or order shall be final.</continuation></paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/g/2" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Factors in Determining Amount of Penalty.—</heading><content style="-uslm-dtd:text">In determining the amount of a penalty under subsection (f), consideration shall be given to such factors as the gravity of the offense, ability to pay the penalty, injury to the public, benefits received, deterrence of future violations, and such other factors as the Secretary may determine in regulations to be appropriate.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/g/3" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Reviewability of Imposition of a Penalty.—</heading><content style="-uslm-dtd:text">The Secretary's determination or order imposing a penalty under subsection (f) shall not be subject to review, except as provided in subsection (h).</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/h" styleType="OLC">
<num style="-uslm-dtd:enum" value="h">(h) </num><heading style="-uslm-dtd:header">Judicial Review of Agency Determination.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/h/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">After exhausting all administrative remedies established by the Secretary under subsection (g)(1), a person against whom the Secretary has imposed a civil money penalty under subsection (f) may obtain a review of the penalty and such ancillary issues as may be addressed in the notice of determination to impose a penalty under subsection (g)(1)(A) in the appropriate court of appeals of the United States, by filing in such court, within 20 days after the entry of such order or determination, a written petition praying that the order or determination of the Secretary be modified or be set aside in whole or in part.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/h/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Objections not raised in hearing.—</heading><content style="-uslm-dtd:text">The court shall not consider any objection that was not raised in the hearing conducted pursuant to subsection (g)(1) unless a demonstration is made of extraordinary circumstances causing the failure to raise the objection. If any party demonstrates to the satisfaction of the court that additional evidence not presented at the hearing is material and that there were reasonable grounds for the failure to present such evidence at the hearing, the court shall remand the matter to the Secretary for consideration of such additional evidence.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/h/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Scope of review.—</heading><content style="-uslm-dtd:text">The decisions, findings, and determinations of the Secretary shall be reviewed pursuant to section 706 of title 5, United States Code.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/h/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Order to pay penalty.—</heading><content style="-uslm-dtd:text">Notwithstanding any other provision of law, in any such review, the court shall have the power to order payment of the penalty imposed by the Secretary.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/i" styleType="OLC">
<num style="-uslm-dtd:enum" value="i">(i) </num><heading style="-uslm-dtd:header">Action To Collect the Penalty.—</heading><content style="-uslm-dtd:text">If any person fails to comply with the determination or order of the Secretary imposing a civil money penalty under subsection (f), after the determination or order is no longer subject to review as provided by subsections (g)(1) and (h), 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 monetary judgment against the person and such other relief as may be available. The monetary judgment may, in the court's discretion, include the attorneys' fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the Secretary's determination or order imposing the penalty shall not be subject to review.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/j" styleType="OLC">
<num style="-uslm-dtd:enum" value="j">(j) </num><heading style="-uslm-dtd:header">Settlement by the Secretary.—</heading><content style="-uslm-dtd:text">The Secretary may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/k" styleType="OLC">
<num style="-uslm-dtd:enum" value="k">(k) </num><heading style="-uslm-dtd:header">Regulations.—</heading><content style="-uslm-dtd:text">The Secretary shall issue such regulations as the Secretary deems appropriate to implement this section.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/l" styleType="OLC">
<num style="-uslm-dtd:enum" value="l">(l) </num><heading style="-uslm-dtd:header">Deposit of Penalties.—</heading><content style="-uslm-dtd:text">The Secretary shall deposit all civil money penalties collected under this section into miscellaneous receipts of the Treasury.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/m" styleType="OLC">
<num style="-uslm-dtd:enum" value="m">(m) </num><heading style="-uslm-dtd:header">Definitions.—</heading><chapeau style="-uslm-dtd:text">For the purpose of this section—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/m/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">Department</term>” means the Department of Housing and Urban Development.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/m/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">Secretary</term>” means the Secretary of Housing and Urban Development.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/m/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">person</term>” means an individual (including a consultant, lobbyist, or lawyer), corporation, company, association, authority, firm, partnership, society, State, local government, or any other organization or group of people.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/m/4" styleType="OLC">
<num style="-uslm-dtd:enum" value="4">(4) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">assistance within the jurisdiction of the Department</term>” includes any contract, grant, loan, cooperative agreement, or other form of assistance, including the insurance or guarantee of a loan, mortgage, or pool of mortgages.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tI/s102/m/5" styleType="OLC">
<num style="-uslm-dtd:enum" value="5">(5) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">knowingly</term>” means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tI/s102/n" styleType="OLC">
<num style="-uslm-dtd:enum" value="n">(n) </num><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">This section shall take effect on the date specified in regulations implementing this section that are issued by the Secretary after notice and public comment.</content>
</subsection>
</section>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
<num style="-uslm-dtd:enum" value="VII">TITLE VII—</num><heading style="-uslm-dtd:header">MISCELLANEOUS </heading>
<section style="-uslm-dtd:section" identifier="/us/sComp/101/235/tVII/s701" styleType="OLC">
<num style="-uslm-dtd:enum" value="701">SEC. 701. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s1452c">42 U.S.C. 1452c</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">NULLIFICATION OF RIGHT OF REDEMPTION OF SINGLE FAMILY MORTGAGORS UNDER SECTION 312 REHABILITATION LOAN PROGRAM. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVII/s701/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In General.—</heading><content style="-uslm-dtd:text">Whenever with respect to a single family mortgage securing a loan under section 312 of the Housing Act of 1964<ref style="-uslm-dtd:footnote-ref" idref="ID0D905FB397BC455FAE62B24A7B2FA022" class="footnoteRef">3</ref>, the Secretary of Housing and Urban Development or its foreclosure agent forecloses in any Federal or State court or pursuant to a power of sale in a mortgage, the purchaser at the foreclosure sale shall be entitled to receive a conveyance of title to, and possession of, the property, subject to any interests senior to the interests of the Secretary. With respect to properties that are vacant and abandoned, notwithstanding any State law to the contrary, there shall be no right of redemption (including all instances any right to possession based upon any right of redemption) in the mortgagor or any other person subsequent to the foreclosure sale in connection with such single family mortgage. The appropriate State official or the trustee, as the case may be, shall execute and deliver a deed or other appropriate instrument conveying title to the purchaser at the foreclosure sale, consistent with applicable procedures in the jurisdiction and without regard to any such right of redemption.</content><footnote id="ID0D905FB397BC455FAE62B24A7B2FA022" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">3</sup><p style="-uslm-dtd:para; margin-left:1em">Section 289(a) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101–625, 104 Stat. 4128, set forth, <i style="-uslm-dtd:italic">post</i>, in part IV of this compilation, provides that no new loans shall be made under section 312 of the Housing Act of 1964 after October 1, 1991. Section 289(b) of such Act repealed such section 312, effective on October 1, 1991.</p></footnote>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVII/s701/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Foreclosure by Others.—</heading><content style="-uslm-dtd:text">Whenever with respect to a single family mortgage on a property that also has a single family mortgage securing a loan under section 312 of the Housing Act of 1964, a mortgagee forecloses in any Federal or State court or pursuant to a power of sale in a mortgage, the Secretary of Housing and Urban Development, if the Secretary is purchaser at the foreclosure sale, shall be entitled to receive a conveyance of title to, and possession of, the property, subject to the interests senior to the interests of the mortgagee. Notwithstanding any State law to the contrary, there shall be no right of redemption (including in all instances any right to possession based upon any right of redemption) if the mortgagor or any other person subsequent to the foreclosure sale to the Secretary in connection with a property that secured a single family mortgage for a loan under section 312 of the Housing Act of 1964. The appropriate State official or the trustee, as the case may be, shall execute and deliver a deed or other appropriate instrument conveying title to the Secretary, who is the purchaser at the foreclosure sale, consistent with applicable procedures in the jurisdiction and without regard to any such right of redemption.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVII/s701/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Verification of Title.—</heading><chapeau style="-uslm-dtd:text">The following actions shall be taken in order to verify title to the purchaser at the foreclosure sale:</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVII/s701/c/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">In the case of a judicial foreclosure in any Federal or State court, there shall be included in the petition and in the judgment of foreclosure a statement that the foreclosure is in accordance with this subsection and that there is no right of redemption in the mortgagor or any other person.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVII/s701/c/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">In the case of a foreclosure pursuant to a power of sale provision in the mortgage, the statement required in paragraph (1) shall be included in the advertisement of the sale and either in the recitals of the deed or other appropriate instrument conveying title to the purchaser at the foreclosure sale or in an affidavit or addendum to the deed.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVII/s701/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Definitions.—</heading><chapeau style="-uslm-dtd:text">For purposes of this section:</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVII/s701/d/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">mortgage</term>” means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the payment of money or the performance of an obligation.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVII/s701/d/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">The term “<term style="-uslm-dtd:term">single family mortgage</term>” means a mortgage that covers property that includes a 1- to 4-family residence.</content>
</paragraph>
</subsection>
</section>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
<num style="-uslm-dtd:enum" value="VIII">TITLE VIII—</num><heading style="-uslm-dtd:header">SECTION 8 RENT ADJUSTMENTS </heading>
<section style="-uslm-dtd:section" identifier="/us/sComp/101/235/tVIII/s801" styleType="OLC">
<num style="-uslm-dtd:enum" value="801">SEC. 801. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s1437f">42 U.S.C. 1437f note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">ANNUAL ADJUSTMENT FACTORS FOR SECTION 8 RENTS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Effect of Prior Comparability Studies.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVIII/s801/a/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">In any case in which, in implementing section 8(c)(2) of the United States Housing Act of 1937—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/a/1/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">the use of comparability studies by the Secretary of Housing and Urban Development or the appropriate State agency as an independent limitation on the amount of rental adjustments resulting from the application of an annual adjustment factor under such section has resulted in the reduction of the maximum monthly rent for units covered by the contract or the failure to increase such contract rent to the full amount otherwise permitted under the annual adjustment factor, or</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/a/1/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">an assistance contract requires a project owner to make a request before becoming eligible for a rent adjustment under the annual adjustment factor and the project owner certifies that such a request was not made because of anticipated negative adjustment to the project rents,</content>
</subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">for fiscal year 1980, and annually thereafter until regulations implementing this section take effect, rental adjustments shall be calculated as an amount equal to the annual adjustment factor multiplied by a figure equal to the contract rent minus the amount of contract rent attributable to debt service. Upon the request of the project owner, the Secretary shall pay to the project owner the amount, if any, by which the total rental adjustment calculated under the preceding sentence exceeds the total adjustments the Secretary or appropriate State agency actually approved, except that solely for purposes of calculating retroactive payments under this subsection, in no event shall any project owner be paid an amount less than 30 percent of a figure equal to the aggregate of the annual adjustment factor multiplied by the full contract rent for each year on or after fiscal year 1980, minus the sum of the rental payments the Secretary or appropriate State agency actually approved for those years. The method provided by this subsection shall be the exclusive method by which retroactive payments, whether or not requested, may be made for projects subject to this subsection for the period from fiscal year 1980 until the regulations issued under subsection (e) take effect. For purposes of this paragraph, “<quotedText style="-uslm-dtd:quote">debt service</quotedText>” shall include interest, principal, and mortgage insurance premium if any.</continuation>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVIII/s801/a/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Applicability.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/a/2/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Subsection (a) shall apply with respect to any use of comparability studies referred to in such subsection occurring before the effective date of the regulations issued under subsection (e).</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/a/2/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Final litigation.—</heading><content style="-uslm-dtd:text">Subsection (a) shall not apply to any project with respect to which litigation regarding the authority of the Secretary to use comparability studies to limit rental adjustments under section 8(c)(2) of the United State Housing Act of 1937 has resulted in a judgment before the effective date of this Act<ref style="-uslm-dtd:footnote-ref" idref="ID48DD2FBFF9954049A0367F06E1A1264B" class="footnoteRef">4</ref> that is final and not appealable (including any settlement agreement).</content><footnote id="ID48DD2FBFF9954049A0367F06E1A1264B" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">4</sup><p style="-uslm-dtd:para; margin-left:1em">The date of enactment was December 15, 1989.</p></footnote>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">
<inline style="-uslm-dtd:enum-in-header">3-</inline>Year Payments.—</heading><content style="-uslm-dtd:text">The Secretary shall provide the amounts under subsection (a) over the 3-year period beginning on the effective date of the regulations issued under subsection (e). The Secretary shall provide the payments authorized under subsection (a) only to the extent approved in subsequent appropriations Acts. There are authorized to be appropriated such sums as may be necessary for this purpose.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Comparability Studies.—</heading><content style="-uslm-dtd:text">Section 8(c)(2)(C) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(C) is amended by inserting after the period at the end of the first sentence the following: <elided style="-uslm-dtd:omitted-text">* * *</elided></content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Determination of Contract Rent.—</heading><paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVIII/s801/d/1" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="1">(1) </num><chapeau style="-uslm-dtd:text">The Secretary shall upon the request of the project owner, make a one-time determination of the contract rent for each project owner referred to in subsection (a). The contract rent shall be the greater of the contract rent—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/d/1/A" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">currently approved by the Secretary under section 8(c)(2) of the United States Housing Act of 1937, or</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/101/235/tVIII/s801/d/1/B" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">calculated in accordance with the first sentence of subsection (a)(1).</content>
</subparagraph></paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/101/235/tVIII/s801/d/2" styleType="OLC" class="leftIndentDecrease1">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">All adjustments in contract rents under section 8(c)(2) of the United States Housing Act of 1937, including adjustments involving projects referred to in subsection (a), that occur beginning with the first anniversary date of the contract after the regulations issued under subsection (e) take effect shall be made in accordance with the annual adjustment and comparability provisions of sections (8)(c)(2)(A) and 8(c)(2)(C) of such Act, respectively, using the one-time contract rent determination under paragraph (1).</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/e" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Regulations.—</heading><content style="-uslm-dtd:text">The Secretary shall issue regulations to carry out this section and the amendments made by this section, including the amendments made by subsection (c) with regard to annual adjustment factors and comparability studies. The Secretary shall issue such regulations not later than the expiration of the 180-day period beginning on the date of the enactment of this Act.<ref style="-uslm-dtd:dangling-footnote-ref" class="footnoteRef">4</ref></content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/f" styleType="OLC">
<num style="-uslm-dtd:enum" value="f">(f) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">Not later than March 1, 1990, the Secretary shall report to the Congress on the feasibility and desirability, and the budgetary, legal, and administrative aspects, of adjusting contract rents under section 8(c)(2)(C) of the United States Housing Act of 1937 on the basis of any alternative methodologies that are simpler in application than individual project comparability studies.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/101/235/tVIII/s801/g" styleType="OLC">
<num style="-uslm-dtd:enum" value="g">(g) </num><heading style="-uslm-dtd:header">Technical Amendment.—</heading><content style="-uslm-dtd:text">The first sentence of section 8(c)(2)(C) of the United States Housing Act of 1937 is amended by inserting <elided style="-uslm-dtd:omitted-text">* * *</elided></content>
</subsection>
</section>