[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38931-38936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14060]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 28, 30, 87, 180, and 3282

[Docket No. FR-5942-I-01]
RIN 2501-AD79


Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts

AGENCY: Office of the General Counsel, HUD.

ACTION: Interim final rule.

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SUMMARY: This interim final rule amends HUD's civil monetary penalty 
regulations by making inflation adjustments as mandated by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015. HUD 
also removes three obsolete civil monetary penalty regulations 
previously authorized under statutes for which either HUD no longer has 
enforcement authority or the program is no longer active. Lastly, HUD 
makes a technical change to the regulation language implementing the 
Program Fraud Civil Remedies Act which, due to a typographical error 
under the last civil money penalty adjustment, failed to include 
language assigning a penalty for causing a false claim or statement to 
be made.

DATES: Effective date: August 16, 2016. Comment due date: August 15, 
2016.

ADDRESSES: Interested persons are invited to submit comments regarding 
this interim final rule. Communications must refer to the above docket 
number and title. There are two methods for submitting public comments. 
All

[[Page 38932]]

submissions must refer to the above docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m., weekdays, at 
the above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at 202-402-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number via TTY by calling the Federal Relay Service, 
toll-free, at 800-877-8339. Copies of all comments submitted are 
available for inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General 
Counsel, Office of Program Enforcement, Department of Housing and Urban 
Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; 
telephone number 202-245-4141 (this is not a toll-free number). 
Hearing- or speech-impaired individuals may access this number via TTY 
by calling the toll-free Federal Information Relay Service at 800-877-
8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 
2015 Act), which further amended the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (the Inflation Adjustment Act), to improve the 
effectiveness of civil monetary penalties and to maintain their 
deterrent effect. The 2015 Act requires agencies to: (1) Adjust the 
level of civil monetary penalties with an initial ``catch-up'' 
adjustment through an interim final rulemaking (IFR); and (2) make 
subsequent annual adjustments for inflation.
    Previously, the Inflation Adjustment Act required agencies to 
adjust CMP levels every four years based on the percentage by which the 
Consumer Price Index (CPI) for the month of June of the prior calendar 
year exceeded the CPI for the month of June of the calendar year during 
which the last adjustment was made. The Inflation Adjustment Act also 
capped the increase for each adjustment at 10 percent and rounded the 
adjustment based on the size of the penalty (e.g., multiple of $10 in 
the case of penalties less than or equal to $100). The rounding process 
meant that penalties would often not be increased at all if the 
inflation factor was not large enough. Furthermore, the cap on 
increases of 10 percent in tandem with the rounding meant that the 
formula over time caused penalties to lose value relative to total 
inflation. The 2015 Act updates these requirements by prescribing that 
agencies make annual adjustments for inflation based on the CPI for the 
month of October and round to the nearest dollar after an initial 
adjustment.
    In order to eliminate the inconsistent changes caused by the prior 
method, the 2015 Act resets the inflation adjustment by excluding prior 
inflationary adjustments under the Inflation Adjustment Act, which 
contributed to a decline in the real value of penalty levels. To do 
this, the 2015 Act provides that the initial adjustment shall be the 
percentage by which the CPI for the month of October, 2015 exceeds that 
of the month of October of the calendar year during which the amount of 
the CMP was originally established or otherwise adjusted under a 
provision of law other than the Inflation Adjustment Act. While the 
2015 Act does not provide a cap on adjustments going forward, the 
initial adjustment under the 2015 Act does limit large CMP increases by 
providing that no initial adjustments may exceed 150 percent of the 
amount of the CMP as of the date the 2015 Act was enacted, November 2, 
2015. Lastly, the 2015 Act requires that agencies publish an interim 
final rule with the initial adjustment by July 1, 2016, and have the 
adjustments take effect no later than August 1, 2016. The initial 
adjustment under the 2015 Act also provides that, following public 
comment, the head of an agency may reduce the required increase if the 
agency head determines that the increase will have a negative economic 
impact or the social costs of the increase outweigh the benefits; and 
the Director of the Office of Management and Budget concurs.

II. This Interim Final Rule

A. Inflation Adjustment of Civil Monetary Penalty Amounts

    For each component, HUD provides a table showing how the penalties 
are being increased pursuant to the 2015 Act. In the first column, HUD 
provides a description of the penalty. In the second column 
(``Citation,'') HUD provides the United States Code (U.S.C.) statutory 
citation providing for the penalty. In the third column (``Original 
Amount''), HUD provides the amount of the penalty as originally enacted 
by Congress or changed through a mechanism other than pursuant to the 
Inflation Adjustment Act. In the fourth column (``Regulatory 
Citation''), HUD lists the regulatory citation in the current Code of 
Federal Regulations (CFR) where the most recently amended penalty is 
codified. In the fifth column (``Current Amount''), HUD lists the 
existing penalty in the CFR. In the sixth column, (``New Amount'') HUD 
lists the penalty after disregarding adjustments under the Inflation 
Adjustment Act and applying the 2015 Act formula and cap for the first 
adjustment.

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                                                                                            Regulatory
            Description                        Citation               Original amount        citation         Current amount            New amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
False Claims & Statements..........  Omnibus Budget               $5,000................    Sec.   28.10  $8,500................  $10,781.
                                      Reconciliation Act of 1986
                                      (31 U.S.C. 3802(a)(1)).

[[Page 38933]]

 
Advance Disclosure of Funding......  Department of Housing and    $10,000...............    Sec.   30.20  $16,000...............  $18,936.
                                      Urban Development Act (42
                                      U.S.C. 3537a(c)).
Disclosure of Subsidy Layering.....  Department of Housing and    $10,000...............    Sec.   30.25  $16,000...............  $18,936.
                                      Urban Development Act (42
                                      U.S.C. 3545(f)).
FHA Mortgagees and Lenders           HUD Reform Act of 1989 (12   Per Violation: $5,000     Sec.   30.35  Per Violation: $8,500   Per Violation: $9,468
 Violations.                          U.S.C. 1735f-14(a)(2)).      Per Year: $1,000,000.                   Per Year: $1,525,000.   Per Year: $1,893,610.
Other FHA Participants Violations..  HUD Reform Act of 1989 (12   Per Violation: $5,000     Sec.   30.36  Per Violation: $7,050   Per Violation: $9,468
                                      U.S.C. 1735f-14(a)(2)).      Per Year: $1,000,000.                   Per Year: $1,335,000.   Per Year: $1,893,610.
Indian Loan Mortgagees Violations..  Housing Community            Per Violation: $5,000     Sec.   30.40  Per Violation: $8,000   Per Violation: $9,468
                                      Development Act of 1992      Per Year: $1,000,000.                   Per Year: $1,525,000.   Per Year: $1,893,610.
                                      \1\ (12 U.S.C. 1715z-
                                      13a(g)(2)).
Multifamily & Section 202 or 811     HUD Reform Act of 1989 (12   $25,000...............    Sec.   30.45  $42,500...............  $47,340.
 Owners Violations.                   U.S.C. 1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians      HUD Reform Act of 1989 (12   Per Violation: $5,000     Sec.   30.50  Per Violation: $8,500   Per Violation: $9,468
 Violations.                          U.S.C. 1723i(b)).            Per Year: $1,000,000.                   Per Year: $1,525,000.   Per Year: $1,893,610.
Title I Broker & Dealers Violations  HUD Reform Act of 1989 (12   Per Violation: $5,000     Sec.   30.60  Per Violation: $8,500   Per Violation: $9,468
                                      U.S.C. 1703).                Per Year: $1,000,000.                   Per Year: $1,525,000.   Per Year: $1,893,610.
Lead Disclosure Violation..........  Title X-Residential Lead-    $10,000...............    Sec.   30.65  $16,000...............  $16,773.
                                      Based Paint Hazard
                                      Reduction Act of 1992 (42
                                      U.S.C. 4852d(b)(1)).
Section 8 Owners Violations........  Multifamily Assisted         $25,000...............    Sec.   30.68  $27,500...............  $36,794.
                                      Housing Reform and
                                      Affordability Act of 1997
                                      (42 U.S.C. 1437z-1(b)(2)).
Lobbying Violation.................  The Lobbying Disclosure Act  Min: $10,000 Max:        Sec.   87.400  Min: $10,000 Max:       Min: $18,936 Max:
                                      of 1995 (31 U.S.C. 1352).    $100,000.                               $100,000.               $189,361.
Fair Housing Act Civil Penalties...  Fair Housing Amendments Act  No Priors: $10,000 One            Sec.  No Priors: $16,000 One  No Priors: $19,787 One
                                      of 1988 (42 U.S.C.           Prior: $25,000 Two or      180.671(a)   Prior: $42,500 Two or   Prior: $49,467 Two or
                                      3612(g)(3)).                 More Priors: $50,000.                   More Priors: $70,000.   More Priors: $98,935.
Manufactured Housing Regulations     Housing Community            Per Violation: $1,000   Sec.   3282.10  Per Violation: $1,100   Per Violation: $2,750
 Violation.                           Development Act of 1974      Per Year: $1,000,000.                   Per Year: $1,375,000.   Per Year: $3,437,500.
                                      (42 U.S.C. 5410).
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B. Correction to 24 CFR 28.10

    In addition to applying the catch-up adjustment as required by the 
2015 Act, HUD takes the opportunity to issue a technical correction to 
Sec.  28.10. On January 18, 2013, HUD published a final rule (78 FR 
4059) to apply a routine inflationary adjustment to CMPs under Sec.  
28.10, the regulation implementing the Program Fraud Civil Remedies 
Act, 31 U.S.C. 3802. Due to a typographical error, the final rule 
assigned a penalty for making a false claim or statement, but not for 
causing such claim or statement to be made. Liability is provided for 
both bases under 31 U.S.C. 3802, as well as under the version of Sec.  
28.10 that predated the 2013 rulemaking (See 73 FR 76831, Dec. 17, 
2008), and the 2013 final rule was intended only to adjust the penalty 
amount, not to remove a basis for liability. As such, the bases for 
liability enumerated in Sec.  28.10 are incomplete. Through this 
technical correction, HUD can ensure Sec.  28.10 fully implements the 
statutory requirements of 31 U.S.C. 3802. Accordingly, HUD amends 
Sec. Sec.  28.10(a), (b), and (c) to reflect statutory liability for 
causing a false claim or statement to be made, as originally intended.
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    \1\ The Housing Community Development Act of 1992 (12 U.S.C. 
1715z-13a(g)(2) incorporated the civil money penalties from section 
536 of the HUD Reform Act of 1989 (12 U.S.C. 1715f-14), and thus the 
year applied for purposes of the 2015 Act adjustment is 1989.
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C. Removal of 24 CFR 30.30, 30.55, and 30.69

    HUD also takes the opportunity to remove from title 24 of the CFR 
two outdated regulations for which HUD no longer has statutory 
enforcement authority, and one regulation for which the HUD program was 
repealed.
    Section 30.30 implements CMPs for violations under the Urban 
Homesteading Program, which was administered by HUD's Office of 
Community Planning and Development and ceased operation due to repeal 
of 12 U.S.C. 1706e on October 1, 1991. Subsequently, HUD removed its 
Urban Homesteading regulation at 24 CFR part 590 (79 FR 51894, Sept. 2, 
2014) but inadvertently retained Sec.  30.30, which is now obsolete.
    Sections 30.55 and 30.69 implement CMPs for violations under the 
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE 
Act) (12 U.S.C. 5101 et seq.) and the Interstate Land Sales Full 
Disclosure Act (ILSFDA) (15 U.S.C. 1701 et seq.), respectively. In 
2011, the Dodd-Frank Act \2\ transferred from HUD to the Consumer 
Financial Protection Bureau (CFPB) all of its prior authority to 
administer, enforce, and otherwise implement the SAFE Act and ILSFDA. 
Accordingly, HUD issued regulations removing 24 CFR part 3400, its SAFE 
Act regulation (79 FR 34225, June 16, 2014), and removed 24 CFR parts 
1710, 1715, and 1720, its ILSFDA regulations (79 FR 34225, June 16, 
2014). Subsequently, CFPB issued its own regulations for these 
statutes.\3\ In the process of updating its regulations, HUD

[[Page 38934]]

inadvertently retained Sec. Sec.  30.55 and 30.69, which are now 
obsolete.
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    \2\ Public Law 111-203, 124 Stat. 1376, approved July 21, 2010.
    \3\ See 12 CFR parts 1007 and 1008 for the SAFE Act, and 12 CFR 
part 1024 for ILSFDA.
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    HUD is now removing Sec. Sec.  30.30, 30.55, and 30.69 from title 
24 of the CFR, as originally intended. The removal of these regulations 
will streamline HUD's regulations and eliminate confusion regarding the 
status of these programs.

II. Justification for Interim Final Rulemaking

    HUD generally publishes rules for advance public comment in 
accordance with its rule on rulemaking at 24 CFR part 10. However, 
under 24 CFR 10.1, HUD may omit prior public notice and comment if it 
is ``impracticable, unnecessary, or contrary to the public interest.'' 
In this instance, HUD has determined that it is unnecessary to delay 
the effectiveness of this rule for advance public comment.
    This interim final rule follows the statutory directive in the 2015 
Act requiring a catch-up adjustment to HUD's CMPs by applying the 
adjustment formula established in the statute and publishing an interim 
final rule. Accordingly, because calculation of the adjustment is 
formula-driven, HUD has limited discretion in updating its regulations 
to reflect the new penalty levels derived from application of the 
formula. HUD emphasizes that this rule addresses only the matter of the 
calculation of the maximum civil monetary penalties for the respective 
violations described in the regulations. This rule does not address the 
issue of the Secretary's discretion to impose or not to impose a 
penalty, nor the procedures that HUD must follow in initiating a civil 
monetary penalty action, or in seeking a civil penalty in a Fair 
Housing Act case.

III. Effective Date

    Section 7 of the Department of Housing and Urban Development Act, 
42 U.S.C. 3535, paragraph (o), requires that ``any regulation 
implementing any provision of the Department of Housing and Urban 
Development Reform Act of 1989 that authorizes the imposition of a 
civil money penalty may not become effective until after the expiration 
of a public comment period of not less than 60 days.'' Therefore, HUD 
delays the effective date to August 16, 2016, which provides for the 
required 60 days of public comment and compliance with the 2015 Act's 
statutory deadline of August 1, 2016. These new penalties apply to 
violations occurring after August 16, 2016.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and therefore, subject to review by the Office of Management and Budget 
(OMB) in accordance with the requirements of the order. Executive Order 
13563 (Improving Regulations and Regulatory Review) directs executive 
agencies to analyze regulations that are ``outmoded, ineffective, 
insufficient, or excessively burdensome, and to modify, streamline, 
expand, or repeal them in accordance with what has been learned.'' 
Executive Order 13563 also directs that, where relevant, feasible, and 
consistent with regulatory objectives, and to the extent permitted by 
law, agencies are to identify and consider regulatory approaches that 
reduce burdens and maintain flexibility and freedom of choice for the 
public. As discussed above in this preamble, this interim final rule 
revises the civil monetary penalty regulations to make inflation 
adjustments required by the 2015 Act. It also provides a technical 
correction to 24 CFR part 28 to harmonize it with its authorizing 
statute and removes obsolete rules from the Code of Federal 
Regulations. This interim final rule is consistent with the goals of 
Executive Order 13563, to reduce regulatory burdens by modifying and 
removing ineffective or outmoded regulations.
    As a result of this review, OMB determined that this rule was not 
significant under Executive Order 12866 and Executive Order 13563.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements, unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. Because HUD has 
determined that good cause exists to issue this rule without prior 
public comment, this rule is not subject to the requirement to publish 
an initial or final regulatory flexibility analysis under the RFA as 
part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\ 
requires that an agency prepare a budgetary impact statement before 
promulgating a rule that includes a Federal mandate that may result in 
the expenditure by state, local, and tribal governments, in the 
aggregate, or by the private sector, of $100 million or more in any one 
year. If a budgetary impact statement is required, section 205 of UMRA 
also requires an agency to identity and consider a reasonable number of 
regulatory alternatives before promulgating a rule.\5\ However, the 
UMRA applies only to rules for which an agency publishes a general 
notice of proposed rulemaking. As discussed above, HUD has determined, 
for good cause, that prior notice and public comment is not required on 
this rule and, therefore, the UMRA does not apply to this interim final 
rule.
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    \4\ 2 U.S.C. 1532.
    \5\ 2 U.S.C. 1534.
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Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule will not have federalism 
implications and would not impose substantial direct compliance costs 
on state and local governments or preempt state law within the meaning 
of the Executive Order.

Environmental Review

    This interim final rule does not direct, provide for assistance or 
loan and mortgage insurance for, or otherwise govern, or regulate, real 
property acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects

24 CFR Part 28

    Administrative practice and procedure, Claims, Fraud, Penalties.

24 CFR Part 30

    Administrative practice and procedure, Grant programs--housing and 
community development, Loan programs--housing and community 
development, Mortgage insurance, Penalties.

[[Page 38935]]

24 CFR Part 87

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

24 CFR Part 180

    Administrative practice and procedure, Aged, Civil rights, Fair 
housing, Individuals with disabilities, Investigations, Mortgages, 
Penalties, Reporting and recordkeeping requirements.

24 CFR Part 3282

    Administrative practice and procedure, Consumer protection, 
Intergovernmental relations, Manufactured homes, Reporting and 
recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, HUD amends 
24 CFR parts 28, 30, 87, 180, and 3282 as follows:

PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 
1986

0
1. The authority citation for part 28 is revised to read as follows:

    Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C. 
3535(d).


0
2. In Sec.  28.10, revise paragraphs (a)(1) introductory text and 
(b)(1) introductory text and the first sentence in paragraph (c) to 
read as follows:


Sec.  28.10  Basis for civil penalties and assessments.

    (a) * * *
    (1) A civil penalty of not more than $10,781 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:
* * * * *
    (b) * * *
    (1) A civil penalty of not more than $10,781 may be imposed upon 
any person who makes, presents, or submits, or causes to be made, 
presented, or submitted, a written statement that:
* * * * *
    (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. * * *
* * * * *

PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT

0
3. The authority citation for part 30 is revised to read as follows:

    Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 
1437z-1 and 3535(d).


0
4. In Sec.  30.20, revise paragraph (b) to read as follows:


Sec.  30.20  Ethical violations by HUD employees.

* * * * *
    (b) Maximum penalty. The maximum penalty is $18,936 for each 
violation.

0
5. In Sec.  30.25, revise paragraph (b) to read as follows:

Sec.  30.25  Violations by applicants for assistance.

* * * * *
    (b) Maximum penalty. The maximum penalty is $18,936 for each 
violation.


Sec.  30.30  [Removed]

0
6. Remove Sec.  30.30.

0
7. In Sec.  30.35, revise the first sentence in paragraph (c)(1) to 
read as follows:


Sec.  30.35  Mortgagees and lenders.

* * * * *
    (c)(1) Amount of penalty. The maximum penalty is $9,468 for each 
violation, up to a limit of $1,893,610 for all violations committed 
during any one-year period. * * *
* * * * *

0
8. In Sec.  30.36, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  30.36  Other participants in FHA programs.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,468 for each 
violation, up to a limit of $1,893,610 for all violations committed 
during any one-year period. * * *

0
9. In Sec.  30.40, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  30.40  Loan guarantees for Indian housing.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,468 for each 
violation, up to a limit of $1,893,610 for all violations committed 
during any one-year period. * * *

0
10. In Sec.  30.45, revise paragraph (g) to read as follows:


Sec.  30.45  Multifamily and section 202 or 811 mortgagors.

* * * * *
    (g) Maximum penalty. The maximum penalty for each violation under 
paragraphs (c) and (f) of this section is $47,340.
* * * * *

0
11. In Sec.  30.50, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  30.50  GNMA issuers and custodians.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,468 for each 
violation, up to a limit of $1,893,610 during any one-year period. * * 
*


Sec.  30.55  [Removed]

0
12. Remove Sec.  30.55.

0
13. In Sec.  30.60, revise paragraph (c) to read as follows:


Sec.  30.60  Dealers or sponsored third-party originators.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,468 for each 
violation, up to a limit for any particular person of $1,893,610 during 
any one-year period.

0
14. In Sec.  30.65, revise paragraph (b) to read as follows:


Sec.  30.65  Failure to disclose lead-based paint hazards.

* * * * *
    (b) Amount of penalty. The maximum penalty is $16,773 for each 
violation.

0
15. In Sec.  30.68, revise paragraph (c) to read as follows:


Sec.  30.68  Section 8 owners.

* * * * *
    (c) Maximum penalty. The maximum penalty for each violation under 
this section is $36,794.
* * * * *


Sec.  30.69  [Removed]

0
16. Remove Sec.  30.69.

PART 87--NEW RESTRICTIONS ON LOBBYING

0
17. The authority citation for part 87 is revised to read as follows:

    Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).


0
18. In Sec.  87.400, revise paragraphs (a), (b), and (e) to read as 
follows:


Sec.  87.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $18,936 and not more than 
$189,361 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $18,936

[[Page 38936]]

and not more than $189,361 for each such failure.
* * * * *
    (e) First offenders under paragraph (a) or (b) of this section 
shall be subject to a civil penalty of $18,936, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $18,936 and $189,361, 
as determined by the agency head or his or her designee.
* * * * *

PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS 
MATTERS

0
19. The authority citation for part 180 is revised to read as follows:

    Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1, 
3535(d), 3601-3619, 5301-5320, and 6103.


0
20. In Sec.  180.671, revise paragraphs (a)(1) through (3) to read as 
follows:


Sec.  180.671  Assessing civil penalties for Fair Housing Act cases.

    (a) * * *
    (1) $19,787, if the respondent has not been adjudged in any 
administrative hearing or civil action permitted under the Fair Housing 
Act or any state or local fair housing law, or in any licensing or 
regulatory proceeding conducted by a federal, state, or local 
governmental agency, to have committed any prior discriminatory housing 
practice.
    (2) $49,467, if the respondent has been adjudged in any 
administrative hearing or civil action permitted under the Fair Housing 
Act, or under any state or local fair housing law, or in any licensing 
or regulatory proceeding conducted by a federal, state, or local 
government agency, to have committed one other discriminatory housing 
practice and the adjudication was made during the 5-year period 
preceding the date of filing of the charge.
    (3) $98,935, if the respondent has been adjudged in any 
administrative hearings or civil actions permitted under the Fair 
Housing Act, or under any state or local fair housing law, or in any 
licensing or regulatory proceeding conducted by a federal, state, or 
local government agency, to have committed two or more discriminatory 
housing practices and the adjudications were made during the 7-year 
period preceding the date of filing of the charge.
* * * * *

PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS

0
21. The authority citation for part 3282 is revised to read as follows:

    Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 
3535(d) and 5424.


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22. Revise Sec.  3282.10 to read as follows:


Sec.  3282.10  Civil and criminal penalties.

    Failure to comply with these regulations may subject the party in 
question to the civil and criminal penalties provided for in section 
611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed 
under section 611 of the Act shall be $2,750 for each violation, up to 
a maximum of $3,437,500 for any related series of violations occurring 
within one year from the date of the first violation.

    Dated: May 20, 2016.
Helen R. Kanovsky,
General Counsel.
[FR Doc. 2016-14060 Filed 6-14-16; 8:45 am]
BILLING CODE 4210-67-P