[Federal Register Volume 90, Number 112 (Thursday, June 12, 2025)]
[Rules and Regulations]
[Pages 24744-24748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-10519]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-6513-F-01]
Adjustment of Civil Monetary Penalty Amounts for 2025
AGENCY: Office of the General Counsel, HUD.
ACTION: Final rule.
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SUMMARY: This rule provides for 2025 inflation adjustments of civil
monetary penalty amounts required by the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015
Act). This rule also removes an obsolete regulation relating to the
imposition of civil monetary penalties.
DATES: Effective date for 2025 inflation adjustment: July 14, 2025.
FOR FURTHER INFORMATION CONTACT: Amanda Wahlig, Acting Associate
General Counsel for Legislation and Regulations, Office of the General
Counsel, Department of Housing and Urban Development, 451 7th Street
SW, Room 10276, Washington, DC 20024; telephone number 202-402-5138
(this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as from individuals with speech or communication disabilities. To learn
more about how to make an accessible telephone call, please visit
https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
[[Page 24745]]
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Act) (Pub. L. 114-74, Sec. 701), which further
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub. L. 101-410), requires agencies to make annual adjustments to
civil monetary penalty (CMP) amounts for inflation ``notwithstanding
section 553 of title 5, United States Code.'' Section 553 refers to the
Administrative Procedure Act, which provides for advance notice and
public comment during the rulemaking process. Consequently, as
explained in Section III of this preamble, HUD has determined that
advance notice and public comment on this final rule is unnecessary.
This annual adjustment is for 2025. The annual adjustment is based
on the percent change between the U.S. Department of Labor's Consumer
Price Index for All Urban Consumers (``CPI-U'') for the month of
October preceding the date of the adjustment, and the CPI-U for October
of the prior year (28 U.S.C. 2461 note, section (5)(b)(1)). Based on
that formula, the cost-of-living adjustment multiplier for 2025 is
1.02598.\1\ Pursuant to the 2015 Act, adjustments are rounded to the
nearest dollar.\2\
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\1\ Office of Management and Budget, M-25-02, Memorandum for the
Heads of Executive Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2025, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
(https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf).
(October 2024 CPI-U (315.664)/October 2023 CPI-U (307.671) =
1.02598)
\2\ 28 U.S.C. 2461 note.
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Additionally, HUD removes 24 CFR 30.85(e), an obsolete requirement
requiring HUD to notify the Attorney General before taking action to
impose a civil money penalty under 24 CFR 30.35, 30.36 or 30.50. This
provision was promulgated to comply with the then-existing statutory
provision requiring the same, codified at 12 U.S.C. 1735f-14(b)(3),
which Congress subsequently removed through the Helping Families Save
Their Homes Act of 2009, 123 Stat. 1648, Public Law 111-22.
II. This Final Rule
This final rule makes the required 2025 inflation adjustment of
HUD's civil money penalty amounts. The 2025 increases apply to
penalties assessed \3\ on or after this rule's effective date (if the
violation occurred after the enactment of the 2015 Act). HUD provides a
table showing how, for each component, the penalties are being adjusted
for 2025 pursuant to the 2015 Act. In the first column
(``Description''), HUD provides a description of the penalty. In the
second column (``Statutory Citation''), HUD provides the United States
Code statutory citation providing for the penalty. In the third column
(``Regulatory Citation''), HUD provides the Code of Federal Regulations
citation under Title 24 for the penalty. In the fourth column
(``Previous Amount''), HUD provides the amount of the penalty pursuant
to the rule implementing the 2024 adjustment (89 FR 13614, February 23,
2024). In the fifth column (``2025 Adjusted Amount''), HUD lists the
penalty after applying the 2025 inflation adjustment.
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\3\ For certain programs including Multifamily, Section 202, and
Section 811 mortgagors under 24 CFR 30.45 and Section 8 owners under
24 CFR 30.68, penalty amounts provided in a pre-penalty notice to a
respondent pursuant to 24 CFR 30.70 is not considered having been
assessed under this rule. For these programs, penalty amounts are
considered to be assessed once the penalty amounts have been
adjudicated as final or agreed upon under a settlement agreement.
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Regulatory 2025 Adjusted
Description Statutory citation citation (24 CFR) Previous amount amount
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False Claims.................... Omnibus Budget Sec. 28.10(a)... $13,946........... $14,308.
Reconciliation
Act of 1986 (31
U.S.C.
3802(a)(1)).
False Statements................ Omnibus Budget Sec. 28.10(b)... $13,946........... $14,308.
Reconciliation
Act of 1986 (31
U.S.C. 3802
(a)(2)).
Advance Disclosure of Funding... Department of Sec. 30.20...... $24,496........... $25,132.
Housing and Urban
Development Act
(42 U.S.C.
3537a(c)).
Disclosure of Subsidy Layering.. Department of Sec. 30.25...... $24,496........... $25,132.
Housing and Urban
Development Act
(42 U.S.C.
3545(f)).
FHA Mortgagees and Lenders HUD Reform Act of Sec. 30.35...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $12,249. $12,567.
1735f-14(a)(2)). Per Year: Per Year:
$2,449,575. $2,513,215.
Other FHA Participants HUD Reform Act of Sec. 30.36...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $12,249. $12,567.
1735f-14(a)(2)). Per Year: Per Year:
$2,449,575. $2,513,215.
Indian Home Loan Guarantee Housing Community Sec. 30.40...... Per Violation: Per Violation:
Lender or Holder Violations. Development Act $12,249. $12,567.
of 1992 (12 Per Year: Per Year:
U.S.C. 1715z- $2,449,575. $2,513,215.
13a(g)(2)).
Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45...... $61,238........... $62,829.
Owners Violations. 1989 (12 U.S.C.
1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians HUD Reform Act of Sec. 30.50...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $12,249. $12,567.
1723i(a)). Per Year: Per Year:
$2,449,575. $2,513,215.
Title I Broker & Dealers HUD Reform Act of Sec. 30.60...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $12,249. $12,567.
1703). Per Year: Per Year:
$2,449,575. $2,513,215.
Lead Disclosure Violation....... Title X-- Sec. 30.65...... $21,699........... $22,263.
Residential Lead-
Based Paint
Hazard Reduction
Act of 1992 (42
U.S.C.
4852d(b)(1)).
Section 8 Owners Violations..... Multifamily Sec. 30.68...... $47,596........... $48,833.
Assisted Housing
Reform and
Affordability Act
of 1997 (42
U.S.C. 1437z-
1(b)(2)).
Lobbying Violation.............. The Lobbying Sec. 87.400..... Min: $24,496...... Min: $25,132.
Disclosure Act of Max: $244,958..... Max: $251,322.
1995 (31 U.S.C.
1352).
Fair Housing Act Civil Penalties Fair Housing Act Sec. 180.671(a). No Priors: $25,597 No Priors:
(42 U.S.C. One Prior: $63,991 $26,262.
3612(g)(3)). Two or More One Prior:
Priors: $127,983. $65,653.
Two or More
Priors: $131,308.
[[Page 24746]]
Manufactured Housing Regulations Housing Community Sec. 3282.10.... Per Violation: Per Violation:
Violation. Development Act $3,558. $3,650.
of 1974 (42 Per Year: Per Year:
U.S.C. 5410). $4,446,755. $4,562,282.
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III. Final Rulemaking Without Notice and Comment
HUD generally publishes regulations for public comment before
issuing a final rule in accordance with its own regulations on
rulemaking; however, HUD may omit advance notice and public
participation for good cause where prior public procedure is
``impractical, unnecessary, or contrary to the public interest.'' 24
CFR 10.1. Here, good cause exists to omit notice and comment, because,
as discussed throughout this rule, HUD is taking an action--adjusting
civil money penalties to account for inflation--that is required by the
2015 Act and lacks discretion to decline to adjust civil penalties or
to change the amount by which a penalty is adjusted in response to any
comments it might receive. Finally, the 2015 Act explicitly states that
the annual inflation adjustments are to be taken ``notwithstanding''
the Administrative Procedure Act's (APA) rulemaking procedures,
providing further support for HUD's finding that good cause exists to
issue this final rule without notice and comment.\4\
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\4\ Note further that while Section 7(o) of the Department of
Housing and Urban Development Act also requires that any HUD
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, this rule does not authorize the imposition of a new civil
money penalty; rather, it makes a standard inflation adjustment to
penalties that have been previously authorized.
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Good cause also exists to remove 24 CFR 30.85(e) without notice and
comment because the statutory authority for the requirement has been
removed rendering this paragraph of HUD's regulations outdated. HUD is
taking this action to ensure that its regulations are current for
members of the public.
IV. Delayed Effective Date
Notwithstanding the provision of the 2015 Act that permits Federal
agencies to publish annual penalty inflation adjustments
notwithstanding section 553 of the APA, this final rule shall take
effect 30-calendar days after publication in the Federal Register. This
delayed effective date is necessary to comply with Section 7(o) of the
Department of Housing and Urban Development Act,\5\ which provides that
no rule or regulation may become effective until the expiration of the
30-calendar day period beginning on the day after the day on which such
rule is published as final. While HUD's rulemaking regulations allow
for the issuance of an immediately effective final rule under certain
exceptions, which in this case would be satisfied by the 2015 Act's
requirement that agencies make annual inflation adjustments
notwithstanding section 553 of the APA, nothing in the 2015 Act exempts
HUD from complying with the HUD Act.
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\5\ 42 U.S.C. 3535(o)(3).
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V. Findings and Certifications
Regulatory Review--Executive Orders (E.O.) 12866, as Amended by E.O.
13563
Under E.O. 12866 (Regulatory Planning and Review) (58 FR 51735), 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. E.O.
13563 (Improving Regulations and Regulatory Review) (76 FR 3821)
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.'' E.O. 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 final rule adjusts
existing civil monetary penalties for inflation by a statutorily
required amount and removes an obsolete regulation. This rule was
determined not to be a ``significant regulatory action'' as defined in
section 3(f) of Executive Order 12866 and is not an economically
significant regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (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) \6\
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 identify and consider a reasonable number of
regulatory alternatives before promulgating a rule.\7\ However, the
UMRA applies only to rules for which an agency publishes a general
notice of proposed rulemaking. As discussed in this preamble, 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
final rule.
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\6\ 2 U.S.C. 1532.
\7\ 2 U.S.C. 1535.
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Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') (64 FR 43255)
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 final rule does not direct, provide for assistance or loan and
[[Page 24747]]
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, Mortgages, Penalties.
24 CFR Part 87
Government contracts, Government employees, 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, Investigations, Manufactured homes,
Reporting and recordkeeping requirements, Warranties.
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 continues 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. Amend Sec. 28.10 by revising paragraphs (a)(1) introductory text
and (b)(1) introductory text, to read as follows:
Sec. 28.10 Basis for civil penalties and assessments
(a) * * *
(1) A civil penalty of not more than $14,308 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 $14,308 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a written statement that:
* * * * *
PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
0
3. The authority citation for part 30 continues 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 $25,132 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 $25,132 for each
violation.
0
6. 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 $12,567 for each
violation, up to a limit of $2,513,215 for all violations committed
during any one-year period. * * *
* * * * *
0
7. 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 $12,567 for each
violation, up to a limit of $2,513,215 for all violations committed
during any one-year period. * * *
0
8. 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 $12,567 for each
violation, up to a limit of $2,513,215 for all violations committed
during any one-year period. * * *
0
9. 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 $62,829.
* * * * *
0
10. 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 $12,567 for each
violation, up to a limit of $2,513,215 during any one-year period. * *
*
0
11. 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 $12,567 for each
violation, up to a limit for any particular person of $2,513,215 during
any one-year period.
0
12. 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 $22,263 for each
violation.
0
13. 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 $48,833.
* * * * *
Sec. 30.85 [Amended]
0
14. Revise Sec. 30.85 by removing paragraph (e).
PART 87--NEW RESTRICTIONS ON LOBBYING
0
15. The authority citation for part 87 continues to read as follows:
Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).
0
16. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as
follows:
[[Page 24748]]
Sec. 87.400 Penalties.
(a) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than $25,132 and not more than
$251,322 for each such expenditure.
(b) Any person who fails to file or amend the disclosure form (see
appendix B to this part) to be filed or amended if required herein,
shall be subject to a civil penalty of not less than $25,132 and not
more than $251,322 for each such failure.
* * * * *
(e) First offenders under paragraphs (a) or (b) of this section
shall be subject to a civil penalty of $25,132, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $25,132 and $251,322,
as determined by the agency head or his or her designee.
* * * * *
PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS
MATTERS
0
17. The authority citation for part 180 continues 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
18. 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) $26,262, 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) $65,653, 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) $131,308, 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
19. The authority citation for part 3282 continues to read as follows:
Authority: 15 U.S.C. 2697; 28 U.S.C. 2461 note; 42 U.S.C.
3535(d), 5403, and 5424.
0
20. 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 penalty imposed under
section 611 of the Act shall be $3,650 for each violation, up to a
maximum of $4,562,282 for any related series of violations occurring
within one year from the date of the first violation.
Scott Turner,
Secretary.
[FR Doc. 2025-10519 Filed 6-11-25; 8:45 am]
BILLING CODE 4210-67-P