The rule makes final an interim rule published in June of last year, which included a new methodology for calculating civil money penalties, starting with a “catch up” adjustment correcting previous inaccuracies.
The final rule also provides for 2017 inflation adjustments for civil monetary penalty amounts. While the rule applies across a variety of HUD offices and programs, a few key parts may be of interest to PHAs:
- 24 CFR 28.10, which covers the basis for civil penalties and assessments for those who make false claims against federal authorities or their agents, has been revised to state that a civil penalty of not more than $10,957 may be imposed for making such claims.
- 24 CFR 30.25 states that the maximum penalty concerning certain prohibited conduct for applicants of assistance to HUD programs is $19,246 for each violation.
- Under 24 CFR 30.65, the maximum penalty for failure to disclose lead-based paint hazards is $17,047 for each violation.
- The maximum penalty for violations listed for Section 8 owners under 24 CFR 30.80 is $37,396 for each violation.
Civil penalties for Fair Housing Act cases have also been revised, as listed in 24 CFR 180.671:
- If the respondent has not committed any prior discriminatory housing practice, the maximum amount of civil penalty is $20,111.
- If the respondent has committed only one prior discriminatory housing practice within the past five years, the maximum civil penalty is $50,276.
If the respondent committed two or more within the past seven years, the maximum amount is $100,554.