(a) General. If there appears to be a failure or threatened failure
to comply with this regulation and if the noncompliance or threatened
noncompliance cannot be corrected by informal means, the Department may
suspend, terminate or refuse to grant or to continue Federal financial
assistance or take any other means authorized by law. Such other means
may include, but are not limited to:
(1) A referral to the Department of Justice with a recommendation
that appropriate proceedings be brought to enforce any rights of the
United States under any law of the United States or any assurance; and
(2) Any applicable proceeding under state or local law.
(b) Noncompliance with the requirements of this part. If a recipient
fails or refuses to comply with a requirement imposed by or pursuant to
this part, the Department may institute an administrative enforcement
proceeding to compel compliance with the requirement, to seek
appropriate relief, and or to terminate Federal financial assistance in
accordance with the procedures of paragraph (c) of this section. The
Department shall not be required to provide assistance in such a case
during the pendency of the administrative proceedings under such
paragraph if grants have not yet been approved or funds not yet
committed to the recipient. However, the Department shall continue
assistance during the pendency of such proceedings where such assistance
is due and payable pursuant to an application therefor approved prior to
the effective date of this part.
(c) Termination of or refusal to grant or to continue Federal
financial assistance. No order suspending, terminating or refusing to
grant or continue Federal financial assistance shall become effective
until:
(1) The Assistant Secretary has advised the applicant or recipient
of its failure to comply and compliance has not been secured by
voluntary means; and
(2) There has been an express finding on the record, after
opportunity for hearing, of a failure by the applicant or recipient to
comply with a requirement imposed by or pursuant to this part. Any
action to suspend or terminate or to refuse to grant or to continue
Federal financial assistance shall be limited to the particular
political entity, or part thereof, or other applicant or recipient as to
whom such a finding has been made and shall be limited in its effect to
the particular program, or part thereof, in which such noncompliance has
been so found.
(d) Other means authorized by law. No action to effect compliance by
any other means authorized by law shall be taken until:
(1) The Assistant Secretary has determined that compliance cannot be
secured by voluntary means;
(2) The recipient or other person has been notified of its failure
to comply and of the action to be taken to effect compliance; and
(3) The expiration of at least 10 days from the mailing of such
notice to the recipient or other person.
