1.
What is the role of the Departmental Enforcement Center (DEC)?
The DEC works with HUD's program areas, such as Multifamily Housing
and Single Family Housing, in various capacities,takes suspension
and debarment actions, and pursues civil money penalties or double
damages, where there have been program violations. Housing problems
can relate to either physical deficiencies or discrepancies in the
financial condition of particular housing stock.
2.
When is enforcement action taken?
The
DEC attempts to work cooperatively with non-compliant owners. For
those who refuse to follow the Department's statutory and regulatory
requirements, the DEC takes appropriate enforcement action. This
can take the form of various sanctions, including suspension and
debarment from Government business. Civil money penalties also may
be imposed. In more serious cases involving multifamily housing,
the Department can abate owners' federal subsidy payments and, if
necessary, foreclose on properties.
3.
Why is enforcement action taken?
When
owners of HUD-assisted properties do not live up to their responsibility
to provide clean, safe and sanitary housing, the DEC steps in and
takes action. Enforcement action may be taken against owners with
physically substandard properties, those with financial audit findings,
and those owners who fail to submit annual financial statements.
The DEC may pursue civil money penalties or double damages where
program violations have occurred. In general, the DEC refers to
the U.S. Justice Department or local US Attorney's Offices cases
of civil violations of laws governing HUD programs. Criminal referrals
are made to HUD's Office of the Inspector General.
4.
Explain further what enforcement tools may be used.
These
tools include suspension and debarment, which are administrative
enforcement actions that exclude HUD business partners from further
participation in HUD and all other Federal Executive Branch procurement
and non-procurement programs. Civil money penalties may be pursued
against property owners who violate HUD's statutes and regulations.
Judicial actions may be initiated with the assistance of the Department
of Justice against project owners who fail to operate their properties
in compliance with HUD's requirements. Two general types of remedies
exist for judicial actions - those against the owner participant
and those against the project itself. Participant-based remedies
include litigation for breach of contract, which may involve the
Double Damage Statute and statutory actions like the False Claims
Act. Project-based remedies may involve the appointment of a receiver,
a change in management, an injunctive action, a recommendation to
foreclose, and/or abatement of housing assistance payments.