24 C.F.R. Subpart C—Procedures
Title 24 - Housing and Urban Development
Whenever HUD intends to seek a civil money penalty, the official designated in subpart B of this part, or his or her designee (or the chairperson of the Mortgagee Review Board, or his or her designee, in actions under §30.35), shall issue a written notice to the respondent. This prepenalty notice shall include the following: (a) That HUD is considering seeking a civil money penalty; (b) The specific violations alleged; (c) The maximum civil money penalty that may be imposed; (d) The opportunity to reply in writing to the designated program official within 30 days after receipt of the notice; and (e) That failure to respond within the 30-day period may result in issuance of a complaint under §30.85 without consideration of any information that the respondent may wish to provide. The response shall be in a format prescribed in the prepenalty notice. The response shall include any arguments opposing the imposition of a civil money penalty that the respondent may wish to present. In determining whether to seek a penalty, and the amount of such penalty, the officials designated in subpart B of this part shall consider the following factors: (a) The gravity of the offense; (b) Any history of prior offenses. For violations under §§30.25, 30.35, 30.45, 30.50, 30.55, and 30.60, offenses that occurred prior to December 15, 1989 may be considered; (c) The ability to pay the penalty; (d) The injury to the public; (e) Any benefits received by the violator; (f) The extent of potential benefit to other persons; (g) Deterrence of future violations; (h) The degree of the violator's culpability; (i) With respect to Urban Homestead violations under §30.30, the expenditures made by the violator in connection with any gross profit derived; and (j) Such other matters as justice may require. (k) In addition to the above factors, with respect to violations under §§30.45, 30.55, 30.60, and 30.68, the Assistant Secretary for Housing-Federal Housing Commissioner, or his or her designee, or the Assistant Secretary for Public and Indian Housing, or his or her designee, shall also consider: (1) Any injury to tenants; and/or (2) Any injury to lot owners. (l) HUD may consider the factors listed in paragraphs (a) through (k) of this section to determine the appropriateness of imposing a penalty under §30.35(c)(2); however, HUD cannot change the amount of the penalty under §30.35(c)(2). [61 FR 50215, Sept. 24, 1996, as amended at 66 FR 63442, Dec. 6, 2001; 70 FR 21578, Apr. 26, 2005] (a) General. Upon the expiration of the period for the respondent to submit a response to the prepenalty notice, the official designated in subpart B of this part, or his or her designee (or the Mortgagee Review Board in actions under §30.35) shall determine whether to seek a civil money penalty. Such determination shall be based upon a review of the prepenalty notice, the response, if any, and the factors listed at §30.80. A determination by the Mortgagee Review Board to seek a civil money penalty shall be by a majority vote of the Board. (b) If a determination is made to seek a civil money penalty, the official or his or her designee, or the Mortgagee Review Board, shall issue a complaint to the respondent. The complaint shall state the following: (1) The factual basis for the decision to seek a penalty; (2) The applicable civil money penalty statute; (3) The amount of penalty sought; (4) The right to submit a response in writing, within 15 days of receipt of the complaint, requesting a hearing on any material fact in the complaint, or on the appropriateness of the penalty sought; (5) The address to which a response must be sent; (6) That the failure to submit a response may result in the imposition of the penalty in the amount sought. (c) A copy of this part and of 24 CFR part 26, subpart B shall be included with the complaint. (d) Service of the complaint. The complaint shall be served on the respondent by first class mail, personal delivery, or other means. In cases of violations by mortgagees and lenders of 12 U.S.C. 1735f–14(b) (1)(D) or (1)(F), or by GNMA issuers or custodians of 12 U.S.C. 1723i(b) (1)(G) or (1)(I), a copy of the complaint shall be provided to the Attorney General. (a) General. The respondent may submit to HUD a written response to the complaint within 15 days of its receipt. The response shall be considered a request for a hearing. The response should include the admission or denial of each allegation of liability made in the complaint; any defense on which the respondent intends to rely; any reasons why the civil money penalty is not warranted or should be less than the amount sought in the complaint; and the name, address, and telephone number of the person who will act as the respondent's representative, if any. (b) Filing with the administrative law judges. HUD shall file the complaint and response with the Chief Docket Clerk, Office of Administrative Law Judges, in accordance with §26.37 of this title. If no response is submitted, then HUD may file a motion for default judgment, together with a copy of the complaint, in accordance with §26.39 of this title. Hearings under this part shall be conducted in accordance with the procedures at 24 CFR part 26, subpart B. The officials listed at subpart B of this part, or their designees (or the Mortgagee Review Board for violations under §30.35), are authorized to enter into settlement agreements of civil money penalty claims. Settlement agreements may be executed at any time prior to the issuing of a notice of final determination under §26.50 of this title, and may include sanctions for failure to comply with the terms of the agreement.
Title 24: Housing and Urban Development
PART 30—CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
Subpart C—Procedures
§ 30.70 Prepenalty notice.
§ 30.75 Response to prepenalty notice.
§ 30.80 Factors in determining appropriateness and amount of civil money penalty.
§ 30.85 Complaint.
§ 30.90 Response to the complaint.
§ 30.95 Hearings.
§ 30.100 Settlements.
