Department of Housing and Urban Development

Document Sample
Department of Housing and Urban Development Powered By Docstoc
					                                                                                                                             Thursday,
                                                                                                                             December 27, 2007




                                                                                                                             Part III

                                                                                                                             Department of
                                                                                                                             Housing and Urban
                                                                                                                             Development
                                                                                                                             2 CFR Part 2424
                                                                                                                             24 CFR Parts 5, 6, et al.
                                                                                                                             Implementation of OMB Guidance on
                                                                                                                             Nonprocurement Debarment and
                                                                                                                             Suspension; Final Rule
pwalker on PROD1PC71 with RULES3




                                   VerDate Aug<31>2005   18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00001   Fmt 4717   Sfmt 4717   E:\FR\FM\27DER3.SGM   27DER3
                                        73484            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        DEPARTMENT OF HOUSING AND                                the telephone number listed above by                     To reflect the new location of HUD’s
                                        URBAN DEVELOPMENT                                        calling the toll-free Federal Information             suspension and debarment regulations
                                                                                                 Relay Service at (800) 877–8339.                      at 2 CFR part 2424, the March 23, 2007,
                                        2 CFR Part 2424                                          SUPPLEMENTARY INFORMATION:                            rule proposed numerous conforming
                                                                                                                                                       regulatory changes throughout HUD’s
                                        24 CFR Parts 5, 6, 8, 15, 21, 24, 25, 26,                I. Background                                         regulation in title 24 of the CFR. Various
                                        84, 85, 91, 92, 103, 107, 135, 200, 202,                    OMB is undertaking to restructure the              parts of title 24 have cross-references to
                                        203, 206, 245, 291, 401, 402, 570, 572,                  framework of Federal government                       the nonprocurement suspension and
                                        585, 941, 954, 982, 983, 1000, 1003,                     policies for grants, other financial                  debarment provisions contained at 24
                                        1005, 1006, 3282, and 3500                               assistance, and nonprocurement                        CFR part 24; therefore, the rule
                                        [Docket No. FR–5071–F–02]                                agreements in an effort to make it easier             proposed to replace them with
                                                                                                 for applicants and recipients to locate               references to 2 CFR part 2424. HUD also
                                        RIN 2501–AD29                                            and comply with such policies. On May                 proposed to revise references to the
                                                                                                 11, 2004 (69 FR 26276), OMB                           Drug Free Workplace Act, which were
                                        Implementation of OMB Guidance on                                                                              originally included within 24 CFR part
                                        Nonprocurement Debarment and                             established a new title 2 of the CFR,
                                                                                                 which is comprised of two subtitles.                  24. Neither the conforming regulatory
                                        Suspension                                                                                                     changes nor the revision of references to
                                                                                                 Subtitle A, entitled ‘‘Government-wide
                                        AGENCY:    Office of the Secretary, HUD.                 Grants and Agreements,’’ contains OMB                 the Drug Free Workplace Act have
                                        ACTION:   Final rule.                                    policy guidance to Federal agencies on                substantive effect on the Department’s
                                                                                                 grants and agreements. Subtitle B,                    regulations.
                                        SUMMARY: Following publication of a                      entitled ‘‘Federal Agency Regulations                    HUD’s March 23, 2007, rule also
                                        March 23, 2007, proposed rule, this                      for Grants and Agreements,’’ will                     proposed revisions to its Limited Denial
                                        final rule relocates HUD’s regulations                   contain the regulations of Federal                    of Participation (LDP) regulations
                                        governing nonprocurement debarment                       agencies implementing the OMB                         currently codified at 24 CFR part 24.
                                        and suspension to a new part in title 2                  guidance, as it applies to grants and                 These revisions included changes to
                                        of the Code of Federal Regulations                       other financial assistance agreements                 account for the relocation of the
                                        (CFR). The relocation is part of a                       and nonprocurement transactions.                      nonprocurement debarment and
                                        governmentwide initiative to create one                                                                        suspension rules, as well as to clarify
                                                                                                    On August 31, 2005, at 70 FR 51862,
                                        location where the public can access                                                                           that included within the causes for
                                                                                                 OMB continued its initiative to create a
                                        both the Office of Management and                                                                              imposing an LDP under new 2 CFR
                                                                                                 single location where OMB guidance
                                        Budget (OMB) guidance for grants and                                                                           2424.1110(a)(8) are any acts or
                                                                                                 and Federal agency implementing
                                        agreements and the associated Federal                                                                          omissions that would be cause for
                                                                                                 regulations could be found by
                                        agency implementing regulations. The                                                                           debarment under 2 CFR 180.800. HUD
                                                                                                 incorporating guidance documents into
                                        new part adopts the OMB guidance on                                                                            also proposed amending 2 CFR
                                                                                                 2 CFR, subtitle A, and making
                                        nonprocurement debarment and                                                                                   2424.1130 by adding paragraph (c) to
                                                                                                 conforming changes. OMB is engaging
                                        suspension and supplements it with                                                                             specify that the applicable factors found
                                                                                                 in a process by which it will relocate
                                        HUD-specific clarifications and                                                                                in 2 CFR 180.860 may be considered by
                                                                                                 and revise guidance documents
                                        additions. The rule also makes                                                                                 the Departmental official or designee in
                                                                                                 including, but not limited to, OMB
                                        conforming changes to HUD regulations                                                                          deciding whether to terminate, modify,
                                                                                                 circulars and OMB guidance for Federal
                                        referencing the nonprocurement                                                                                 or affirm an LDP. Finally, HUD
                                                                                                 agencies on governmentwide debarment
                                        debarment and suspension regulations.                                                                          proposed clarifying changes to 24 CFR
                                                                                                 and suspension.
                                        This regulatory action is an                                                                                   5.105, to add the term ‘‘participant,’’ to
                                                                                                    On March 23, 2007, at 72 FR 14015,
                                        administrative simplification that would                                                                       24 CFR 21.605(a)(2); to refer to OMB
                                                                                                 HUD published a proposed rule to adopt
                                        make no substantive change in HUD                                                                              Circular A–102, as implemented at 24
                                                                                                 the OMB guidance in subparts A
                                        policy or procedures for                                                                                       CFR part 85; and to amend 24 CFR 84.13
                                                                                                 through I of 2 CFR part 180, as
                                        nonprocurement debarment and                                                                                   by removing HUD as a regulated entity
                                                                                                 supplemented by HUD’s policies and
                                        suspension. This final rule takes into                                                                         under part 84.1 This final rule adopts
                                                                                                 procedures for nonprocurement
                                        consideration the one public comment                                                                           these changes without further
                                                                                                 debarment and suspension. HUD’s rule
                                        received on the March 23, 2007,                                                                                modification.
                                                                                                 proposed to create a new part at 2 CFR
                                        proposed rule. To conform the rule to                                                                             In this final rule, HUD has also
                                                                                                 part 2424 that adopts, by reference, the
                                        reflect the establishment of HUD’s                                                                             removed the delegation of authority to
                                                                                                 baseline provisions of 2 CFR part 180
                                        Office of Hearings and Appeals and                                                                             the Director of the Departmental
                                                                                                 and includes HUD-specific
                                        more closely track the language of the                                                                         Enforcement Center from proposed 24
                                                                                                 supplements, clarifications, and
                                        OMB guidelines, this final rule adopts                                                                         CFR 2424.137. The section now found
                                                                                                 modifications to 2 CFR part 180.
                                        the proposed rule with minor changes.                                                                          in the final rule mirrors HUD’s previous
                                                                                                 Accordingly, HUD’s regulations at 24
                                        DATES: Effective Date: January 28, 2008.
                                                                                                                                                       promulgation of the nonprocurement
                                                                                                 CFR part 24, entitled ‘‘Government-wide
                                                                                                                                                       suspension and debarment rule. HUD
                                        FOR FURTHER INFORMATION CONTACT:                         Debarment and Suspension
                                                                                                                                                       has made slight modifications to 24 CFR
                                        Dane Narode, Acting Associate General                    (Nonprocurement),’’ are being
                                                                                                                                                       2424.747 and 2424.842 in order to more
                                        Counsel, Office of Program                               supplanted by 2 CFR part 2424. It is
                                                                                                                                                       closely track the language of the OMB
                                        Enforcement, Administrative                              important to note that the OMB rule
                                                                                                                                                       guidelines. HUD has also modified 24
                                        Proceedings Division, Department of                      promulgating 2 CFR 180 (70 FR 51863,
                                                                                                                                                       CFR 2424.952 to reflect the
                                        Housing and Urban Development, 1250                      August 31, 2005) re-codified the existing
                                                                                                                                                       establishment of HUD’s Office of
                                        Maryland Avenue, SW., Suite 200,                         common rule on nonprocurement
                                                                                                                                                       Hearings and Appeals and the
pwalker on PROD1PC71 with RULES3




                                        Washington DC 20024–0500; telephone                      debarment and suspension issued by 33
                                                                                                                                                       dissolution of HUD’s Board of Contract
                                        number (202) 708–2350 (this is not a                     Federal agencies, including HUD, on
                                        toll-free number); e-mail address                        November 26, 2003 (68 FR 66534). As a                   1 For a more detailed description of the proposed
                                        DaneM.Narode@hud.gov. Hearing- or                        result, this rule does not change existing            regulatory changes, please see the preamble to the
                                        speech-impaired individuals may access                   HUD policy or procedures.                             March 23, 2007, proposed rule.



                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00002   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                       73485

                                        Appeals. None of the above changes                       a valuable safeguard to the public and                required by statute, or the rule preempts
                                        make substantial modifications to the                    the Federal government.                               State law, unless the agency meets the
                                        rule as proposed, or to HUD debarment                                                                          consultation and funding requirements
                                                                                                 III. Findings and Certifications
                                        and suspension practice.                                                                                       of section 6 of the Executive Order. This
                                                                                                 Regulatory Flexibility Act                            rule does not have federalism
                                        II. Summary of the Public Comment
                                        Received on the March 23, 2007,                             The Regulatory Flexibility Act (5                  implications and does not impose
                                        Proposed Rule                                            U.S.C. 601 et seq.) generally requires an             substantial direct compliance costs on
                                                                                                 agency to conduct a regulatory                        State and local governments or preempt
                                           This final rule follows publication of                                                                      State law within the meaning of the
                                        the March 23, 2007, proposed rule and                    flexibility analysis of any rule subject to
                                                                                                 notice and comment rulemaking                         Executive Order.
                                        takes into consideration the one public
                                        comment received on the proposed rule.                   requirements, unless the agency certifies             Unfunded Mandates Reform Act
                                        After careful consideration of the issue                 that the rule will not have a significant
                                        raised by the commenter, HUD has                         economic impact on a substantial                        Title II of the Unfunded Mandates
                                        decided to adopt the proposed rule with                  number of small entities. The regulatory              Reform Act of 1995 (2 U.S.C. 1531–
                                        minor changes, as discussed above.                       amendments that would be made by this                 1538) (UMRA) establishes requirements
                                           The public comment period on the                      rule are procedural. This rule relocates              for Federal agencies to assess the effects
                                        March 23, 2007, proposed rule closed                     HUD’s regulations governing                           of their regulatory actions on State,
                                        on May 22, 2007. HUD received one                        nonprocurement debarment and                          local, and tribal governments, and on
                                        comment. The comment, from a                             suspension to a new part in title 2 of the            the private sector. This rule does not
                                        national nonprofit organization that                     CFR. The relocation is part of a                      impose any Federal mandates on any
                                        represents housing and redevelopment                     governmentwide initiative to create one               State, local, or tribal governments, or on
                                        officials, expressed concern about the                   location where the public can find both               the private sector, within the meaning of
                                        LDP sanction as a HUD-specific                           the OMB requirements for grants and                   UMRA.
                                        procedure and requested that HUD                         agreements and the associated Federal
                                                                                                 agency implementing regulations. The                  List of Subjects
                                        examine and reconsider its use of the
                                        LDP sanction. The commenter wrote                        rule also makes conforming changes to                 2 CFR Part 2424
                                        that because the LDP sanction takes                      HUD regulations referencing the
                                        effect immediately for a limited                         nonprocurement debarment and                            Administrative practice and
                                        duration, the sanction may run its                       suspension regulations. This regulatory               procedure, Debarment and suspension,
                                        course prior to the completion of the                    action is an administrative                           Grant programs, Reporting and
                                        administrative review process. The                       simplification that makes no substantive              recordkeeping requirements.
                                        commenter also questioned whether the                    change in HUD policy or procedures for
                                                                                                                                                       24 CFR Part 5
                                        existence of the LDP sanction creates an                 nonprocurement debarment and
                                        ‘‘undesirable imbalance’’ in the                         suspension. The rule does not have any                  Administrative practice and
                                        relationship between the local HUD                       impact on the substantive rights or                   procedure, Aged, Claims, Crime,
                                        officials authorized to impose the LDP                   duties of small entities, because the                 Government contracts, Grant
                                        and local officials who may be subject                   policies and procedures are being                     programs—housing and community
                                        to the sanction. The commenter did not                   relocated, while remaining                            development, Individuals with
                                        comment directly on the proposed                         substantively the same. Accordingly, the              disabilities, Intergovernmental relations,
                                        regulatory change regarding LDPs, and                    undersigned certifies that this rule will             Loan programs—housing and
                                        wrote that it was not ‘‘suggesting at this               not have a significant economic impact                community development, Low and
                                        time that the LDP regulations should be                  on a substantial number of small                      moderate income housing, Mortgage
                                        removed.’’ Rather, the commenter asked                   entities.                                             insurance, Penalties, Pets, Public
                                        HUD to explain the continued use of                                                                            housing, Rent subsidies, Reporting and
                                        LDPs.                                                    Environmental Impact
                                                                                                                                                       recordkeeping requirements, Social
                                           As noted above, HUD has not revised                      This rule does not direct, provide for             security, Unemployment compensation,
                                        the proposed rule in response to this                    assistance or loan and mortgage                       Wages.
                                        comment. In response to the questions                    insurance for, or otherwise govern or
                                        raised by the commenter, HUD notes                       regulate, real property acquisition,                  24 CFR Part 6
                                        first that the proposed change to the                    disposition, leasing, rehabilitation,
                                        LDP provision was limited to a                           alteration, demolition, or new                          Administrative practice and
                                        clarification, and was not a substantive                 construction, or establish, revise, or                procedure, Civil rights, Equal
                                        change. Further, the LDP sanction is not                 provide for standards for construction or             employment opportunity, Grant
                                        new, but has been relied upon by HUD                     construction materials, manufactured                  programs—housing and community
                                        for more than two decades in order to                    housing, or occupancy. Accordingly,                   development, Investigations, Loan
                                        protect the public and HUD from future                   under 24 CFR 50.19(c)(1), this rule is                programs—housing and community
                                        harm. Rather than creating any undue                     categorically excluded from the                       development, Reporting and
                                        imbalance in the relationship between                    requirements of the National                          recordkeeping requirements.
                                        the Federal government and program                       Environmental Policy Act (42 U.S.C.                   24 CFR Part 8
                                        participants, the LDP has been an                        4321 et seq.).
                                        effective tool in immediately curtailing                                                                         Administrative practice and
                                        program abuse. Absent the availability                   Executive Order 13132, Federalism                     procedure, Civil rights, Equal
                                        of the LDP sanction, the misuse of                          Executive Order 13132 (entitled                    employment opportunity, Grant
pwalker on PROD1PC71 with RULES3




                                        scarce Federal resources would                           ‘‘Federalism’’) prohibits an agency from              programs—housing and community
                                        continue pending the completion of a                     publishing any rule that has federalism               development, Individuals with
                                        potentially lengthy administrative                       implications if the rule either imposes               disabilities, Loan programs—housing
                                        process. Accordingly, HUD continues to                   substantial direct compliance costs on                and community development, Reporting
                                        believe that the LDP sanction provides                   state and local governments and is not                and recordkeeping requirements.


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00003   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73486            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        24 CFR Part 15                                           programs—housing and community                        24 CFR Part 401
                                          Classified information, Courts,                        development, Loan programs—housing                      Grant programs—housing and
                                        Freedom of information, Government                       and community development, Religious                  community development, Loan
                                        employees, Reporting and                                 discrimination, Reporting and                         programs—housing and community
                                        recordkeeping requirements.                              recordkeeping requirements, Sex                       development, Low and moderate
                                                                                                 discrimination.                                       income housing, Mortgage insurance,
                                        24 CFR Part 21
                                                                                                 24 CFR Part 135                                       Mortgages, Rent subsidies, Reporting
                                          Administrative practice and                                                                                  and recordkeeping requirements.
                                        procedure, Drug abuse, Grant programs,                     Administrative practice and
                                        Loan programs, Reporting and                             procedure, Community development,                     24 CFR Part 402
                                        recordkeeping requirements.                              Equal employment opportunity,                           Low and moderate income housing,
                                                                                                 Government contracts, Grant                           Rent subsidies.
                                        24 CFR Part 24                                           programs—housing and community
                                          Administrative practice and                            development, Housing, Loan                            24 CFR Part 570
                                        procedure, Government contracts, Grant                   programs—housing and community                           Administrative practice and
                                        programs, Loan programs, Technical                       development, Reporting and                            procedure, American Samoa,
                                        assistance, Reporting and recordkeeping                  recordkeeping requirements, Small                     Community development block grants,
                                        requirements.                                            businesses.                                           Grant programs—education, Grant
                                        24 CFR Part 25                                           24 CFR Part 200                                       programs—housing and community
                                                                                                                                                       development, Guam, Indians, Loan
                                          Administrative practice and                              Administrative practice and                         programs—housing and community
                                        procedure, Loan programs—housing                         procedure, Claims, Equal employment                   development, Low and moderate
                                        and community development,                               opportunity, Fair housing, Housing                    income housing, Northern Mariana
                                        Organization and functions                               standards, Lead poisoning, Loan                       Islands, Pacific Islands Trust Territory,
                                        (Government agencies), Reporting and                     programs—housing and community                        Puerto Rico, Reporting and
                                        recordkeeping requirements.                              development, Mortgage insurance,                      recordkeeping requirements, Student
                                        24 CFR Part 26                                           Organization and functions                            aid, Virgin Islands.
                                                                                                 (Government agencies), Penalties,
                                          Administrative practice and                            Reporting and recordkeeping                           24 CFR Part 572
                                        procedure.                                               requirements, Social security,                          Government property, Grant
                                        24 CFR Part 84                                           Unemployment compensation, Wages.                     programs—housing and community
                                          Accounting, Colleges and universities,                 24 CFR Part 202                                       development, Low and moderate
                                        Grant programs, Hospitals, Nonprofit                                                                           income housing, Nonprofit
                                                                                                   Administrative practice and                         organizations, Reporting and
                                        organizations, Reporting and                             procedure, Home improvement,
                                        recordkeeping requirements.                                                                                    recordkeeping requirements.
                                                                                                 Manufactured homes, Mortgage
                                        24 CFR Part 85                                           insurance, Reporting and recordkeeping                24 CFR Part 585
                                          Accounting, Grant programs, Indians,                   requirements.                                           Community facilities, Grant
                                        Intergovernmental relations, Reporting                   24 CFR Part 203                                       programs—housing and community
                                        and recordkeeping requirements.                                                                                development, Homeless, Low and
                                                                                                   Hawaiian Natives, Home                              moderate income housing, Reporting
                                        24 CFR Part 91                                           improvement, Indians—lands, Loan                      and recordkeeping requirements.
                                          Aged, Grant programs—housing and                       programs—housing and community
                                                                                                 development, Mortgage insurance,                      24 CFR Part 941
                                        community development, Homeless,
                                        Individuals with disabilities, Low and                   Reporting and recordkeeping                             Grant programs—housing and
                                        moderate income housing, Reporting                       requirements, Solar energy.                           community development, Loan
                                        and recordkeeping requirements.                          24 CFR Part 206                                       programs—housing and community
                                                                                                                                                       development, Public housing.
                                        24 CFR Part 92                                             Aged, Condominiums, Loan
                                                                                                 programs—housing and community                        24 CFR Part 954
                                          Administrative practice and
                                        procedure, Grant programs—housing                        development, Mortgage insurance,                        Administrative practice and
                                        and community development, Low and                       Reporting and recordkeeping                           procedure, Grant programs—housing
                                        moderate income housing,                                 requirements.                                         and community development, Grant
                                        Manufactured homes, Rent subsidies,                      24 CFR Part 245                                       programs—Indians, Indians, Low and
                                        Reporting and recordkeeping                                                                                    moderate income housing,
                                        requirements.                                              Condominiums, Cooperatives, Grant                   Manufactured homes, Rent subsidies,
                                                                                                 programs—housing and community                        Reporting and recordkeeping
                                        24 CFR Part 103                                          development, Loan programs—housing                    requirements.
                                          Administrative practice and                            and community development, Low and
                                        procedure, Aged, Fair housing,                           moderate income housing, Rent                         24 CFR Part 982
                                        Individuals with disabilities,                           subsidies, Reporting and recordkeeping                  Grant programs—housing and
                                        Intergovernmental relations,                             requirements, Utilities.                              community development, Grant
                                        Investigations, Mortgages, Penalties,                                                                          programs—Indians, Indians, Public
                                                                                                 24 CFR Part 291
                                        Reporting and recordkeeping                                                                                    housing, Rent subsidies, Reporting and
pwalker on PROD1PC71 with RULES3




                                        requirements.                                              Community facilities, Homeless, Low                 recordkeeping requirements.
                                                                                                 and moderate income housing,
                                        24 CFR Part 107                                          Mortgages, Reporting and recordkeeping                24 CFR Part 983
                                          Administrative practice and                            requirements, Surplus government                        Grant programs—housing and
                                        procedure, Fair housing, Grant                           property.                                             community development, Rent


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00004   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                           73487

                                        subsidies, Reporting and recordkeeping                   CHAPTER XXIV—DEPARTMENT OF                            2424.1130 How may I contest my limited
                                        requirements.                                            HOUSING AND URBAN                                         denial of participation?
                                                                                                 DEVELOPMENT                                           2424.1135 Do Federal agencies coordinate
                                        24 CFR Part 1000                                                                                                   limited denial of participation actions?
                                                                                                 PART 2424—NONPROCUREMENT                              2424.1140 What is the scope of a limited
                                          Aged, Community development block
                                                                                                                                                           denial of participation?
                                        grants, Grant programs—housing and                       DEBARMENT AND SUSPENSION
                                                                                                                                                       2424.1145 May HUD impute the conduct of
                                        community development, Grant                                                                                       one person to another in a limited denial
                                                                                                 Sec.
                                        programs—Indians, Indians, Individuals                   2424.10 What does this part do?                           of participation?
                                        with disabilities, Public housing,                       2424.20 Does this part apply to me?                   2424.1150 What is the effect of a
                                        Reporting and recordkeeping                              2424.30 What policies and procedures must                 suspension or debarment on a limited
                                        requirements.                                                 I follow?                                            denial of participation?
                                                                                                                                                       2424.1155 What is the effect of a limited
                                        24 CFR Part 1003                                         Subpart A—General                                         denial of participation on a suspension
                                          Alaska, Community development                          2424.137 Who in HUD may grant an                          or a debarment?
                                                                                                     exception to let an excluded person               2424.1160 May a limited denial of
                                        block grants, Grant programs—housing                                                                               participation be terminated before the
                                        and community development, Grant                             participate in a covered transaction?
                                                                                                                                                           term of the limited denial of
                                        programs—Indians, Indians, Reporting                     Subpart B—Covered Transactions                            participation expires?
                                        and recordkeeping requirements.                          2424.220 What contracts and subcontracts,             2424.1165 How is a limited denial of
                                                                                                     in addition to those listed in 2 CFR                  participation reported?
                                        24 CFR Part 1005
                                                                                                     180.220, are covered transactions?                  Authority: Sec. 2455, Pub. L. 103–355, 108
                                          Indians, Loan programs—Indians,                                                                              Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp.,
                                                                                                 Subpart C—Responsibilities of Participants
                                        Reporting and recordkeeping                                                                                    p. 189; E.O. 12689, 3 CFR, 1989 Comp., p.
                                                                                                 Regarding Transactions
                                        requirements.                                                                                                  235.
                                                                                                 2424.300 What must I do before I enter into
                                        24 CFR Part 1006                                             a covered transaction with another                § 2424.10   What does this part do?
                                                                                                     person at the next lower tier (HUD
                                          Community development block                                                                                     In this part, HUD adopts, as HUD
                                                                                                     supplement to governmentwide
                                        grants, Grant programs—housing and                           definition at 2 CFR 180.300)?
                                                                                                                                                       policies, procedures, and requirements
                                        community development, Grant                             2424.332 What methods must I use to pass              for nonprocurement debarment and
                                        programs—Indians, Hawaiian Natives,                          requirements down to participants at              suspension, the OMB guidance in
                                        Low and moderate income housing,                             lower tiers with whom I intend to do              subparts A through I of 2 CFR part 180,
                                        Reporting and recordkeeping                                  business?                                         as supplemented by this part. This
                                        requirements.                                                                                                  adoption thereby gives regulatory effect
                                                                                                 Subpart D—Responsibilities of Federal
                                                                                                 Agency Officials Regarding Transactions               for HUD to the OMB guidance, as
                                        24 CFR Part 3282
                                                                                                                                                       supplemented by this part. This part
                                          Administrative practice and                            2424.437 What method do I use to
                                                                                                                                                       satisfies the requirements in section 3 of
                                                                                                     communicate to a participant the
                                        procedure, Consumer protection,                              requirements described in the OMB                 Executive Order 12549, ‘‘Debarment and
                                        Intergovernmental relations,                                 guidance at 2 CFR 180.435?                        Suspension’’ (3 CFR 1986 Comp., p.
                                        Investigations, Manufactured homes,                                                                            189), Executive Order 12689,
                                        Reporting and recordkeeping                              Subpart E—[Reserved]                                  ‘‘Debarment and Suspension’’ (3 CFR
                                        requirements.                                            Subpart F—[Reserved]                                  1989 Comp., p. 235) and 31 U.S.C. 6101
                                        24 CFR Part 3500                                                                                               note (Section 2455, Pub. L. 103–355,
                                                                                                 Subpart G—Suspension
                                                                                                                                                       108 Stat. 3327).
                                          Consumer protection, Housing,                          2424.747 Who conducts fact finding for
                                        Mortgages, Reporting and recordkeeping                       HUD suspensions?                                  § 2424.20   Does this part apply to me?
                                        requirements.                                            Subpart H—Debarment                                      This part and, through this part,
                                        I Accordingly, for the reasons discussed                 2424.842 Who conducts fact finding for
                                                                                                                                                       pertinent portions of subparts A through
                                        in the preamble, HUD amends 2 CFR                            HUD debarments?                                   I of 2 CFR part 180 (see table at 2 CFR
                                        part 2424 and 24 CFR parts 5, 6, 8, 15,                                                                        180.100(b)), apply to you if you are a—
                                                                                                 Subpart I—Definitions                                    (a) Participant or principal in a
                                        21, 24, 25, 26, 84, 85, 91, 92, 103, 107,
                                        135, 200, 202, 203, 206, 245, 291, 401,                  2424.952 Hearing officer.                             ‘‘covered transaction’’ (see subpart B of
                                                                                                 2424.970 Nonprocurement transaction                   2 CFR part 180 and the definition of
                                        402, 570, 572, 585, 941, 954, 982, 983,                      (HUD supplement to governmentwide
                                        1000, 1003, 1005, 1006, 3282, and 3500                                                                         ‘‘nonprocurement transaction’’ at 2 CFR
                                                                                                     definition at 2 CFR 180.970).                     180.970, as supplemented by § 2424.970
                                        to read as follows:                                      2424.995 Principal (HUD supplement to
                                                                                                     governmentwide definition at 2 CFR
                                                                                                                                                       of this part);
                                        TITLE 2—GRANTS AND                                                                                                (b) Respondent in a HUD suspension
                                                                                                     180.995).
                                        AGREEMENTS                                               2424.1017 Ultimate beneficiary.                       or debarment action;
                                        SUBTITLE B—FEDERAL AGENCY                                                                                         (c) HUD debarment or suspension
                                                                                                 Subpart J—Limited Denial of Participation             official; or
                                        REGULATIONS FOR GRANTS AND
                                                                                                 2424.1100 What is a limited denial of                    (d) HUD grants officer, agreements
                                        AGREEMENTS                                                   participation?                                    officer, or other official authorized to
                                                                                                 2424.1105 Who may issue a limited denial              enter into any type of nonprocurement
                                        PART 2424—NONPROCUREMENT                                     of participation?
                                        DEBARMENT AND SUSPENSION;                                2424.1110 When may a HUD official issue
                                                                                                                                                       transaction that is a covered transaction.
                                        DEPARTMENT OF HOUSING AND                                    a limited denial of participation?                § 2424.30 What policies and procedures
                                        URBAN DEVELOPMENT
pwalker on PROD1PC71 with RULES3




                                                                                                 2424.1115 When does a limited denial of               must I follow?
                                                                                                     participation take effect?
                                        I 1. Under the authority of 42 U.S.C.                    2424.1120 How long may a limited denial                 The HUD policies and procedures that
                                        3535(d), add Chapter XXIV consisting of                      of participation last?                            you must follow are the policies and
                                        part 2424 to Subtitle B to read as                       2424.1125 How does a limited denial of                procedures specified in each applicable
                                        follows:                                                     participation start?                              section of the OMB guidance in subparts


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00005   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73488            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        A through I of 2 CFR part 180, as that                     (i) You may, but are not required to,               Appeals Judge authorized by HUD’s
                                        section is supplemented by the section                   check the Excluded Parties List System                Secretary or by the Secretary’s designee
                                        in this part with the same section                       (EPLS).                                               to conduct proceedings under this part.
                                        number. The contracts that are covered                     (ii) You may, but are not required to,
                                        transactions, for example, are specified                 collect a certification from that person.             § 2424.970 Nonprocurement transaction
                                                                                                                                                       (HUD supplement to governmentwide
                                        by section 220 of the OMB guidance                         (b) In the case of an employment
                                                                                                                                                       definition at 2 CFR 180.970).
                                        (i.e., 2 CFR 180.220), as supplemented                   contract, HUD does not require
                                        by section 220 in this part (i.e.,                       employers to check the EPLS prior to                    In the case of employment contracts
                                        § 2424.220). For any section of OMB                      making salary payments pursuant to                    that are covered transactions, each
                                        guidance in subparts A through I of 2                    that contract.                                        salary payment under the contract is a
                                        CFR 180 that has no corresponding                                                                              separate covered transaction.
                                                                                                 § 2424.332 What methods must I use to
                                        section in this part, HUD policies and                   pass requirements down to participants at             § 2424.995 Principal (HUD supplement to
                                        procedures are those in the OMB                          lower tiers with whom I intend to do                  governmentwide definition at 2 CFR
                                        guidance.                                                business?                                             180.995).
                                                                                                    To communicate the requirements to                    A person who has a critical influence
                                        Subpart A—General
                                                                                                 lower-tier participants, you must                     on, or substantive control over, a
                                        § 2424.137 Who in HUD may grant an                       include a term or condition in the                    covered transaction, whether or not
                                        exception to let an excluded person                      transaction requiring compliance with                 employed by the participant. Persons
                                        participate in a covered transaction?                    subpart C of the OMB guidance in 2 CFR                who have a critical influence on, or
                                          The Secretary or designee may grant                    part 180, as supplemented by this                     substantive control over, a covered
                                        an exception permitting an excluded                      subpart.                                              transaction may include, but are not
                                        person to participate in a particular                                                                          limited to:
                                        covered transaction. If the Secretary or                 Subpart D—Responsibilities of Federal                    (a) Loan officers;
                                        a designee grants an exception, the                      Agency Officials Regarding                               (b) Staff appraisers and inspectors;
                                        exception must be in writing and state                   Transactions                                             (c) Underwriters;
                                        the reason(s) for deviating from the                     § 2424.437 What method do I use to                       (d) Bonding companies;
                                        governmentwide policy in Executive                       communicate to a participant the                         (e) Borrowers under programs
                                        Order 12549.                                             requirements described in the OMB                     financed by HUD or with loans
                                                                                                 guidance at 2 CFR 180.435?                            guaranteed, insured, or subsidized
                                        Subpart B—Covered Transactions                              To communicate to a participant the                through HUD programs;
                                        § 2424.220 What contracts and                            requirements described in 2 CFR                          (f) Purchasers of properties with HUD-
                                        subcontracts, in addition to those listed in             180.435 of the OMB guidance, you must                 insured or Secretary-held mortgages;
                                        2 CFR 180.220, are covered transactions?                 include a term or condition in the                       (g) Recipients under HUD assistance
                                           In addition to the contracts covered                  transaction that requires the participant             agreements;
                                        under 2 CFR 180.220(b) of the OMB                        to: comply with subpart C of 2 CFR part                  (h) Ultimate beneficiaries of HUD
                                        guidance, this part applies to any                       180, as supplemented by subpart C of                  programs;
                                        contract, regardless of tier, that is                    this part, and include a similar term or                 (i) Fee appraisers and inspectors;
                                        awarded by a contractor, subcontractor,                  condition in lower-tier covered                          (j) Real estate agents and brokers;
                                        supplier, consultant, or its agent or                    transactions.                                            (k) Management and marketing
                                        representative in any transaction, if the                                                                      agents;
                                                                                                 Subpart E—[Reserved]                                     (l) Accountants, consultants,
                                        contract is to be funded or provided by
                                        HUD under a covered nonprocurement                                                                             investment bankers, architects,
                                                                                                 Subpart F—[Reserved]                                  engineers, and attorneys who are in a
                                        transaction and the amount of the
                                        contract is expected to equal or exceed                                                                        business relationship with participants
                                                                                                 Subpart G—Suspension                                  in connection with a covered
                                        $25,000. This extends the coverage of
                                        the HUD nonprocurement suspension                        § 2424.747 Who conducts fact finding for              transaction under a HUD program;
                                        and debarment requirements to all                        HUD suspensions?                                         (m) Contractors involved in the
                                        lower tiers of subcontracts under                          In all HUD suspensions, the official                construction or rehabilitation of
                                        covered nonprocurement transactions,                     who shall conduct additional                          properties financed by HUD, with HUD-
                                        as permitted under the OMB guidance at                   proceedings where disputed material                   insured loans or acquired properties,
                                        2 CFR 180.220(c) (see optional lower-                    facts are challenged shall be a hearing               including properties held by HUD as
                                        tier coverage in the figure in the                       officer.                                              mortgagee-in-possession;
                                        Appendix to 2 CFR part 180).                                                                                      (n) Closing agents;
                                                                                                 Subpart H—Debarment                                      (o) Turnkey developers of projects
                                        Subpart C—Responsibilities of                                                                                  financed by or with financing insured
                                        Participants Regarding Transactions                      § 2424.842 Who conducts fact finding for
                                                                                                 HUD debarments?
                                                                                                                                                       by HUD;
                                        § 2424.300 What must I do before I enter                                                                          (p) Title companies;
                                                                                                   In all HUD debarments, the official
                                        into a covered transaction with another                                                                           (q) Escrow agents;
                                                                                                 who shall conduct additional
                                        person at the next lower tier (HUD                                                                                (r) Project owners;
                                        supplement to governmentwide definition at
                                                                                                 proceedings where disputed material
                                                                                                                                                          (s) Administrators of hospitals,
                                        2 CFR 180.300)?                                          facts are challenged shall be a hearing
                                                                                                                                                       nursing homes, and projects for the
                                                                                                 officer.
                                           (a) You, as a participant, are                                                                              elderly financed or insured by HUD;
pwalker on PROD1PC71 with RULES3




                                        responsible for determining whether                      Subpart I—Definitions                                 and
                                        you are entering into a covered                                                                                   (t) Developers, sellers, or owners of
                                        transaction with an excluded or                          § 2424.952    Hearing officer.                        property financed with loans insured
                                        disqualified person. You may decide the                   Hearing Officer means an                             under Title I or Title II of the National
                                        method by which you do so.                               Administrative Law Judge or Office of                 Housing Act.


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00006   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                        73489

                                        § 2424.1017      Ultimate beneficiary.                      (9) The person has violated any law,                 (d) Of the right to request, in writing,
                                          Ultimate beneficiaries of HUD                          regulation, or procedure relating to the              within 30 days of receipt of the notice,
                                        programs include, but are not limited to,                application for financial assistance,                 a conference under § 2424.1130; and
                                        subsidized tenants and subsidized                        insurance, or guarantee, or to the                      (e) Of the right to contest the limited
                                        mortgagors, such as those assisted under                 performance of obligations incurred                   denial of participation under
                                        Section 8 Housing Assistance Payment                     pursuant to a grant of financial                      § 2424.1130.
                                        contracts, by Section 236 Rental                         assistance or pursuant to a conditional
                                                                                                                                                       § 2424.1130 How may I contest my limited
                                        Assistance, or by Rent Supplement                        or final commitment to insure or                      denial of participation?
                                        payments.                                                guarantee;
                                                                                                    (10) The person has made or procured                  (a) Within 30 days after receiving a
                                                                                                                                                       notice of limited denial of participation,
                                        Subpart J—Limited Denial of                              to be made any false statement for the
                                                                                                                                                       you may request a conference with the
                                        Participation                                            purpose of influencing in any way an
                                                                                                                                                       official who issued such notice. The
                                                                                                 action of the Department; or
                                        § 2424.1100 What is a limited denial of                     (11) Imposition of a limited denial of             conference shall be held within 15 days
                                        participation?
                                                                                                 participation by any other HUD office.                after the Department’s receipt of the
                                           A limited denial of participation                        (b) Filing of a criminal Indictment or             request for a conference, unless you
                                        excludes a specific person from                          Information shall constitute adequate                 waive this time limit. The official or
                                        participating in a specific program, or                  evidence for the purpose of limited                   designee who imposed the sanction
                                        programs, within a HUD field office’s                    denial of participation actions. The                  shall preside. At the conference, you
                                        geographic jurisdiction, for a specific                  Indictment or Information need not be                 may appear with a representative and
                                        period of time. A limited denial of                      based on offenses against HUD.                        may present all relevant information
                                        participation is normally issued by a                       (c) Imposition of a limited denial of              and materials to the official or designee.
                                        HUD field office, but may be issued by                   participation by any other HUD office                 Within 20 days after the conference, or
                                        a Headquarters office. The decision to                   shall constitute adequate evidence for a              within 20 days after any agreed-upon
                                        impose a limited denial of participation                 concurrent limited denial of                          extension of time for submission of
                                        is discretionary and based on the best                   participation. Where such a concurrent                additional materials, the official or
                                        interests of the federal government.                     limited denial of participation is                    designee shall, in writing, advise you of
                                                                                                 imposed, participation may be restricted              the decision to terminate, modify, or
                                        § 2424.1105 Who may issue a limited
                                                                                                 on the same basis without the need for                affirm the limited denial of
                                        denial of participation?                                                                                       participation. If all or a portion of the
                                                                                                 an additional conference or further
                                           The Secretary designates HUD                          hearing.                                              remaining period of exclusion is
                                        officials who are authorized to impose                      (d) An affiliate or organizational                 affirmed, the notice of affirmation shall
                                        a limited denial of participation,                       element may be included in a limited                  advise you of the opportunity to contest
                                        affecting any participant and/or their                   denial of participation solely on the                 the notice and to request a hearing
                                        affiliates, except mortgagees approved                   basis of its affiliation, and regardless of           before a Departmental Hearing Officer.
                                        by the Federal Housing Administration                    its knowledge of or participation in the              You have 30 days after receipt of the
                                        (FHA).                                                   acts providing cause for the sanction.                notice of affirmation to request this
                                                                                                 The burden of proving that a particular               hearing. If the official or designee does
                                        § 2424.1110 When may a HUD official                                                                            not issue a decision within the 20-day
                                        issue a limited denial of participation?                 affiliate or organizational element is
                                                                                                 currently responsible and not controlled              period, you may contest the sanction
                                           (a) An authorized HUD official may                                                                          before a Departmental Hearing Officer.
                                                                                                 by the primary sanctioned party (or by
                                        issue a limited denial of participation                                                                        Again, you have 30 days from the
                                                                                                 an entity that itself is controlled by the
                                        against a person, based upon adequate                                                                          expiration of the 20-day period to
                                                                                                 primary sanctioned party) is on the
                                        evidence of any of the following causes:                                                                       request this hearing. If you request a
                                                                                                 affiliate or organizational element.
                                           (1) Approval of an applicant for                                                                            hearing before the Departmental Hearing
                                        insurance would constitute an                            § 2424.1115 When does a limited denial of             Officer, you must submit your request to
                                        unsatisfactory risk;                                     participation take effect?                            the Debarment Docket Clerk,
                                           (2) There are irregularities in a                        A limited denial of participation is               Department of Housing and Urban
                                        person’s past performance in a HUD                       effective immediately upon issuance of                Development, 451 Seventh Street, SW.,
                                        program;                                                 the notice.                                           B–133 Portals 200, Washington DC
                                           (3) The person has failed to maintain                                                                       20410–0500.
                                        the prerequisites of eligibility to                      § 2424.1120 How long may a limited denial                (b) You may skip the conference with
                                                                                                 of participation last?
                                        participate in a HUD program;                                                                                  the official and you may request a
                                           (4) The person has failed to honor                      A limited denial of participation may               hearing before a Departmental Hearing
                                        contractual obligations or to proceed in                 remain in effect up to 12 months.                     Officer. This must also be done within
                                        accordance with contract specifications                  § 2424.1125 How does a limited denial of              30 days after receiving a notice of
                                        or HUD regulations;                                      participation start?                                  limited denial of participation. If you
                                           (5) The person has failed to satisfy,                   A limited denial of participation is                opt to have a hearing before a
                                        upon completion, the requirements of                     made effective by providing the person,               Departmental Hearing Officer, you must
                                        an assistance agreement or contract;                     and any specifically named affiliate,                 submit your request to the Debarment
                                           (6) The person has deficiencies in                    with notice:                                          Docket Clerk, Department of Housing
                                        ongoing construction projects;                             (a) That the limited denial of                      and Urban Development, 451 Seventh
                                           (7) The person has falsely certified in               participation is being imposed;                       Street, SW., B–133 Portals 200,
                                        connection with any HUD program,                           (b) Of the cause(s) under § 2424.1110               Washington DC 20410–0500. The
pwalker on PROD1PC71 with RULES3




                                        whether or not the certification was                     for the sanction;                                     hearing before the Departmental Hearing
                                        made directly to HUD;                                      (c) Of the potential effect of the                  Officer is more formal than the
                                           (8) The person has committed any act                  sanction, including the length of the                 conference before the sanctioning
                                        or omission that would be cause for                      sanction and the HUD program(s) and                   official described above. The
                                        debarment under 2 CFR 180.800;                           geographic area affected by the sanction;             Departmental Hearing Officer will


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00007   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73490            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        conduct the hearing in accordance with                   § 2424.1145 May HUD impute the conduct                pursuant to 2 CFR 180.720, all
                                        24 CFR part 26, subpart A. The                           of one person to another in a limited denial          proceedings in the limited denial of
                                        Departmental Hearing Officer will issue                  of participation?                                     participation, including discovery, are
                                        findings of fact and make a                                For purposes of determining a limited               automatically stayed.
                                        recommended decision. The sanctioning                    denial of participation, HUD may                         (b) If you do not contest the proposed
                                        official will then make a final decision,                impute conduct as follows:                            debarment pursuant to 2 CFR 180.815,
                                        as promptly as possible, after the                         (a) Conduct imputed from an                         or the suspension pursuant to 2 CFR
                                        Departmental Hearing Officer’s                           individual to an organization. HUD may                180.720, the final imposition of the
                                        recommended decision is issued. The                      impute the fraudulent, criminal, or                   debarment or suspension shall also
                                        sanctioning official may reject the                      other improper conduct of any officer,                constitute a final decision with respect
                                        recommended decision or any findings                     director, shareholder, partner,                       to the limited denial of participation, to
                                        of fact, only after specifically                         employee, or other individual                         the extent that the debarment or
                                        determining that the decision or any of                  associated with an organization, to that              suspension is based on the same
                                        the facts are arbitrary, capricious, or                  organization when the improper                        transaction(s) or conduct as the limited
                                        clearly erroneous.                                       conduct occurred in connection with                   denial of participation.
                                           (c) In deciding whether to terminate,                 the individual’s performance of duties                   (c) If you contest the proposed
                                        modify, or affirm a limited denial of                    for or on behalf of that organization, or             debarment pursuant to 2 CFR 180.815,
                                                                                                 with the organization’s knowledge,                    or the suspension pursuant to 2 CFR
                                        participation, the Departmental official
                                                                                                 approval, or acquiescence. The                        180.720, then:
                                        or designee may consider the factors
                                                                                                 organization’s acceptance of the benefits                (1) Those parts of the limited denial
                                        listed at 2 CFR 180.860. The                                                                                   of participation and the debarment or
                                        Departmental Hearing Officer may also                    derived from the conduct is evidence of
                                                                                                 knowledge, approval, or acquiescence.                 suspension based on the same
                                        consider the factors listed at 2 CFR                                                                           transaction(s) or conduct, as determined
                                        180.860 in making any recommended                          (b) Conduct imputed from an
                                                                                                 organization to an individual or                      by the debarring or suspending official,
                                        decision.                                                                                                      shall be immediately consolidated
                                                                                                 between individuals. HUD may impute
                                        § 2424.1135 Do Federal agencies                          the fraudulent, criminal, or other                    before the debarring or suspending
                                        coordinate limited denial of participation               improper conduct of any organization to               official;
                                        actions?                                                 an individual, or from one individual to                 (2) Proceedings under the
                                                                                                 another individual, if the individual to              consolidated portions of the limited
                                          Federal agencies do not coordinate
                                                                                                 whom the improper conduct is imputed                  denial of participation shall be stayed
                                        limited denial of participation actions.
                                                                                                 participated in, had knowledge of, or                 before the hearing officer until the
                                        As stated in § 2424.1100, a limited
                                                                                                 had reason to know of the improper                    suspending or debarring official makes
                                        denial of participation is a HUD-specific
                                                                                                 conduct.                                              a determination as to whether the
                                        action and applies only to HUD
                                                                                                   (c) Conduct imputed from one                        consolidated matters should be referred
                                        activities.
                                                                                                 organization to another organization.                 to a hearing officer. Such a
                                        § 2424.1140 What is the scope of a limited               HUD may impute the fraudulent,                        determination must be made within 90
                                        denial of participation?                                 criminal, or other improper conduct of                days of the date of the issuance of the
                                          The scope of a limited denial of                       one organization to another organization              suspension or proposed debarment,
                                        participation is as follows:                             when the improper conduct occurred in                 unless the suspending/debarring official
                                                                                                 connection with a partnership, joint                  extends the period for good cause.
                                          (a) A limited denial of participation
                                                                                                 venture, joint application, association,                 (i) If the suspending or debarring
                                        generally extends only to participation
                                                                                                 or similar arrangement, or when the                   official determines that there is a
                                        in the program under which the cause
                                                                                                 organization to whom the improper                     genuine dispute as to material facts
                                        arose. A limited denial of participation
                                                                                                 conduct is imputed has the power to                   regarding the consolidated matter, the
                                        may, at the discretion of the authorized
                                                                                                 direct, manage, control, or influence the             entire consolidated matter will be
                                        official, extend to other programs,
                                                                                                 activities of the organization responsible            referred to the hearing officer hearing
                                        initiatives, or functions within the
                                                                                                 for the improper conduct. Acceptance of               the limited denial of participation, for
                                        jurisdiction of an Assistant Secretary.
                                                                                                 the benefits derived from the conduct is              additional proceedings pursuant to 2
                                        The authorized official, however, may
                                                                                                 evidence of knowledge, approval, or                   CFR 180.750 or 180.845.
                                        determine that where the sanction is                                                                              (ii) If the suspending or debarring
                                        based on an indictment or conviction,                    acquiescence.
                                                                                                                                                       official determines that there is no
                                        the sanction shall apply to all programs                 § 2424.1150 What is the effect of a                   dispute as to material facts regarding the
                                        throughout HUD.                                          suspension or debarment on a limited                  consolidated matter, jurisdiction of the
                                          (b) For purposes of this subpart,                      denial of participation?                              hearing officer under 2 CFR part 2424,
                                        participation includes receipt of any                      If you have submitted a request for a               subpart J, to hear those parts of the
                                        benefit or financial assistance through                  hearing pursuant to § 2424.1130 of this               limited denial of participation based on
                                        grants or contractual arrangements;                      subpart, and you also receive, pursuant               the same transaction[s] or conduct as
                                        benefits or assistance in the form of loan               to subpart G or H of this part, a notice              the debarment or suspension, as
                                        guarantees or insurance; and awards of                   of proposed debarment or suspension                   determined by the debarring or
                                        procurement contracts.                                   that is based on the same transaction(s)              suspending official, will be transferred
                                          (c) The sanction may be imposed for                    or the same conduct as the limited                    to the debarring or suspending official,
                                        a period not to exceed 12 months, and                    denial of participation, as determined                and the hearing officer responsible for
                                        shall be effective within the geographic                 by the debarring or suspending official,              hearing the limited denial of
                                        jurisdiction of the office imposing it,                  the following rules shall apply:                      participation shall transfer the
pwalker on PROD1PC71 with RULES3




                                        unless the sanction is imposed by an                       (a) During the 30-day period after you              administrative record to the debarring or
                                        Assistant Secretary or Deputy Assistant                  receive a notice of proposed debarment                suspending official.
                                        Secretary, in which case the sanction                    or suspension, during which you may                      (3) The suspending or debarring
                                        may be imposed on either a nationwide                    elect to contest the debarment under 2                official shall hear the entire
                                        or a more restricted basis.                              CFR 180.815, or the suspension                        consolidated case under the procedures


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00008   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                             73491

                                        governing suspensions and debarments,                    PART 6—NONDISCRIMINATION IN                           has received the information from a
                                        and shall issue a final decision as to                   PROGRAMS AND ACTIVITIES                               potential purchaser and has been
                                        both the limited denial of participation                 RECEIVING ASSISTANCE UNDER                            notified by that entity of its obligations
                                        and the suspension or debarment.                         TITLE I OF THE HOUSING AND                            under paragraph (b) of this section),
                                                                                                 COMMUNITY DEVELOPMENT ACT OF                          who discloses information from form
                                        § 2424.1155 What is the effect of a limited              1978                                                  HUD–92410 in violation of this section,
                                        denial of participation on a suspension or                                                                     may be subject to sanctions under 2 CFR
                                        a debarment?                                             I 4. The authority citation for part 6                part 2424.
                                          The imposition of a limited denial of                  continues to read as follows:
                                        participation does not affect the right of                 Authority: 42 U.S.C. 3535(d); 42 U.S.C.             PART 21—GOVERNMENTWIDE
                                                                                                 5309                                                  REQUIREMENTS FOR DRUG-FREE
                                        the Department to suspend or debar any
                                                                                                                                                       WORKPLACE (GRANTS)
                                        person under this part.                                  I 5. Revise § 6.12(a)(4) to read as
                                        § 2424.1160 May a limited denial of
                                                                                                 follows:                                              I 10. The authority citation for part 21
                                        participation be terminated before the term              § 6.12   Procedure for effecting compliance.          continues to read as follows:
                                        of the limited denial of participation                                                                           Authority: 41 U.S.C. 701; 42 U.S.C.
                                                                                                   (a) * * *
                                        expires?                                                                                                       3535(d).
                                                                                                   (4) Take such other actions as may be
                                          If the cause for the limited denial of                 provided by law, including, but not                   I 11. Revise § 21.510(c) to read as
                                        participation is resolved before the                     limited to, the initiation of proceedings             follows:
                                        expiration of the 12-month period, the                   under 2 CFR part 2424 or any applicable
                                        official who imposed the sanction may                    proceeding under State or local law.                  § 21.510 What actions will the Federal
                                        terminate it.                                            *     *     *     *     *                             government take against a recipient
                                                                                                                                                       determined to have violated this part?
                                        § 2424.1165 How is a limited denial of                   PART 8—NONDISCRIMINATION                              *     *    *     *    *
                                        participation reported?                                  BASED ON HANDICAP IN FEDERALLY                          (c) Suspension or debarment of the
                                          When a limited denial of participation                 ASSISTED PROGRAMS AND                                 recipient under 2 CFR part 2424, for a
                                        has been made final, or the period for                   ACTIVITIES OF THE DEPARTMENT OF                       period not to exceed five years.
                                                                                                 HOUSING AND URBAN
                                        requesting a conference pursuant to                                                                            I 12. Revise § 21.605(a)(2) to read as
                                                                                                 DEVELOPMENT
                                        § 2424.1130 has expired without receipt                                                                        follows:
                                        of such a request, the official imposing                 I 6. The authority citation for part 8
                                        the limited denial of participation shall                continues to read as follows:                         § 21.605    Award.
                                        notify the Director of the Compliance                      Authority: 29 U.S.C. 794; 42 U.S.C. 3535(d)         *     *     *    *     *
                                        Division in the Departmental                             and 5309.                                               (a) * * *
                                        Enforcement Center of the scope of the
                                        limited denial of participation.                         I 7. Revise § 8.57(a)(2) to read as                     (2) A block grant or a grant in an
                                                                                                 follows:                                              entitlement program, whether or not the
                                        TITLE 24—HOUSING AND URBAN                                                                                     grant is exempted from coverage under
                                        DEVELOPMENT                                              § 8.57   Procedure for effecting compliance.          the governmentwide rule 24 CFR part 85
                                                                                                   (a) * * *                                           that implements OMB Circular A–102
                                        SUBTITLE B—REGULATIONS                                     (2) The initiation of debarment                     and specifies uniform administrative
                                        RELATING TO HOUSING AND URBAN                            proceedings pursuant to 2 CFR part                    requirements.
                                        DEVELOPMENT                                              2424; and                                             *     *     *    *     *
                                                                                                 *     *    *      *     *
                                        PART 5—GENERAL HUD PROGRAM                                                                                     I 13–14. Revise Part 24 to read as
                                        REQUIREMENTS; WAIVERS                                    PART 15—PUBLIC ACCESS TO HUD                          follows:
                                                                                                 RECORDS UNDER THE FREEDOM OF
                                        I 2. The authority citation for part 5                   INFORMATION ACT AND TESTIMONY                         PART 24—GOVERNMENTWIDE
                                        continues to read as follows:                            AND PRODUCTION OF INFORMATION                         DEBARMENT AND SUSPENSION
                                                                                                 BY HUD EMPLOYEES                                      (NONPROCUREMENT)
                                          Authority: 42 U.S.C. 1437a, 1437c, 1437d,
                                        1437f, 1437n, 3535(d), and Sec. 327, Pub. L.
                                                                                                 I 8. The authority citation for part 15                   Authority: 42 U.S.C. 3535(d).
                                        109–115, 119 Stat. 2936.
                                                                                                 continues to read as follows:
                                                                                                                                                       § 24.1 Debarment and Suspension
                                        I 3. Revise § 5.105(c) and (d) to read as                  Authority: 42 U.S.C. 3535(d). Subpart A             (Nonprocurement).
                                        follows:                                                 also issued under 5 U.S.C. 552. Section
                                                                                                 15.107 also issued under E.O. 12958, 60 FR              The policies, procedures, and
                                        § 5.105   Other federal requirements.                    19825, 3 CFR Comp., p. 333. Subparts C and            requirements for debarment,
                                        *     *     *     *   *                                  D also issued under 5 U.S.C. 301.                     suspension, and limited denial of
                                                                                                                                                       participation are set forth in 2 CFR part
                                          (c) Debarred, suspended, or ineligible                 I 9. Revise § 15.109(d) to read as
                                                                                                                                                       2424.
                                        contractors and participants. The                        follows:
                                        prohibitions at 2 CFR part 2424 on the                   § 15.109 How will HUD respond to a                    PART 25—MORTGAGEE REVIEW
                                        use of debarred, suspended, or ineligible                request for information from form HUD–                BOARD
                                        contractors and participants.                            92410 (Statement of Profit and Loss)?
pwalker on PROD1PC71 with RULES3




                                          (d) Drug-Free Workplace. The Drug-                     *     *   *     *     *                               I 15. The authority citation for part 25
                                        Free Workplace Act of 1988 (41 U.S.C.                      (d) What sanctions are available for                continues to read as follows:
                                        701, et seq.) and HUD’s implementing                     improper disclosure of such                             Authority: 12 U.S.C. 1708(c), 1708(d),
                                        regulations at 24 CFR part 21.                           information? An eligible potential                    1709(s), 1715(b) and 1715(f)–14; 42 U.S.C.
                                                                                                 purchaser or a potential investor (who                3535(d).



                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00009   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73492            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        § 25.2   [Amended]                                       of the determination. The notice shall                proposed procurement. Consideration
                                        I  16. In § 25.2, revise the reference to                state the reasons for the proposed or                 shall be given to such matters as
                                        ‘‘part 24 of this subtitle A’’ to read ‘‘2               imposed action, except where general                  contractor integrity; compliance with
                                        CFR part 2424.’’                                         terms are permitted by 2 CFR part 2424.               public policy, including, where
                                        I 17. Revise § 25.9(n) to read as follows:
                                                                                                 The notice shall inform the party of any              applicable, Section 3 of the Housing and
                                                                                                 right to a hearing to challenge the                   Urban Development Act of 1968 (12
                                        § 25.9 Grounds for an administrative                     determination, and the manner and time                U.S.C. 1701u); record of past
                                        action.                                                  in which to request such a hearing. A                 performance; and financial and
                                        *      *    *      *    *                                supplemental notice may be issued, at                 technical resources or accessibility to
                                           (n) Employing or retaining:                           the discretion of the initiating official, to         other necessary resources. In certain
                                           (1) An officer, partner, director, or                 add to or modify the reasons for the                  circumstances, contracts with certain
                                        principal at such time when such                         action.                                               parties are restricted by implementation
                                        person was suspended, debarred,                                                                                of Executive Orders 12549 and 12689,
                                        ineligible, or subject to a limited denial               PART 84—UNIFORM ADMINISTRATIVE                        ‘‘Debarment and Suspension,’’ at 2 CFR
                                        of participation under 2 CFR part 2424                   REQUIREMENTS FOR GRANTS AND                           part 2424.
                                        or otherwise prohibited from                             AGREEMENTS WITH INSTITUTIONS                          *     *     *     *     *
                                        participation in HUD programs, where                     OF HIGHER EDUCATION, HOSPITALS,
                                        the mortgagee knew or should have                        AND OTHER NON-PROFIT                                  I 25. Revise § 84.62(d) to read as
                                        known of the prohibition;                                ORGANIZATIONS                                         follows:
                                           (2) An employee who is not an officer,
                                        partner, director, or principal and who                  I 21. The authority citation for part 84              § 84.62    Enforcement.
                                        is or will be working on HUD/FHA                         continues to read as follows:                         *     *     *     *     *
                                        program matters at a time when such                          Authority: 42 U.S.C. 3535(d).                       (d) Relationship to debarment and
                                        person was suspended, debarred,                                                                                suspension. The enforcement remedies
                                                                                                 I  22. In § 84.2, revise the definition of            identified in this section, including
                                        ineligible, or subject to a limited denial               ‘‘Suspension’’ to read as follows:
                                        of participation under 2 CFR part 2424                                                                         suspension and termination, do not
                                        or otherwise prohibited from                             § 84.2    Definitions.                                preclude a recipient from being subject
                                        participation in HUD programs, where                     *      *    *     *     *                             to debarment and suspension under
                                        the mortgagee knew or should have                           Suspension means an action by HUD                  HUD’s regulations at 2 CFR part 2424
                                        known of the prohibition;                                that temporarily withdraws HUD                        (see § 84.13).
                                        *      *    *      *    *                                sponsorship under an award, pending                   I 26. Revise § 84.84(e)(4) to read as
                                                                                                 corrective action by the recipient or                 follows:
                                        PART 26—HEARING PROCEDURES                               pending a decision to terminate the
                                                                                                                                                       § 84.84    Procurement standards.
                                                                                                 award by HUD. Suspension of an award
                                        I 18. The authority citation for part 26                 is a separate action from suspensions                 *     *     *     *     *
                                        continues to read as follows:                            under HUD regulations implementing                      (e) * * *
                                            Authority: 42 U.S.C. 3535(d).                        E.O. 12549 and E.O. 12689, ‘‘Debarment                  (4) Contracts shall be made only with
                                                                                                 and Suspension,’’ at 2 CFR part 2424.                 responsible contractors who possess the
                                        I   19. Revise § 26.1 to read as follows:                                                                      potential ability to perform successfully
                                                                                                 *      *    *     *     *
                                        § 26.1   Purpose.                                                                                              under the terms and conditions of the
                                                                                                 I 23. Revise § 84.13 to read as follows:
                                                                                                                                                       proposed procurement. Consideration
                                          This part sets forth rules of procedure
                                                                                                 § 84.13 Debarment and suspension; Drug-               shall be given to such matters as
                                        in certain proceedings of the
                                                                                                 Free Workplace.                                       contractor integrity; compliance with
                                        Department of Housing and Urban
                                                                                                   (a) Recipients and subrecipients shall              public policy, including, where
                                        Development presided over by a hearing
                                        officer. These rules of procedure apply                  comply with the governmentwide                        applicable, Section 3 of the Housing and
                                                                                                 nonprocurement debarment and                          Urban Development Act of 1968 (12
                                        to hearings with respect to
                                                                                                 suspension requirements in 2 CFR part                 U.S.C. 1701u); record of past
                                        determinations by the Multifamily
                                                                                                 2424. These governmentwide                            performance; and financial and
                                        Participation Review Committee
                                                                                                 requirements restrict subawards and                   technical resources or accessibility to
                                        pursuant to 24 CFR part 200, subpart H,
                                                                                                 contracts with certain parties that are               other necessary resources. In certain
                                        to hearings conducted pursuant to
                                                                                                 debarred, suspended, or otherwise                     circumstances, contracts with certain
                                        referrals by debarring or suspending
                                                                                                 excluded from or ineligible for                       parties are restricted, as set forth at 2
                                        officials under 2 CFR part 2424, and to
                                                                                                 participation in federal assistance                   CFR part 2424.
                                        hearings conducted pursuant to referrals
                                        by a hearing official under 24 CFR part                  programs or activities.                               *     *     *     *     *
                                        25, unless such regulations at 2 CFR                       (b) Recipients and subrecipients shall              I 27. Revise § 84.86(b)(4) to read as
                                        part 2424, 24 CFR parts 25 or 200                        comply with the requirements of the                   follows:
                                        provide otherwise. They also apply in                    Drug-Free Workplace Act of 1988 (42
                                        any other case where a hearing is                        U.S.C. 701), as set forth at 24 CFR part              § 84.86    Termination and enforcement.
                                        required by statute or regulation, to the                21.                                                   *     *     *     *     *
                                        extent that rules adopted under such                     I 24. Revise § 84.44(d) to read as                      (b) * * *
                                        statute or regulation are not                            follows:                                                (4) Relationship to debarment and
                                        inconsistent.                                                                                                  suspension. The enforcement remedies
                                        I 20. Revise § 26.9 to read as follows:
                                                                                                 § 84.44    Procurement procedures.                    identified in this section, including
pwalker on PROD1PC71 with RULES3




                                                                                                 *     *    *      *     *                             suspension and termination, do not
                                        § 26.9   Notice of administrative action.                  (d) Contracts shall be made only with               preclude a recipient from being subject
                                          In every case, there shall be a notice                 responsible contractors who possess the               to debarment and suspension under
                                        of administrative action. The notice                     potential ability to perform successfully             HUD’s regulations at 2 CFR part 2424
                                        shall be in writing and inform the party                 under the terms and conditions of the                 (see § 84.13).


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00010   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM    27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                           73493

                                        Appendix A to Part 84—[Amended]                          § 91.225    [Amended]                                 PART 107—NONDISCRIMINATION AND
                                                                                                                                                       EQUAL OPPORTUNITY IN HOUSING
                                        I28. Remove paragraphs 8 and 9 from                      I 34. Remove § 91.225(a)(3) and
                                                                                                                                                       UNDER EXECUTIVE ORDER 11063
                                        Appendix A.                                              redesignate paragraphs (a)(4), (5), (6),
                                                                                                 (7), and (8) as (a)(3), (4), (5), (6), and (7),       I 42. The authority citation for part 107
                                        PART 85—ADMINISTRATIVE                                   respectively.                                         continues to read as follows:
                                        REQUIREMENTS FOR GRANTS AND
                                        COOPERATIVE AGREEMENTS TO                                § 91.325    [Amended]                                   Authority: 42 U.S.C. 3535(d); E.O. 11063,
                                        STATE, LOCAL, AND FEDERALLY                                                                                    27 FR 11527, 3 CFR, 1958–1963 Comp., p.
                                                                                                 I 35. Remove § 91.325(a)(3) and                       652; E.O. 12892, 59 FR 2939, 3 CFR, 1994
                                        RECOGNIZED INDIAN TRIBAL
                                                                                                 redesignate paragraphs (a)(4), (5), (6),              Comp., p. 849.
                                        GOVERNMENTS
                                                                                                 (7), and (8) as (a)(3), (4), (5), (6), and (7),
                                                                                                 respectively.                                         I 43. Revise § 107.60(b) to read as
                                        I 29. The authority citation for part 85                                                                       follows:
                                        continues to read as follows:                            § 91.425    [Amended]
                                            Authority: 42 U.S.C. 3535(d).                                                                              § 107.60   Sanctions and penalties.
                                                                                                 I 36. Remove § 91.425(a)(1)(iii) and                  *      *     *     *     *
                                        I  30. In § 85.3, revise the definition of               redesignate paragraphs (a)(1)(iv), (v),                  (b) Such sanctions as are specified by
                                        ‘‘Suspension’’ to read as follows:                       (vi), (vii), and (viii) as (a)(1)(iii), (iv), (v),    E.O. 11063, the contract through which
                                                                                                 (vi), and (vii), respectively.                        federal assistance is provided, and such
                                        § 85.3    Definitions.
                                                                                                                                                       sanctions as are specified by the rules or
                                        *     *     *     *    *                                 PART 92—HOME INVESTMENT                               regulations of the Department governing
                                          Suspension means, depending on the                     PARTNERSHIP PROGRAM                                   the program under which federal
                                        context, either temporary withdrawal of                                                                        assistance to the project is provided
                                        the authority to obligate grant funds                    I 37. The authority citation for part 92              shall be applied in accordance with the
                                        pending corrective action by the grantee                 continues to read as follows:                         relevant regulations. Actions that may
                                        or subgrantee or a decision to terminate                                                                       be taken include: cancellation or
                                                                                                   Authority: 42 U.S.C. 3535(d) and 12701–
                                        the grant, or an action taken by a                       12839.                                                termination, in whole or in part, of the
                                        suspending official in accordance with                                                                         contract or agreement; refusal to
                                        2 CFR part 2424, to immediately                          § 92.61    [Amended]                                  approve a lender or withdrawal of
                                        exclude a person from participating in                                                                         approval; or a determination of
                                        grant transactions for a period, pending                 I 38. Remove § 92.61(c)(6) and
                                                                                                 redesignate paragraph (c)(7) as                       ineligibility, suspension, or debarment
                                        completion of an investigation and such                                                                        from any further assistance or contracts;
                                        legal or debarment proceedings as may                    paragraph (c)(6).
                                                                                                                                                       provided, however, that sanctions of
                                        ensue.                                                   I 39. In § 92.508, revise paragraph                   debarment, suspension, and ineligibility
                                        *     *     *     *    *                                 (a)(7)(viii) to read as follows:                      are subject to the Department’s
                                        I 31. Revise § 85.35 to read as follows:                                                                       regulations under 2 CFR part 2424, and,
                                                                                                 § 92.508    Recordkeeping.
                                                                                                                                                       further, that no sanction under section
                                        § 85.35 Subawards to debarred and                          (a) * * *                                           302 (a), (b), and (c) of Executive Order
                                        suspended parties.                                                                                             11063 shall be applied by the Assistant
                                                                                                   (7) * * *
                                           Grantees and subgrantees must not                                                                           Secretary for Fair Housing and Equal
                                        make any award or permit any award                         (viii) Records demonstrating                        Opportunity without the concurrence of
                                        (subgrant or contract) at any tier to any                compliance with debarment and                         the Secretary.
                                        party that is debarred or suspended or                   suspension requirements in 2 CFR part
                                                                                                                                                       *      *     *     *     *
                                        is otherwise excluded from or ineligible                 2424.
                                        for participation in federal assistance                  *     *     *    *   *                                PART 135—ECONOMIC
                                        programs subject to 2 CFR part 2424.                                                                           OPPORTUNITIES FOR LOW-AND VERY
                                        I 32. Revise § 85.43(d) to read as                       PART 103—FAIR HOUSING                                 LOW-INCOME PERSONS
                                        follows:                                                 COMPLAINT PROCESS
                                                                                                                                                       I 44. The authority citation for part 135
                                        § 85.43    Enforcement.                                  I 40. The authority citation for part 103             continues to read as follows:
                                        *     *     *     *     *                                continues to read as follows:                           Authority: 12 U.S.C. 1701u; 42 U.S.C.
                                          (d) Relationship to debarment and                          Authority: 42 U.S.C. 3535(d), 3600–3619.          3535(d).
                                        suspension. The enforcement remedies
                                        identified in this section, including                    I 41. Revise § 103.510(b) to read as                  I 45. Revise § 135.72(b) to read as
                                        suspension and termination, do not                       follows:                                              follows:
                                        preclude a grantee or subgrantee from
                                                                                                                                                       § 135.72 Cooperation in achieving
                                        being subject to 2 CFR part 2424 (see                    § 103.510    Other action by HUD.
                                                                                                                                                       compliance.
                                        § 85.35).                                                *     *      *    *     *
                                                                                                                                                       *     *    *      *     *
                                        PART 91—CONSOLIDATED                                       (b) Take appropriate steps to initiate                (b) The recipient shall refrain from
                                        SUBMISSIONS FOR COMMUNITY                                proceedings leading to the debarment of               entering into a contract with any
                                        PLANNING AND DEVELOPMENT                                 the respondent under 2 CFR part 2424,                 contractor after notification to the
                                        PROGRAMS                                                 or initiate other actions leading to the              recipient by HUD that the contractor has
                                                                                                 imposition of administrative sanctions,               been found in violation of the
pwalker on PROD1PC71 with RULES3




                                        I 33. The authority citation for part 91                 where HUD determines that such                        regulations in this part. The provisions
                                        continues to read as follows:                            actions are necessary to the effective                of 2 CFR part 2424 apply to the
                                          Authority: 42 U.S.C. 3535(d), 3601–3619,
                                                                                                 operation and administration of federal               employment, engagement of services,
                                        5301–5315, 11331–11388, 12701–12711,                     programs or activities.                               awarding of contracts, or funding of any
                                        12741–12756, and 12901–12912.                            *     *      *    *     *                             contractors or subcontractors during any


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00011   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73494            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        period of debarment, suspension, or                      consultant, available to HUD by statute               or certificate. In such cases, the Review
                                        otherwise ineligible status.                             or otherwise.                                         Committee may take such action,
                                        I 46. Revise § 135.74(d) to read as                      I 51. Revise § 200.195(d) to read as                  including modification or withdrawal of
                                        follows:                                                 follows:                                              approval, as it determines to be in the
                                                                                                                                                       best interest of the Department and the
                                        § 135.74 Section 3 compliance review                     § 200.195 Removal of nonprofit                        public. For the purpose of this section,
                                        procedures.                                              organization from Nonprofit Organization              the term ‘‘approval’’ includes
                                        *      *    *     *     *                                Roster.
                                                                                                                                                       conditional approval.
                                           (d) Continuing noncompliance by                       *     *     *     *     *                             I 56. Revise § 200.243(b) to read as
                                        recipient or contractor. A continuing                      (d) Other action. Nothing in this                   follows:
                                        failure or refusal by the recipient or                   section prohibits HUD from taking such
                                        contractor to comply with the                            other action against a nonprofit                      § 200.243    Hearing rules—How and when to
                                        regulations in this part may result in the               organization, as provided in 2 CFR part               apply.
                                        application of sanctions specified in the                2424, or from seeking any other remedy                *     *    *     *    *
                                        contract through which HUD assistance                    against a nonprofit organization,                       (b) Hearings and review of
                                        is provided, or the application of                       available to HUD by statute or                        determination by the Hearing Officer
                                        sanctions specified in the regulations                   otherwise.                                            shall be governed by the procedures
                                        governing the HUD program under                          I 52. Revise § 200.204(a) introductory                contained in 2 CFR part 2424, except as
                                        which HUD financial assistance is                        text and (e) to read as follows:                      modified in paragraph (a) of this section
                                        provided. HUD will notify the recipient                                                                        and by § 200.245.
                                                                                                 § 200.204 What actions may HUD take
                                        of any continuing failure or refusal by                  against unsatisfactory appraisers on the              I 57. Revise § 200.935(c)(3) to read as
                                        the contractor to comply with the                        Appraiser Roster?                                     follows:
                                        regulations in this part for possible                    *      *    *     *     *
                                        action under any procurement contract                                                                          § 200.935 Administrator qualifications and
                                                                                                    (a) Removal from the Appraiser                     procedures for HUD building products
                                        between the recipient and the                            Roster. HUD officials, as designated by               certification programs.
                                        contractor. Where appropriate,                           the Secretary, may at any time remove
                                        debarment, suspension, and limited                                                                             *     *    *     *     *
                                                                                                 a listed appraiser from the Appraiser                   (c) * * *
                                        denial of participation may be applied                   Roster for cause, in accordance with
                                        to the recipient or the contractor,                                                                              (3) Acceptance. HUD shall review
                                                                                                 paragraphs (a)(1) through (a)(3) of this              each submission and notify the
                                        pursuant to HUD’s regulations at 2 CFR                   section. The provisions of paragraphs
                                        part 2424.                                                                                                     applicant whether or not they are
                                                                                                 (a)(1) through (a)(3) of this section do              accepted or rejected. HUD shall be
                                        *      *    *     *     *                                not apply to removal actions taken                    notified immediately of any change(s) in
                                                                                                 under any section in 2 CFR part 2424 or               the administrator’s submission
                                        PART 200—INTRODUCTION TO FHA                             to any other remedy against an
                                        PROGRAMS                                                                                                       regarding program procedures and/or
                                                                                                 appraiser, available to HUD by statute or             major personnel associated with the
                                                                                                 otherwise.                                            program. HUD reserves the right to
                                        I 47. The authority citation for part 200
                                        continues to read as follows:                            *      *    *     *     *                             suspend or debar an administrator in
                                                                                                    (e) Other action. Nothing in this                  accordance with 2 CFR part 2424.
                                          Authority: 12 U.S.C. 1702–1715z–21; 42
                                                                                                 section prohibits HUD from taking any                 *     *    *     *     *
                                        U.S.C. 3535(d).
                                                                                                 other action against an appraiser, as                 I 58. Revise § 200.1500(b) to read as
                                        I   48. Revise § 200.31 to read as follows:              provided under 2 CFR part 2424, or                    follows:
                                        § 200.31    Debarment and Suspension.                    from seeking any other remedy against
                                                                                                 an appraiser, available to HUD by                     § 200.1500    Sanctions against a MAP
                                          The requirements set forth in 2 CFR                    statute or otherwise.                                 lender.
                                        part 2424 apply to these programs.                                                                             *      *    *     *     *
                                        I 49. Revise § 200.172(d) to read as                     § 200.226    [Amended]
                                                                                                                                                          (b) The actions listed in paragraphs
                                        follows:                                                 I 53. In § 200.226(a)(2)(i), revise the               (a)(1) through (a)(4) of this section are
                                                                                                 reference to ‘‘24 CFR part 24’’ to read ‘‘2           carried out in accordance with the
                                        § 200.172    Removal from the Inspector
                                        Roster.
                                                                                                 CFR part 2424.’’                                      requirements of this subpart. An LDP is
                                                                                                                                                       a sanction applied in accordance with
                                        *     *    *     *     *                                 § 200.230    [Amended]
                                                                                                                                                       subpart J of 2 CFR part 2424 to
                                          (d) Other action. Nothing in this                      I 54. In § 200.230(a), revise the                     participants in loan transactions other
                                        section prohibits HUD from taking such                   reference to ‘‘part 24 of this title’’ to             than FHA-insured lenders. The
                                        other action against an inspector, as                    read ‘‘2 CFR part 2424.’’                             Mortgagee Review Board procedures are
                                        provided in 2 CFR part 2424, or from                                                                           found at 24 CFR part 25.
                                                                                                 I 55. Revise § 200.236 to read as
                                        seeking any other remedy against an
                                                                                                 follows:                                              I 59. Revise § 200.1530(b)(14) and (15)
                                        inspector, available to HUD by statute or
                                                                                                                                                       to read as follows:
                                        otherwise.                                               § 200.236 Modification or withdrawal of
                                        I 50. Revise § 200.192(d) to read as                     certain approvals.                                    § 200.1530    Bases for sanctioning a MAP
                                        follows:                                                    Approvals will not be modified or                  lender.
                                                                                                 withdrawn, except in cases where the                  *     *     *    *      *
                                        § 200.192    Removal of 203(k) consultant.               principal is subsequently suspended or                  (b) * * *
                                        *     *    *     *     *                                 debarred from further participation in                  (14) Employing or retaining an officer,
pwalker on PROD1PC71 with RULES3




                                          (d) Other action. Nothing in this                      any HUD programs under 2 CFR part                     partner, director, or principal at the time
                                        section prohibits HUD from taking such                   2424, or is found by the Review                       when the person was suspended,
                                        other action against a consultant, as                    Committee to have obtained approval                   debarred, ineligible, or subject to an
                                        provided in 2 CFR part 2424, or from                     based upon submission to HUD of a                     LDP under 2 CFR part 2424, or
                                        seeking any other remedy against a                       false, fraudulent, or incomplete report               otherwise prohibited from participation


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00012   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                          73495

                                        in HUD programs, when the MAP                            and the procedural safeguards of 2 CFR                organizational and participatory rights
                                        lender knew or should have known of                      part 2424 will apply.                                 of tenants, may be liable for sanctions
                                        the prohibition;                                         *     *     *     *     *                             under 2 CFR part 2424. Such sanctions
                                          (15) Employing or retaining an                           (d) After a Plan has been accepted by               may include:
                                        employee who is not an officer, partner,                 HUD, there shall be no change in, or                     (1) Debarment. A person who is
                                        director, or principal, and who is or will               modification to, its provisions, or in its            debarred is prohibited from future
                                        be working on HUD-FHA program                            insurance backers or insurance                        participation in federal programs for a
                                        matters, at a time when that person was                  contract(s), without prior written HUD                period of time. The specific rules and
                                        suspended, debarred, ineligible, or                      acceptance of such change or                          regulations relating to debarment are
                                        subject to an LDP under 2 CFR part                       modification, except that changes                     found at 2 CFR part 2424.
                                        2424, or otherwise prohibited from                       mandated by other applicable laws may                    (2) Suspension. Suspension is a
                                        participation in HUD programs, when                      not require HUD’s prior approval. A                   temporary action with the same effect as
                                        the MAP lender knew or should have                       violation of this condition may be cause              debarment, to be taken when there is
                                        known of the prohibition;                                for termination of a Plan’s acceptance,               adequate evidence that a cause for
                                        *     *     *     *     *                                and may be grounds for initiation of                  debarment may exist and immediate
                                                                                                 sanctions against the Plan issuer, in                 action is needed to protect the public
                                        PART 202—APPROVAL OF LENDING                             accordance with 2 CFR part 2424.                      interest. The specific rules and
                                        INSTITUTIONS AND MORTGAGEES                              Insofar as practicable, HUD will respond              regulations relating to suspension are
                                                                                                 to a Plan issuer’s request for acceptance             found at 2 CFR part 2424.
                                        I 60. The authority citation for part 202                                                                         (3) Limited Denial of Participation.
                                                                                                 of a change within 30 days of receipt of
                                        continues to read as follows:                                                                                  An LDP generally excludes a person
                                                                                                 the request. Plan acceptance by HUD
                                          Authority: 12 U.S.C. 1703, 1709, and                   will be for a two-year period.                        from future participation in the federal
                                        1715b; 42 U.S.C. 3535(d).                                                                                      program under which the cause arose.
                                                                                                 *     *     *     *     *
                                        I 61. Revise § 202.5(j)(1) to read as                                                                          The duration of an LDP is generally up
                                        follows:                                                 PART 206—HOME EQUITY                                  to 12 months. The specific rules and
                                                                                                 CONVERSION MORTGAGE                                   regulations relating to LDPs are found at
                                        § 202.5   General approval standards.                    INSURANCE                                             2 CFR part 2424, subpart J.
                                        *      *    *    *     *                                                                                          (b) These sanctions may also apply to
                                          (j) * * *                                              I 64. The authority citation for part 206             affiliates (as defined in 2 CFR part 2424)
                                          (1) Be suspended, debarred, or                         continues to read as follows:                         of these persons or entities.
                                        otherwise restricted under 2 CFR part                      Authority: 12 U.S.C. 1715b, 1715z–1720;                (c) The procedures in 2 CFR part 2424
                                        2424 or part 25 of this title, or under                  42 U.S.C. 3535(d).                                    shall apply to actions under this
                                        similar procedures of any other federal                                                                        subpart.
                                                                                                 I 65. Revise § 206.201(b) to read as
                                        agency;
                                                                                                 follows:                                              PART 291—DISPOSITION OF HUD-
                                        *      *    *    *     *
                                                                                                 § 206.201 Mortgage servicing generally;               ACQUIRED SINGLE FAMILY
                                        PART 203—SINGLE FAMILY                                   sanctions.                                            PROPERTY
                                        MORTGAGE INSURANCE                                       *      *     *    *    *                              I 68. The authority citation for part 291
                                                                                                    (b) Importance of timely payments.                 continues to read as follows:
                                        I 62. The authority citation for part 203                The paramount servicing responsibility
                                        continues to read as follows:                            is the need to make timely payments in                  Authority: 12 U.S.C. 1701 et seq.; 42 U.S.C.
                                          Authority: 12 U.S.C. 1709, 1710, 1715b,                                                                      1441, 1441a, 1551a, and 3535(d).
                                                                                                 full as required by the mortgage. Any
                                        1715z–16, and 1715u; 42 U.S.C. 3535(d).                  failure of a mortgagee to make all                    I 69. Revise § 291.200(b) to read as
                                        I 63. Revise § 203.202(b) and (d) to read                payments required by the mortgage in a                follows:
                                        as follows:                                              timely manner will be grounds for
                                                                                                 administrative sanctions authorized by                § 291.200   Future REO acquisition method.
                                        § 203.202 Plan acceptability and                         regulations, including 2 CFR part 2424                *     *     *     *      *
                                        acceptance renewal criteria—general.                     (Debarment, Suspension, and Limited                     (b) Eligible entities. An individual,
                                        *      *     *      *    *                               Denial of Participation), and part 25 of              partnership, corporation, or other legal
                                           (b) In evaluating applications for                    this title (Mortgagee Review Board).                  entity will not be eligible to participate
                                        renewal of Plan acceptance, HUD will                     *      *     *    *    *                              in this process if at the time of the sale,
                                        take into consideration such reliable                                                                          that individual or entity is debarred,
                                        evidence, as is made available to the                    PART 245—TENANT PARTICIPATION                         suspended, or otherwise precluded from
                                        Department, of a Plan issuer’s failure to                IN MULTIFAMILY HOUSING PROJECTS                       doing business with HUD under 2 CFR
                                        fulfill its obligations. Where HUD has                                                                         part 2424.
                                        credible evidence of a Plan issuer’s                     I 66. The authority citation for part 245
                                                                                                                                                       I 70. Revise § 291.303 to read as
                                        failure to correct covered homeowner                     continues to read as follows:
                                                                                                                                                       follows:
                                        problems, or there are justifiable                         Authority: 12 U.S.C. 1715z–1b; 42 U.S.C.
                                        homeowner complaints about untimely                      3535(d).                                              § 291.303   Eligible bidders.
                                        problem resolution by a Plan issuer,                     I 67. Revise § 245.135 to read as                        HUD will provide information on the
                                        HUD will consider this as cause for                      follows:                                              eligibility of bidders in the bid package,
                                        termination of a Plan’s acceptance and                                                                         a notice in the Federal Register, or other
                                        as grounds for initiation of sanctions                   § 245.135    Enforcement.                             means, at the Secretary’s full discretion.
pwalker on PROD1PC71 with RULES3




                                        against a Plan issuer or insurance                         (a) Owners of housing identified in                 However, an individual, partnership,
                                        backer, in accordance with 2 CFR part                    § 245.10, and their agents, as well as any            corporation, or other legal entity will
                                        2424. If HUD proposes to terminate a                     principals thereof (as defined in 2 CFR               not be eligible to bid for any loan pool,
                                        Plan’s acceptance, the issuer of the Plan                part 2424), who violate any provision of              either as an individual or a participant,
                                        will be advised of the reason therefore,                 this subpart so as to interfere with the              if, at the time of the sale, that individual


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00013   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3
                                        73496            Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations

                                        or entity is debarred or suspended from                    (1) The owner or an affiliate is                    of contracts to, or funding of any
                                        doing business with HUD under 2 CFR                      debarred or suspended under part 2 CFR                contractors or subcontractors during any
                                        part 2424.                                               part 2424;                                            period of debarment, suspension, or
                                                                                                 *     *    *    *    *                                placement in ineligibility status.
                                        PART 401—MULTIFAMILY MORTGAGE
                                        AND HOUSING ASSISTANCE                                   PART 570—COMMUNITY                                    PART 941—PUBLIC HOUSING
                                        RESTRUCTURING PROGRAM (MARK-                             DEVELOPMENT BLOCK GRANTS                              DEVELOPMENT
                                        TO-MARKET)
                                                                                                 I 76. The authority citation for part 570             I 84. The authority citation for part 941
                                        I 71. The authority citation for part 401                continues to read as follows:                         continues to read as follows:
                                        continues to read as follows:                                                                                    Authority: 42 U.S.C. 1437b, 1437c, 1437g,
                                                                                                   Authority: 42 U.S.C. 3535(d) and 5301–
                                          Authority: 12 U.S.C. 1715z–1 and 1735f–                5320.                                                 and 3535(d).
                                        19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f
                                        note, and 3535(d).                                       I 77. Revise § 570.489(l) to read as                  I 85. Revise § 941.205(d) to read as
                                                                                                 follows:                                              follows:
                                        I 72. Revise § 401.101(a) and (b)(1) to
                                        read as follows:                                         § 570.489 Program administrative                      § 941.205    PHA contracts.
                                                                                                 requirements.                                         *     *     *     *     *
                                        § 401.101 Which owners are ineligible to
                                                                                                 *     *    *    *    *                                  (d) Each PHA shall certify before
                                        request Restructuring Plans?
                                                                                                   (l) Debarment and suspension. The                   executing any contract with a contractor
                                          (a) Mandatory rejection. The request                   requirements in 2 CFR part 2424 are                   that the contractor is not suspended,
                                        of an owner of an eligible project will                  applicable. CDBG funds may not be                     debarred, or otherwise ineligible under
                                        not be considered for a Restructuring                    provided to excluded or disqualified                  2 CFR part 2424. Each PHA also shall
                                        Plan if the owner is debarred or                         persons.                                              ensure that all subgrantees, contractors,
                                        suspended under 2 CFR part 2424.
                                                                                                 *     *    *    *    *                                and subcontractors select only
                                          (b) * * *
                                          (1) An affiliate is debarred or                                                                              contractors who are not listed as
                                                                                                 § 570.704    [Amended]
                                        suspended under 2 CFR part 2424; or                                                                            suspended, debarred, or otherwise
                                                                                                 I 78. Remove and reserve                              ineligible under 2 CFR part 2424.
                                        *     *     *     *     *                                § 570.704(b)(5) and (6).
                                        I 73. Revise § 401.403(b)(1) and (b)(2)(i)                                                                     PART 954—INDIAN HOME PROGRAM
                                        to read as follows:                                      PART 572—HOPE FOR
                                                                                                 HOMEOWNERSHIP OF SINGLE                               I 86. The authority citation for part 954
                                        § 401.403 Rejection of a request for a                   FAMILY HOMES PROGRAM (HOPE 3)                         continues to read as follows:
                                        Restructuring Plan because of actions or
                                        omissions of owner, or affiliate or project                                                                      Authority: 42 U.S.C. 3535(d) and 12701–
                                                                                                 I 79. The authority citation for part 572             12839.
                                        condition.
                                                                                                 continues to read as follows:
                                        *     *      *     *    *                                                                                      § 954.4    [Amended]
                                                                                                     Authority: 42 U.S.C. 3535(d) and 12891.
                                          (b) * * *
                                                                                                                                                       I   87. Remove § 954.4(i).
                                          (1) Suspension or debarment. Neither                   I 80. Revise § 572.225(b)(2)(v) to read as
                                        a PAE nor HUD will continue to                           follows:                                              PART 982—SECTION 8 TENANT-
                                        develop or consider a Restructuring                                                                            BASED ASSISTANCE: HOUSING
                                        Plan if, at any time before a closing                    § 572.225 Grant agreements; corrective
                                                                                                 and remedial actions.                                 CHOICE VOUCHER PROGRAM
                                        under § 401.407, the owner is debarred
                                        or suspended under 2 CFR part 2424.                      *     *    *     *    *                               I 88. The authority citation for part 982
                                          (2) * * *                                                (b) * * *                                           continues to read as follows:
                                          (i) An affiliate is debarred or                          (2) * * *
                                                                                                   (v) Taking action against the recipient                 Authority: 42 U.S.C. 1437f and 3535(d).
                                        suspended under 2 CFR part 2424;
                                                                                                 under 2 CFR part 2424 with respect to                 I 89. Revise § 982.306(a) to read as
                                        *     *      *     *    *
                                                                                                 future HOPE 3, HUD, or federal grant                  follows:
                                        PART 402—SECTION 8 PROJECT-                              awards; and                                           § 982.306    PHA disapproval of owner.
                                        BASED CONTRACT RENEWAL UNDER                             *     *    *     *    *
                                        SECTION 524 OF MAHRA                                                                                             (a) The PHA must not approve an
                                                                                                 PART 585—YOUTHBUILD PROGRAM                           assisted tenancy if the PHA has been
                                        I 74. The authority citation for part 402                                                                      informed (by HUD or otherwise) that the
                                        continues to read as follows:                            I 81. The authority citation for part 585             owner is debarred, suspended, or
                                                                                                 continues to read as follows:                         subject to a limited denial of
                                          Authority: 42 U.S.C. 1437(c)(8), 1437f note,
                                        and 3535(d).                                                 Authority: 42 U.S.C. 3535(d) and 8011.
                                                                                                                                                       participation under 2 CFR part 2424.
                                                                                                                                                       *     *     *     *    *
                                        I 75. In § 402.7, revise the introductory                § 585.502    [Amended]
                                        text of paragraph (a) and paragraph                                                                            I 90. Revise § 982.628(c) to read as
                                        (a)(1) to read as follows:                               I  82. In § 585.502, remove paragraph (c)             follows:
                                                                                                 and redesignate paragraphs (d) through
                                        § 402.7 Refusal to consider an owner’s                   (j) as (c) through (i), respectively.                 § 982.628    Homeownership option: Eligible
                                        request for a Section 8 contract renewal                                                                       units.
                                                                                                 I 83. Revise § 585.504 to read as
                                        because of actions or omissions of owner                 follows:                                              *     *     *      *    *
                                        or affiliate.                                                                                                    (c) PHA disapproval of seller. The
pwalker on PROD1PC71 with RULES3




                                          (a) Determination of eligibility.                      § 585.504 Use of debarred, suspended, or              PHA may not commence
                                        Notwithstanding 2 CFR part 2424, HUD                     ineligible contractors.                               homeownership assistance for
                                        may elect to not consider a request for                    The provisions of 2 CFR part 2424                   occupancy of a home if the PHA has
                                        renewal of project-based assistance, if at               apply to the employment of,                           been informed (by HUD or otherwise)
                                        any time before contract renewal:                        engagement of services from, awarding                 that the seller of the home is debarred,


                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00014   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM    27DER3
                                                         Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Rules and Regulations                                          73497

                                        suspended, or subject to a limited denial                § 1003.608    Debarment and Suspension.               701, et seq.) and HUD’s implementing
                                        of participation under 2 CFR part 2424.                    The requirements in 2 CFR part 2424                 regulations in 24 CFR part 21 apply to
                                        *     *     *    *    *                                  are applicable. ICDBG funds cannot be                 the use of assistance under this part.
                                                                                                 provided to excluded or disqualified                  *     *     *     *    *
                                        § 982.631    [Amended]                                   persons.
                                        I   91. Remove § 982.631(c)(2)(v).                                                                             PART 3282—MANUFACTURED HOME
                                                                                                 PART 1005—LOAN GUARANTEES                             PROCEDURAL AND ENFORCEMENT
                                        PART 983—PROJECT-BASED                                   FOR INDIAN HOUSING                                    REGULATIONS
                                        VOUCHER (PBV) PROGRAM                                    I 99. The authority citation for part
                                                                                                                                                       I 103. The authority citation for part
                                        I 92. The authority citation for part 983                1005 continues to read as follows:
                                                                                                                                                       3282 continues to read as follows:
                                        continues to read as follows:                              Authority: 12 U.S.C. 1715z-13a; 42 U.S.C.
                                                                                                 3535(d).                                                Authority: 28 U.S.C. 2461 note; 42 U.S.C.
                                            Authority: 42 U.S.C. 1437f and 3535(d).                                                                    5424; and 42 U.S.C. 3535(d).
                                                                                                 I 100. Revise § 1005.107(b)(5)(ii) to read
                                        I  93. In § 983.4, revise the entry for                  as follows:                                           I 104. Revise § 3282.151(d) to read as
                                        ‘‘Debarment’’ to read as follows:                                                                              follows:
                                                                                                 § 1005.107    What is eligible collateral?
                                        § 983.4 Cross-reference to other Federal                                                                       § 3282.151    Applicability and scope.
                                        requirements.
                                                                                                 *       *    *      *    *
                                                                                                    (b) * * *                                          *     *     *    *     *
                                        *    *     *     *    *                                     (5) * * *                                            (d) To the extent that these
                                          Debarment. Prohibition on use of                          (ii) Review. If the Department ceases              regulations provide for Formal or
                                        debarred, suspended, or ineligible                       to issue guarantees in accordance with                Informal Presentations of Views for
                                        contractors. See 24 CFR 5.105(c) and 2                   paragraph (b)(5)(i) of this section, HUD              parties that would otherwise qualify for
                                        CFR part 2424.                                           will notify the tribe of the reasons for              hearings under 2 CFR part 2424, the
                                        *    *     *     *    *                                  such action and that the tribe may,                   procedures of 2 CFR part 2424 shall not
                                                                                                 within 30 days after notification of                  be available and shall not apply.
                                        PART 1000—NATIVE AMERICAN                                HUD’s action, file a written appeal with
                                        HOUSING ACTIVITIES                                       the Director, Office of Loan Guarantee                PART 3500—REAL ESTATE
                                                                                                 (OLG), Office of Native American                      SETTLEMENT PROCEDURES ACT
                                        I 94. The authority citation for part                    Programs (ONAP). Within 30 days after
                                        1000 continues to read as follows:                       notification of an adverse decision by                I 105. The authority citation for part
                                          Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C.           the OLG Director, the tribe may file a                3500 continues to read as follows:
                                        3535(d)                                                  written request for review with the                     Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C.
                                                                                                 Deputy Assistant Secretary for ONAP.                  3535(d).
                                        I 95. Revise § 1000.44 to read as                        Upon notification of an adverse decision
                                        follows:                                                 by the Deputy Assistant Secretary, the                I 106. Revise § 3500.19(a) to read as
                                        § 1000.44 What prohibitions on the use of                tribe has 30 additional days to file an               follows:
                                        debarred, suspended, or ineligible                       appeal with the Assistant Secretary for
                                                                                                                                                       § 3500.19    Enforcement.
                                        contractors apply?                                       Public and Indian Housing. The
                                                                                                 determination of the Assistant Secretary                (a) Enforcement policy. It is the policy
                                          In addition to any tribal requirements,
                                                                                                 shall be final, but the tribe may resubmit            of the Secretary regarding RESPA
                                        the prohibitions in 2 CFR part 2424 on
                                                                                                 the issue to the Assistant Secretary for              enforcement matters to cooperate with
                                        the use of debarred, suspended, or
                                                                                                 review at any subsequent time, if new                 Federal, State, or local agencies having
                                        ineligible contractors apply.
                                                                                                 evidence or changed circumstances                     supervisory powers over lenders or
                                        I 96. Revise § 1000.46 to read as                        warrant reconsideration. (Any other                   other persons with responsibilities
                                        follows:                                                 administrative actions determined to be               under RESPA. Federal agencies with
                                        § 1000.46 Do drug-free workplace                         necessary to debar a tribe from                       supervisory powers over lenders may
                                        requirements apply?                                      participating in this program will be                 use their powers to require compliance
                                          Yes. In addition to any tribal                         subject to the formal debarment                       with RESPA. In addition, failure to
                                        requirements, the Drug-Free Workplace                    procedures contained in 2 CFR part                    comply with RESPA may be grounds for
                                        Act of 1988 (41 U.S.C. 701, et seq.) and                 2424.)                                                administrative action by the Secretary
                                        HUD’s implementing regulations in 24                                                                           under 2 CFR part 2424 concerning
                                                                                                 PART 1006—NATIVE HAWAIIAN                             debarment, suspension, ineligibility of
                                        CFR part 21 apply.                                       HOUSING BLOCK GRANT PROGRAM                           contractors and grantees, or under part
                                        PART 1003—COMMUNITY                                                                                            25 of this title concerning the HUD
                                                                                                 I 101. The authority citation for part
                                        DEVELOPMENT BLOCK GRANTS FOR                                                                                   Mortgagee Review Board. Nothing in
                                                                                                 1006 continues to read as follows:
                                        INDIAN TRIBES AND ALASKA NATIVE                                                                                this paragraph is a limitation on any
                                                                                                   Authority: 25 U.S.C. 4221 et seq.; 42 U.S.C.        other form of enforcement that may be
                                        VILLAGES
                                                                                                 3535(d).                                              legally available.
                                        I 97. The authority citation for part                    I 102. Revise § 1006.375(b) to read as                *     *      *     *    *
                                        1003 continues to read as follows:                       follows:                                                Dated: December 14, 2007.
                                          Authority: 42 U.S.C. 3535(d) and 5301 et                                                                     Roy A. Bernardi,
                                                                                                 § 1006.375    Other Federal requirements.
                                        seq.
                                                                                                 *     *    *     *    *                               Deputy Secretary.
pwalker on PROD1PC71 with RULES3




                                        I 98. Revise § 1003.608 to read as                         (b) Drug-free workplace. The Drug-                  [FR Doc. E7–24908 Filed 12–26–07; 8:45 am]
                                        follows:                                                 Free Workplace Act of 1988 (41 U.S.C.                 BILLING CODE 4210–67–P




                                   VerDate Aug<31>2005    18:58 Dec 26, 2007   Jkt 214001   PO 00000   Frm 00015   Fmt 4701   Sfmt 4700   E:\FR\FM\27DER3.SGM   27DER3

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:19
posted:7/25/2011
language:English
pages:15