42 USC 3545: HUD Reform Act
About This Project
This project uses data compiled by the Sunshine in Government initiative, a coalition of journalism and transparency groups. SGI compiled data from federal agency annual FOIA reports to track how often b(3) exemptions were used. SGI also standardized the exemptions since some agencies used slightly different citations of the same laws. In some cases, agencies listed general laws without specifying a section under which information was withheld. This project does not include information from agencies that use no b(3) exemptions in 2008 or 2009. ProPublica compiled information about FOIA denials.
| Department | Claims |
|---|---|
| Dept. of Housing and Urban Development | 1.0 |
CHAPTER 44--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Sec. 3545. HUD accountability
(a) Notice regarding assistance
(1) Publication of notice of availability
The Secretary shall publish in the Federal Register notice of
the availability of any assistance under any program or
discretionary fund administered by the Secretary.
(2) Publication of application procedures
The Secretary shall publish in the Federal Register a
description of the form and procedures by which application for the
assistance may be made, and any deadlines relating to the award or
allocation of the assistance. Such description shall be designed to
help eligible applicants to apply for such assistance.
(3) Publication of selection criteria
Not less than 30 days before any deadline by which applications
or requests for assistance under any program or discretionary fund
administered by the Secretary must be submitted, the Secretary shall
publish in the Federal Register the criteria by which selection for
the assistance will be made. Subject to section 1439 of this title,
such criteria shall include any objective measures of housing need,
project merit, or efficient use of resources that the Secretary
determines are appropriate and consistent with the statute under
which the assistance is made available.
(4) Documentation of decisions
(A) The Secretary shall award or allocate assistance only in
response to a written application in a form approved in advance by
the Secretary, except where other award or allocation procedures are
specified in statute.
(B) The Secretary shall ensure that documentation and other
information regarding each application for assistance is sufficient
to indicate the basis on which any award or allocation was made or
denied. The preceding sentence shall apply to--
(i) any application for an award or allocation of assistance
made by the Secretary to a State, unit of general local
government, or other recipient of assistance, and
(ii) any application for a subsequent award or allocation of
such assistance by such State, unit of general local government
or other recipient.
(C)(i) The Secretary shall notify the public of all funding
decisions made by the Department. The Secretary shall require any
State or unit of general local government to notify the public of
the award or allocation of such funding to subsequent recipients.
The notification shall include the following elements for each
funding decision:
(I) the name and address of each funding recipient;
(II) the name or other means of identifying the project,
activity, or undertaking for each funding recipient;
(III) the dollar amount of the funding for each project,
activity, or undertaking;
(IV) the citation to the statutory, regulatory, or other
criteria under which the funding decision was made; and
(V) such additional information as the Secretary deems
appropriate for a clear and full understanding of the funding
decision.
(ii) The notification referred to in clause (i) of this
subsection shall be published as a Notice in the Federal Register at
least quarterly.
(iii) For purposes of this subparagraph, the term ``funding
decision'' means the decision of the Secretary to make available
grants, loans, or any other form of financial assistance to an
individual or to an entity, including (but not limited to) a State
or local government or agency thereof (including a public housing
agency), an Indian tribe, or a nonprofit organization, under any
program administered by the Department that provides, by statute,
regulation, or otherwise, for the competitive distribution of
financial assistance.
(D) The Secretary shall publish a notice in the Federal Register
at least annually informing the public of the allocation of
assistance under section 1439(d)(1)(A) of this title.
(E) The Secretary shall ensure that each application and all
related documentation and
other information referred to in subparagraph (B), including each
letter of support, is readily available for public inspection for a
period of not less than 5 years, beginning not less than 30 days
following the date on which the award or allocation is made.
(5) Emergency exception
The Secretary may waive the requirements of paragraphs (1), (2),
and (3) if the Secretary determines that the waiver is required for
appropriate response to an emergency. Not less than 30 days after
providing a waiver under the preceding sentence, the Secretary shall
publish in the Federal Register the Secretary's reasons for so
doing.
(b) Disclosures by applicants
The Secretary shall require the disclosure of information with
respect to any application for assistance within the jurisdiction of the
Department for a project application submitted to the Secretary or to
any State or unit of general local government by any applicant who has
received or, in the determination of the Secretary, can reasonably be
expected to receive assistance within the jurisdiction of the Department
in excess of $200,000 in the aggregate during any fiscal year or such
lower amount as the Secretary may establish by regulation. Such
information shall include the following:
(1) Other government assistance
Information regarding any related assistance from the Federal
Government, a State, or a unit of general local government, or any
agency or instrumentality thereof, that is expected to be made
available with respect to the project or activities for which the
applicant is seeking assistance. Such related assistance shall
include but not be limited to any loan, grant, guarantee, insurance,
payment, rebate, subsidy, credit, tax benefit, or any other form of
direct or indirect assistance.
(2) Interested parties
The name and pecuniary interest of any person who has a
pecuniary interest in the project or activities for which the
applicant is seeking assistance. Persons with a pecuniary interest
in the project or activity shall include but not be limited to any
developers, contractors, and consultants involved in the application
for assistance or the planning, development, or implementation of
the project or activity. For purposes of this paragraph, residency
of an individual in housing for which assistance is being sought
shall not, by itself, be considered a pecuniary interest.
(3) Expected sources and uses
A report satisfactory to the Secretary of the expected sources
and uses of funds that are to be made available for the project or
activity.
(c) Updating of disclosure
During the period when an application is pending or assistance is
being provided, the applicant shall update the disclosure required under
the previous subsection within 30 days of any substantial change.
(d) Limitation of assistance
The Secretary shall certify that assistance within the jurisdiction
of the Department to any housing project shall not be more than is
necessary to provide affordable housing after taking account of
assistance described in subsection (b)(1) of this section. The Secretary
shall adjust the amount of assistance awarded or allocated to an
applicant to compensate in whole or in part, as the Secretary determines
to be appropriate, for any changes reported under subsection (c) of this
section.
(e) Administrative remedies
If the Secretary receives or obtains information providing a
reasonable basis to believe that a violation of subsection (b) or (c) of
this section has occurred, the Secretary shall--
(1) in the case of a selection that has not been made, determine
whether to terminate the selection process or take other appropriate
actions; and
(2) in the case of a selection that has been made, determine
whether to--
(A) void or rescind the selection, subject to review and
determination on the record after opportunity for a hearing;
(B) impose sanctions upon the violator, including debarment,
subject to review and determination on the record after
opportunity for a hearing;
(C) recapture any funds that have been disbursed;
(D) permit the violating applicant selected to continue to
participate in the program; or
(E) take any other actions that the Secretary considers
appropriate.
The Secretary shall publish in the Federal Register a descriptive
statement of each determination made and action taken under this
subsection.
(f) Civil money penalties
(1) In general
Whenever any person knowingly and materially violates any
provision of subsection (b) or (c) of this section, the Secretary
may impose a civil money penalty on that person in accordance with
the provisions of this section. This penalty shall be in addition to
any other available civil remedy or any available criminal penalty,
and may be imposed whether or not the Secretary imposes other
administrative sanctions.
(2) Amount of penalty
The amount of the penalty, as determined by the Secretary, may
not exceed $10,000 for each violation.
(g) Agency procedures
(1) In general
The Secretary shall establish standards and procedures governing
the imposition of civil money penalties under subsection (f) of this
section. These standards and procedures--
(A) shall provide for the Secretary to make the
determination to impose the penalty or to use an administrative
entity to make the determination;
(B) shall provide for the imposition of a penalty only after
the person has been given an opportunity for a hearing on the
record; and
(C) may provide for review by the Secretary of any
determination or order, or interlocutory ruling, arising from a
hearing.
If no hearing is requested within 15 days of receipt of the notice
of opportunity for hearing, the imposition of the penalty shall
constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm,
modify, or reverse that determination or order. If the Secretary
does not review the determination or order, the determination or
order shall be final.
(2) Factors in determining amount of penalty
In determining the amount of a penalty under subsection (f) of
this section, consideration shall be given to such factors as the
gravity of the offense, ability to pay the penalty, injury to the
public, benefits received, deterrence of future violations, and such
other factors as the Secretary may determine in regulations to be
appropriate.
(3) Reviewability of imposition of a penalty
The Secretary's determination or order imposing a penalty under
subsection (f) of this section shall not be subject to review,
except as provided in subsection (h) of this section.
(h) Judicial review of agency determination
(1) In general
After exhausting all administrative remedies established by the
Secretary under subsection (g)(1) of this section, a person against
whom the Secretary has imposed a civil money penalty under
subsection (f) of this section may obtain a review of the penalty
and such ancillary issues as may be addressed in the notice of
determination to impose a penalty under subsection (g)(1)(A) of this
section in the appropriate court of appeals of the United States, by
filing in such court, within 20 days after the entry of such order
or determination, a written petition praying that the order or
determination of the Secretary be modified or be set aside in whole
or in part.
(2) Objections not raised in hearing
The court shall not consider any objection that was not raised
in the hearing conducted pursuant to subsection (g)(1) of this
section unless a demonstration is made of extraordinary
circumstances causing the failure to raise the objection. If any
party demonstrates to the satisfaction of the court that additional
evidence not presented at the hearing is material and that there
were reasonable grounds for the failure to present such evidence at
the hearing, the court shall remand the matter to the Secretary for
consideration of such additional evidence.
(3) Scope of review
The decisions, findings, and determinations of the Secretary
shall be reviewed pursuant to section 706 of title 5.
(4) Order to pay penalty
Notwithstanding any other provision of law, in any such review,
the court shall have the power to order payment of the penalty
imposed by the Secretary.
(i) Action to collect penalty
If any person fails to comply with the determination or order of the
Secretary imposing a civil money penalty under subsection (f) of this
section, after the determination or order is no longer subject to review
as provided by subsections (g)(1) and (h) of this section, the Secretary
may request the Attorney General of the United States to bring an action
in an appropriate United States district court to obtain a monetary
judgment against the person and such other relief as may be available.
The monetary judgment may, in the court's discretion, include the
attorneys' fees and other expenses incurred by the United States in
connection with the action. In an action under this subsection, the
validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
(j) Settlement by Secretary
The Secretary may compromise, modify, or remit any civil money
penalty which may be, or has been, imposed under this section.
(k) Regulations
The Secretary shall issue such regulations as the Secretary deems
appropriate to implement this section.
(l) Deposit of penalties
The Secretary shall deposit all civil money penalties collected
under this section into miscellaneous receipts of the Treasury.
(m) Definitions
For the purpose of this section--
(1) The term ``Department'' means the Department of Housing and
Urban Development.
(2) The term ``Secretary'' means the Secretary of Housing and
Urban Development.
(3) The term ``person'' means an individual (including a
consultant, lobbyist, or lawyer), corporation, company, association,
authority, firm, partnership, society, State, local government, or
any other organization or group of people.
(4) The term ``assistance within the jurisdiction of the
Department'' includes any contract, grant, loan, cooperative
agreement, or other form of assistance, including the insurance or
guarantee of a loan, mortgage, or pool of mortgages.
(5) The term ``knowingly'' means having actual knowledge of or
acting with deliberate ignorance of or reckless disregard for the
prohibitions under this section.
(n) Effective date
This section shall take effect on the date specified in regulations
implementing this section that are issued by the Secretary after notice
and public comment.
(Pub. L. 101-235, title I, Sec. 102, Dec. 15, 1989, 103 Stat. 1990.)
Codification
Section was enacted as part of the Department of Housing and Urban
Development Reform Act of 1989, and not as part of the Department of
Housing and Urban Development Act which comprises this chapter.
Subsidy Layering Review
Pub. L. 102-550, title IX, Sec. 911, Oct. 28, 1992, 106 Stat. 3875,
as amended by Pub. L. 103-233, title III, Sec. 308, Apr. 11, 1994, 108
Stat. 379, provided that:
``(a) Certification of Subsidy Layering Compliance.--The
requirements of section 102(d) of the Department of Housing and Urban
Development Reform Act of 1989 [42 U.S.C. 3545(d)] may be satisfied in
connection with a project receiving assistance under a program that is
within the jurisdiction of the Department of Housing and Urban
Development and under section 42 of the Internal Revenue Code of 1986
[26 U.S.C. 42] by a certification by a housing credit agency to the
Secretary, submitted in accordance with guidelines established by the
Secretary, that the combination of assistance within the jurisdiction of
the Secretary and other government assistance provided in connection
with a property for which assistance is to be provided within the
jurisdiction of the Department of Housing and Urban Development and
under section 42 of the Internal Revenue Code of 1986 shall not be any
greater than is necessary to provide affordable housing.
``(b) In Particular.--The guidelines established pursuant to
subsection (a) shall--
``(1) require that the amount of equity capital contributed by
investors to a project partnership is not less than the amount
generally contributed by investors in current market conditions, as
determined by the housing credit agency; and
``(2) require that project costs, including developer fees, are
within a reasonable range, taking into account project size, project
characteristics, project location and project risk factors, as
determined by the housing credit agency.
``(c) Revocation by Secretary.--If the Secretary determines that a
housing credit agency has failed to comply with the guidelines
established under subsection (a), the Secretary--
``(1) may inform the housing credit agency that the agency may
no longer submit certification of subsidy layering compliance under
this section; and
``(2) shall carry out section 102(d) of the Department of
Housing and Urban Development Reform Act of 1989 [42 U.S.C. 3545(d)]
relating to affected projects allocated a low-income housing tax
credit pursuant to section 42 of the Internal Revenue Code of 1986
[26 U.S.C. 42].
``(d) Applicability.--Section 102(d) of the Department of Housing
and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) shall apply
only to projects for which an application for assistance or insurance
was filed after the date of enactment of the Housing and Urban
Development Reform Act [probably should be Department of Housing and
Urban Development Reform Act of 1989, enacted Dec. 15, 1989].''