OIG Fraud Alert: Bulletin on Charging Excess Rent in the Housing Choice Voucher Program, 39712-39713 [E8-15663]

Download as PDF 39712 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices jlentini on PROD1PC65 with NOTICES must be prepared in accordance with the applicable cost principles and guidance as provided by the cognizant agency or office. A current rate means the rate covering the applicable activities and the award budget period. If the current rate is not on file with the DGO at the time of award, the indirect cost portion of the budget will be restricted and not available to the recipient until the current rate is provided to the DGO. Generally, indirect costs rates for IHS grantees are negotiated with the Division of Cost Allocation https:// rates.psc.gov/ and the Department of Interior, National Business Center at https://www.nbc.gov/acquisition/ics/ icshome.html Web site. If your organization has questions regarding the indirect cost policy, please contact the DGO at (301) 443–5204. 4. Reporting A. Progress Report. 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The grantee must verify how the value was derived and submit reports according to the terms and conditions of the award. Failure to submit required reports within the time allowed may result in suspension or termination of an active grant, withholding of additional awards for the project, or other enforcement actions such as withholding of payments or converting to the reimbursement method of payment. Continued failure to submit required reports may result in one or both of the following: (1) The imposition of special award provisions; and (2) the nonfunding or non-award of other eligible projects or activities. This applies whether the delinquency is attributable VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 to the failure of the grantee organization or the individual responsible for preparation of the reports. 5. Telecommunication for the hearing impaired is available at: TTY (301) 443– 6394. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT VII. Agency Contacts AGENCY: For program-related information regarding the community based model of PHN case management services: Cheryl Peterson, R.N., Project Official, Indian Health Service, 801 Thompson Avenue, Suite 329, Rockville, Maryland 20852, (301) 443–1840, Cheryl.Peterson@ihs.gov. For general information regarding this announcement: Ms. Orie Platero, Office Clinical and Preventive Services, Indian Health Service, 801 Thompson Avenue, Suite 326, Rockville, Maryland 20852, (301) 443–2522, Fax: (301) 594–6213. For specific grant-related and business management information: Ms. Norma Jean Dunne, Division of Grant Operations, Indian Health Service, 801 Thompson Avenue, TMP 360–79, Rockville, Maryland 20852, (301) 443– 5204, Fax: (301) 443–9602. VIII. Other Information The Department of Health and Human Services (HHS) is committed to achieving the health promotion and disease prevention objectives of Healthy People 2010, a HHS-led activity for setting priority areas. This project will aid the accomplishment of Healthy People 2010 Focus Area 1—Access. Potential applicants may obtain a printed copy of Healthy People 2010, (Summary Report No, 017–001–00549– 5) or CD–ROM, Stock No. 017–001– 00549–5, through the Superintendent of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250–7945, (202) 512–1800. You may also access this information at the following Web site: https:// www.healthypeople.gov/Publications. The IHS is focusing efforts on three Health Initiatives that, linked together, have the potential to achieve positive improvements in the health of AI/AN people. These three initiatives are Health Promotion/Disease Prevention, Management of Chronic Disease, and Behavioral Health. Further information is available at the Health Initiatives Web site: https://www.ihs.gov/ NonMedicalPrograms/DirInitiatives/ index.cfm. Dated: June 27, 2008. Robert G. McSwain, Director, Indian Health Service. [FR Doc. E8–15773 Filed 7–9–08; 8:45 am] BILLING CODE 4165–16–P PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 [Docket No. FR–5186–N–28] Federal Property Suitable as Facilities To Assist the Homeless Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. SUMMARY: This Notice identifies unutilized, underutilized, excess, and surplus Federal property reviewed by HUD for suitability for possible use to assist the homeless. DATES: Effective Date: July 10, 2008. FOR FURTHER INFORMATION CONTACT: Kathy Ezzell, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 7262, Washington, DC 20410; telephone (202) 708–1234; TTY number for the hearing- and speech-impaired (202) 708–2565, (these telephone numbers are not toll-free), or call the toll-free Title V information line at 800–927–7588. SUPPLEMENTARY INFORMATION: In accordance with the December 12, 1988 court order in National Coalition for the Homeless v. Veterans Administration, No. 88–2503–OG (D.D.C.), HUD publishes a Notice, on a weekly basis, identifying unutilized, underutilized, excess and surplus Federal buildings and real property that HUD has reviewed for suitability for use to assist the homeless. Today’s Notice is for the purpose of announcing that no additional properties have been determined suitable or unsuitable this week. Dated: July 3, 2008. Mark R. Johnston, Deputy Assistant Secretary for Special Needs. [FR Doc. E8–15652 Filed 7–9–08; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5230–01] OIG Fraud Alert: Bulletin on Charging Excess Rent in the Housing Choice Voucher Program AGENCY: Office of the Inspector General, HUD. ACTION: Notice. This Federal Register notice provides important information recently issued by HUD’s Office of the Inspector General (OIG) on a recurring problem in the Housing Choice Voucher program. The problem, which this notice SUMMARY: E:\FR\FM\10JYN1.SGM 10JYN1 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices addresses, is landlords submitting false claims for periodic payments under housing assistance payment (HAP) contracts. FOR FURTHER INFORMATION CONTACT: Bryan P. Saddler, Counsel to the Inspector General, Office of Legal Counsel Office of Inspector General, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 8260, Washington, DC 20410– 4500, telephone (202) 708–1613 (this is not a toll-free number). Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Information Relay Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: I. Mission of HUD’s OIG The mission of HUD’s OIG is to provide policy direction to HUD and to conduct, supervise, and coordinate audits, investigations, and other activities for the purpose of promoting economy and efficiency in the administration of the programs and operations of HUD and preventing and detecting fraud and abuse in such programs. Consistent with this mission, Section II of this notice presents OIG’s fraud information bulletin on charging excess rent in the Housing Choice Voucher program. II. Fraud Information Bulletin: Excess Rent Purpose This Bulletin highlights a recurring problem in the Housing Choice Voucher (HCV) program. Specifically, this Bulletin discusses the submission by landlords of false claims for periodic payments under Housing Assistance Payment (HAP) contracts, where such landlords have violated their continuing obligations to not charge tenants rents in excess of what is authorized by the HAP contracts. jlentini on PROD1PC65 with NOTICES The Problem Improperly requiring tenants to pay rent in excess of what is authorized by the applicable HAP contract represents both an actionable offense under the False Claims Act and deplorable behavior directed towards the very persons whom the HCV program was designed to serve. (Additionally, depending on the intent, such an action may qualify as a criminal offense under 18 U.S.C. 287, 1343, etc.) OIG will not tolerate such conduct, and rather will cooperate with efforts to bring offending landlords to justice and to remedy their wrongs. VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 Background HUD administers Federal aid to local housing agencies (HAs) that is intended to implement housing assistance programs for low-income residents. With respect to the HCV program, HUD funds HAs via annual contributions contracts. The HAs, in turn, enter into HAP contracts with individual landlords. These HAP contracts provide for periodic housing assistance payments on behalf of eligible lowincome tenants. The HAP contracts also may require eligible tenants to make supplemental rent payments; however, the contracts expressly prohibit landlords from requiring tenants to pay rent in excess of what is authorized by the HAP contracts. Pursuant to qui tam complaints and citizen complaints filed throughout the nation and subsequent activities, OIG has become aware of a number of landlords who have improperly required tenants to pay rent in excess of what is authorized by the HAP contracts, and thereby submitted or caused to be submitted false claims for HAP contract periodic rent payments. Example On July 29, 2005, a Connecticut tenant filed a qui tam complaint, under 31 U.S.C. 3730, against her former landlord. See Coleman v. Hernandez, 490 F. Supp.2d 278 (D. Conn. 2007). The tenant complained that pursuant to a HAP contract the landlord had agreed to accept $1,550 per month for the rental of an apartment in Stamford. Of this $1,550, the tenant was personally responsible for $20, and HUD via the HA paid the complementary $1,530. In spite of the explicit prohibition in the HAP contract, however, the landlord required the tenant to pay an ‘‘additional rent payment’’ of $60 on six separate occasions. In other words, the landlord inappropriately extracted an additional $360 from the helpless tenant. OIG is aware of numerous similar examples of this sort of egregious conduct nationwide. Penalty Pursuant to the False Claims Act, 31 U.S.C. 3729 et seq., persons who submit to HUD or a HUD intermediary claims that are false, fictitious or fraudulent are liable for an assessment equal to three times the amount of the claim, plus a penalty of between $5,500 and $11,000 per claim. The United States may take the position that the entire amount of its HAP payment, not merely the amount of the excess payment by the tenant, is the claim that should be trebled where PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 39713 landlords make false certifications concerning excess rent charged. Additionally, each periodic rent payment constitutes a separate claim; thus, in the Coleman case the court levied a $33,000 (6 × $5,500) penalty against the landlord for her $360 victimization of the tenant. Pertinent Information If you have pertinent information regarding this bulletin, please contact: Office of Legal Counsel, Office of the Inspector General, Department of Housing and Urban Development, 451 Seventh St., SW., Room 8260, Washington, DC 20410. Dated: July 1, 2008. Kenneth M. Donohue, Inspector General. [FR Doc. E8–15663 Filed 7–9–08; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Fish and Wildlife Service Fish and Wildlife Service and Confederated Salish and Kootenai Tribes Sign Annual Funding Agreement Fish and Wildlife Service, Interior. ACTION: Notice. AGENCY: SUMMARY: On June 19, 2008, the U.S. Fish and Wildlife Service (the Service) and the Confederated Salish and Kootenai Tribes (CSKT) (collectively the Parties) signed an annual funding agreement (AFA) under the Tribal SelfGovernance Act of 1994. The Tribal Self-Governance Act provides for the Secretary of the Interior (the Secretary) to negotiate and enter into an AFA with a tribe participating in Self-Governance, authorizing the tribe to plan, conduct, consolidate, and administer programs, services, functions, and activities, or portions thereof (Activities), administered by the Secretary, which are of special geographic, historical, or cultural significance to that tribe. This includes such Activities within the National Wildlife Refuge System (NWRS). Under the AFA, the CSKT will function in partnership with the Service and will be directly involved with our management mission at the National Bison Range Complex (NBRC). CSKT will perform a variety of Activities at the NBRC, including operational responsibility for mission-critical Activities such as the biology, maintenance, visitor services, and fire programs. The NBRC will remain a unit E:\FR\FM\10JYN1.SGM 10JYN1

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[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39712-39713]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15663]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5230-01]


OIG Fraud Alert: Bulletin on Charging Excess Rent in the Housing 
Choice Voucher Program

AGENCY: Office of the Inspector General, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This Federal Register notice provides important information 
recently issued by HUD's Office of the Inspector General (OIG) on a 
recurring problem in the Housing Choice Voucher program. The problem, 
which this notice

[[Page 39713]]

addresses, is landlords submitting false claims for periodic payments 
under housing assistance payment (HAP) contracts.

FOR FURTHER INFORMATION CONTACT: Bryan P. Saddler, Counsel to the 
Inspector General, Office of Legal Counsel Office of Inspector General, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 8260, Washington, DC 20410-4500, telephone (202) 708-1613 (this is 
not a toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal 
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Mission of HUD's OIG

    The mission of HUD's OIG is to provide policy direction to HUD and 
to conduct, supervise, and coordinate audits, investigations, and other 
activities for the purpose of promoting economy and efficiency in the 
administration of the programs and operations of HUD and preventing and 
detecting fraud and abuse in such programs.
    Consistent with this mission, Section II of this notice presents 
OIG's fraud information bulletin on charging excess rent in the Housing 
Choice Voucher program.

II. Fraud Information Bulletin: Excess Rent

Purpose

    This Bulletin highlights a recurring problem in the Housing Choice 
Voucher (HCV) program. Specifically, this Bulletin discusses the 
submission by landlords of false claims for periodic payments under 
Housing Assistance Payment (HAP) contracts, where such landlords have 
violated their continuing obligations to not charge tenants rents in 
excess of what is authorized by the HAP contracts.

The Problem

    Improperly requiring tenants to pay rent in excess of what is 
authorized by the applicable HAP contract represents both an actionable 
offense under the False Claims Act and deplorable behavior directed 
towards the very persons whom the HCV program was designed to serve. 
(Additionally, depending on the intent, such an action may qualify as a 
criminal offense under 18 U.S.C. 287, 1343, etc.) OIG will not tolerate 
such conduct, and rather will cooperate with efforts to bring offending 
landlords to justice and to remedy their wrongs.

Background

    HUD administers Federal aid to local housing agencies (HAs) that is 
intended to implement housing assistance programs for low-income 
residents. With respect to the HCV program, HUD funds HAs via annual 
contributions contracts. The HAs, in turn, enter into HAP contracts 
with individual landlords. These HAP contracts provide for periodic 
housing assistance payments on behalf of eligible low-income tenants. 
The HAP contracts also may require eligible tenants to make 
supplemental rent payments; however, the contracts expressly prohibit 
landlords from requiring tenants to pay rent in excess of what is 
authorized by the HAP contracts.
    Pursuant to qui tam complaints and citizen complaints filed 
throughout the nation and subsequent activities, OIG has become aware 
of a number of landlords who have improperly required tenants to pay 
rent in excess of what is authorized by the HAP contracts, and thereby 
submitted or caused to be submitted false claims for HAP contract 
periodic rent payments.

Example

    On July 29, 2005, a Connecticut tenant filed a qui tam complaint, 
under 31 U.S.C. 3730, against her former landlord. See Coleman v. 
Hernandez, 490 F. Supp.2d 278 (D. Conn. 2007). The tenant complained 
that pursuant to a HAP contract the landlord had agreed to accept 
$1,550 per month for the rental of an apartment in Stamford. Of this 
$1,550, the tenant was personally responsible for $20, and HUD via the 
HA paid the complementary $1,530. In spite of the explicit prohibition 
in the HAP contract, however, the landlord required the tenant to pay 
an ``additional rent payment'' of $60 on six separate occasions. In 
other words, the landlord inappropriately extracted an additional $360 
from the helpless tenant.
    OIG is aware of numerous similar examples of this sort of egregious 
conduct nationwide.

Penalty

    Pursuant to the False Claims Act, 31 U.S.C. 3729 et seq., persons 
who submit to HUD or a HUD intermediary claims that are false, 
fictitious or fraudulent are liable for an assessment equal to three 
times the amount of the claim, plus a penalty of between $5,500 and 
$11,000 per claim. The United States may take the position that the 
entire amount of its HAP payment, not merely the amount of the excess 
payment by the tenant, is the claim that should be trebled where 
landlords make false certifications concerning excess rent charged. 
Additionally, each periodic rent payment constitutes a separate claim; 
thus, in the Coleman case the court levied a $33,000 (6 x $5,500) 
penalty against the landlord for her $360 victimization of the tenant.

Pertinent Information

    If you have pertinent information regarding this bulletin, please 
contact: Office of Legal Counsel, Office of the Inspector General, 
Department of Housing and Urban Development, 451 Seventh St., SW., Room 
8260, Washington, DC 20410.

    Dated: July 1, 2008.
Kenneth M. Donohue,
Inspector General.
 [FR Doc. E8-15663 Filed 7-9-08; 8:45 am]
BILLING CODE 4210-67-P
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