Adjustment of Civil Monetary Penalty Amounts for 2023, 9745-9749 [2023-03142]
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9745
Rules and Regulations
Federal Register
Vol. 88, No. 31
Wednesday, February 15, 2023
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR–6375–F–01]
Adjustment of Civil Monetary Penalty
Amounts for 2023
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Final rule.
This rule provides for 2023
inflation adjustments of civil monetary
penalty amounts required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
Act). This rule also revises HUD’s policy
and applies annually adjusted penalty
amounts to the date the penalty is
assessed after the effective date of the
rule (if the violation occurred after the
enactment of the 2015 Act).
DATES: This final rule is effective March
17, 2023.
FOR FURTHER INFORMATION CONTACT:
Aaron Santa Anna, Associate General
Counsel for Legislation and Regulations,
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Act) (Pub. L. 114–74,
Sec. 701), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410), requires agencies to make annual
adjustments to civil monetary penalty
(CMP) amounts for inflation
‘‘notwithstanding section 553 of title 5,
United States Code.’’ Section 553 refers
to the Administrative Procedure Act,
which provides for advance notice and
public comment during the rulemaking
process. However, as explained in
Section III below, HUD has determined
that advance notice and public
comment on this final rule is
unnecessary.
This annual adjustment is for 2023.
The annual adjustment is based on the
percent change between the U.S.
Description
Statutory citation
False Claims ......................
Omnibus Budget Reconciliation Act of
1986 (31 U.S.C. 3802(a)(1)).
Omnibus Budget Reconciliation Act of
1986 (31 U.S.C. 3802(a)(2)).
Department of Housing and Urban Development Act (42 U.S.C. 3537a(c)).
Department of Housing and Urban Development Act (42 U.S.C. 3545(f)).
HUD Reform Act of 1989 (12 U.S.C.
1735f–14(a)(2)).
HUD Reform Act of 1989 (12 U.S.C.
1735f–14(a)(2)).
False Statements ..............
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Office of the General Counsel,
Department of Housing and Urban
Development, 451 7th Street SW, Room
10276, Washington, DC 20024;
telephone number 202–402–5138 (this
is not a toll-free number). HUD
welcomes and is prepared to receive
calls from individuals who are deaf or
hard of hearing, as well as individuals
with speech or communication
disabilities. To learn more about how to
make an accessible telephone call,
please visit https://www.fcc.gov/
consumers/guides/telecommunicationsrelay-service-trs.
SUPPLEMENTARY INFORMATION:
Advance Disclosure of
Funding.
Disclosure of Subsidy
Layering.
FHA Mortgagees and
Lenders Violations.
Other FHA Participants
Violations.
1 Office of Management and Budget, M–23–05–,
Memorandum for the Heads of Executive
Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2023, Pursuant to
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II. This Final Rule
A. Required 2023 Inflation Adjustments
This final rule makes the required
2023 inflation adjustment of HUD’s civil
money penalty amounts. The 2023
increases apply to penalties assessed on
or after this rule’s effective date. HUD
provides a table showing how, for each
component, the penalties are being
adjusted for 2023 pursuant to the 2015
Act. In the first column (‘‘Description’’),
HUD provides a description of the
penalty. In the second column
(‘‘Statutory Citation’’), HUD provides
the United States Code statutory citation
providing for the penalty. In the third
column (‘‘Regulatory Citation’’), HUD
provides the Code of Federal
Regulations citation under Title 24 for
the penalty. In the fourth column
(‘‘Previous Amount’’), HUD provides the
amount of the penalty pursuant to the
rule implementing the 2022 adjustment
(87 FR 24418, April 26, 2022). In the
fifth column (‘‘2023 Adjusted
Amount’’), HUD lists the penalty after
applying the 2023 inflation adjustment.
Regulatory
citation
(24 CFR)
Previous amount
§ 28.10(a) ...
$12,537 ..............................
$13,508.
§ 28.10(b) ...
$12,537 ..............................
$13,508.
§ 30.20 .......
$22,021 ..............................
$23,727.
§ 30.25 .......
$22,021 ..............................
$23,727.
§ 30.35 .......
Per
Per
Per
Per
Per
Per
Per
Per
§ 30.36 .......
Violation: $11,011 .......
Year: $2,202,123 ........
Violation: $11,011 .......
Year: $2,202,123 ........
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. https://
www.whitehouse.gov/wp-content/uploads/2022/12/
M-23-05-CMP-CMP-Guidance.pdf). (October 2022
PO 00000
Department of Labor’s Consumer Price
Index for All Urban Consumers (‘‘CPI–
U’’) for the month of October preceding
the date of the adjustment, and the CPI–
U for October of the prior year (28
U.S.C. 2461 note, section (5)(b)(1)).
Based on that formula, the cost-of-living
adjustment multiplier for 2023 is
1.07745.1 Pursuant to the 2015 Act,
adjustments are rounded to the nearest
dollar.2
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2023 Adjusted amount
Violation: $11,864.
Year: $2,372,677.
Violation: $11,864.
Year: $2,372,677.
CPI–U (298.012)/October 2021 CPI–U (276.589) =
1.07745.)
2 28 U.S.C. 2461 note.
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Statutory citation
Indian Home Loan Guarantee Lender or Holder
Violations.
Multifamily & Section 202
or 811 Owners Violations.
Ginnie Mae Issuers &
Custodians Violations.
Title I Broker & Dealers
Violations.
Lead Disclosure Violation ..
Housing Community Development Act of
1992 (12 U.S.C. 1715z–13a(g)(2)).
§ 30.40 .......
Per Violation: $11,011 .......
Per Year: $2,202,123 ........
Per Violation: $11,864.
Per Year: $2,372,677.
HUD Reform Act of 1989 (12 U.S.C.
1735f–15(c)(2)).
§ 30.45 .......
$55,052 ..............................
$59,316.
HUD Reform Act of 1989 (12 U.S.C.
1723i(a)).
HUD Reform Act of 1989 (12 U.S.C.
1703).
Title X—Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42
U.S.C. 4852d(b)(1)).
Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42
U.S.C. 1437z–1(b)(2)).
The Lobbying Disclosure Act of 1995 (31
U.S.C. 1352).
Fair Housing Act (42 U.S.C. 3612(g)(3))
§ 30.50 .......
§ 30.65 .......
Per Violation: $11,011 .......
Per Year: $2,202,123 ........
Per Violation: $11,011 .......
Per Year: $2,202,123 ........
$19,507 ..............................
Per Violation: $11,864.
Per Year: $2,372,677.
Per Violation: $11,864.
Per Year: $2,372,677.
$21,018.
§ 30.68 .......
$42,788 ..............................
$46,102.
§ 87.400 .....
Housing Community Development Act of
1974 (42 U.S.C. 5410).
§ 3282.10 ...
Min: $22,021 ......................
Max: $220,213 ...................
No Priors: $23,011 ............
One Prior: $57,527 ............
Two or More Priors:
$115,054.
Per Violation: $3,198 .........
Per Year: $3,997,550 ........
Min: $23,727.
Max: $237,268.
No Priors: $24,793.
One Prior: $61,982.
Two or More Priors:
$123,965.
Per Violation: $3,446.
Per Year: $4,307,160.
Section 8 Owners Violations.
Lobbying Violation .............
Fair Housing Act Civil Penalties.
Manufactured Housing
Regulations Violation.
B. HUD’s Policy Change: Applying
Adjusted Penalties to Violations
Assessed After the Effective Date of the
Rule
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Regulatory
citation
(24 CFR)
Description
This final rule also revises HUD’s
policy to apply annually adjusted
penalties to violations assessed after the
effective date of each annual adjustment
(if the violation occurred after the
enactment of the 2015 Act). Since the
enactment of the 2015 Act, HUD has not
applied the adjustments retroactively
and provided that the inflation-adjusted
penalty amounts applied to violations
occurring on or after the rule’s effective
date. On September 21, 2022, HUD
published a notice entitled,
‘‘Adjustment of Civil Monetary Penalty
Amounts: Request for Comments’’ (87
FR 57655) which announced that HUD
was considering revising its policy
regarding how it implements the annual
inflation-adjusted civil money penalties.
Specifically, HUD stated that it was
considering applying the adjusted
penalties to the date that the penalty
was assessed rather than to the date the
violation occurred. HUD explained its
consideration to revise the regulation
came after revisiting Section 6 of the
2015 Act, the Office of Management and
Budget guidance (M–22–07), and a
review of the penalty adjustments
published by other Federal agencies.
Through this notice of request for
information, HUD sought public input
on the impact of applying increased
penalty amounts on the date the penalty
is assessed rather than the date of the
violation.
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§ 30.60 .......
§ 180.671(a)
Previous amount
In response to HUD’s request for
comment, HUD received one comment
signed by 25 fair housing organizations.
The comment supported HUD’s
proposal to apply increased penalty
amounts to the date the penalty is
assessed. The comment stated that the
policy change would bring HUD in line
with other Federal agencies which tie
penalties to the date of assessment
rather than the date of violation. The
comment asserted that revising HUD’s
policy regarding when it imposes
adjusted penalty amounts would help
deter violations of the Fair Housing Act.
Additionally, the organizations pointed
out that a lengthy period of time may
pass between when a violation occurs
and when damages and civil penalties
are awarded. The comment explained
that the time between these events
could be substantial since after a
violation it may take time for a
complaint to be filed, and then an
investigation is conducted, a
determination is issued, and a hearing is
scheduled and held before civil
penalties are awarded. The
organizations also stated that when
penalties are assessed as of the date of
the violation, it defeats Congressional
purpose: there is less of a deterrent
effect because the amount is ‘‘outdated’’
and does not keep up with the cost of
living.
The comment letter also stated that
assessing appropriate civil penalties in
fair housing cases should not be
underestimated, as it emphasizes the
importance of complying with fair
housing laws. Lastly, ‘‘to deter egregious
PO 00000
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2023 Adjusted amount
behavior, to respond to the nature of the
violation, and to protect the public
interest in assuring that discriminatory
conduct is not repeated,’’ the fair
housing organizations believe it is
important for HUD to institute a process
that will permit the maximum inflation
adjustments of civil penalty amounts
when the penalty is determined justified
and assessed.
In considering the public comment
and HUD’s consideration and
experience in implementing inflationadjusted penalty amounts, HUD is
announcing that it will apply the
inflation-adjusted penalty amounts on
the date the penalty is assessed rather
than the date the violation occurred.
HUD is making this change after
revisiting Section 6 of the 2015 Act
which provides that an ‘‘increase under
this Act in a civil monetary penalty
shall apply only to civil monetary
penalties, including those whose
associated violation predated such
increase, which are assessed after the
date the increase takes effect.’’ (28
U.S.C. 2461 note.) OMB guidance (M–
22–07 and M–23–05), which provides
the annual inflation multiplier also
provides that the adjusted penalty
applies to ‘‘penalties assessed after the
effective date of the applicable
adjustment.’’ Lastly, a review of the
penalty adjustments published by other
Federal agencies suggests that they
apply the inflation-adjusted penalty
amounts to penalties assessed after the
date of the increase as long as the
violation occurred after the enactment
of the 2015 Act.
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III. Justification for Final Rulemaking
for the 2023 Adjustments
HUD generally publishes regulations
for public comment before issuing a rule
for effect, in accordance with its own
regulations on rulemaking in 24 CFR
part 10. However, part 10 provides for
exceptions to the general rule if the
agency finds good cause to omit
advanced notice and public
participation. The good cause
requirement is satisfied when prior
public procedure is ‘‘impractical,
unnecessary, or contrary to the public
interest’’ (see 24 CFR 10.1). As
discussed, this final rule makes the
required 2023 inflation adjustment,
which HUD does not have discretion to
change, and a change to HUD’s policy
to apply increased penalty amounts to
the date the violation is assessed, which
HUD issued a request for public
comment for on September 21, 2022.
Moreover, the 2015 Act specifies that a
delay in the effective date under the
Administrative Procedure Act is not
required for annual adjustments under
the 2015 Act. HUD has determined,
therefore, that it is unnecessary to delay
the effectiveness of the 2023 inflation
adjustments to solicit public comments.
Section 7(o) of the Department of
Housing and Urban Development Act
(42 U.S.C. 3535(o)) requires that any
HUD regulation implementing any
provision of the Department of Housing
and Urban Development Reform Act of
1989 that authorizes the imposition of a
civil money penalty may not become
effective until after the expiration of a
public comment period of not less than
60 days. This rule does not authorize
the imposition of a civil money
penalty—rather, it makes a standard
inflation adjustment to penalties that
were previously authorized. As noted
above, the 2023 inflation adjustments
are made in accordance with a
statutorily prescribed formula that does
not provide for agency discretion.
Accordingly, a delay in the
effectiveness of the 2023 inflation
adjustments in order to provide the
public with an opportunity to comment
is unnecessary because the 2015 Act
exempts the adjustments from the need
for delay, the rule does not authorize the
imposition of a civil money penalty or
alter the requirements in any way, and,
in any event, HUD would not have the
discretion to make changes as a result of
any comments. Additionally, regarding
revising HUD’s policy regarding
determining implementing the inflationadjusted penalties, HUD published a
request for public comment on applying
annually adjusted penalty amounts to
violations assessed after the effective
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date of the rule (if the violation occurred
after the enactment of the 2015 Act).
IV. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review) (58
FR 51735), a determination must be
made whether a regulatory action is
significant and, therefore, subject to
review by the Office of Management and
Budget (OMB) in accordance with the
requirements of the order. Executive
Order 13563 (Improving Regulations
and Regulatory Review) (76 FR 3821)
directs executive agencies to analyze
regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. As discussed
above in this preamble, this final rule
adjusts existing civil monetary penalties
for inflation by a statutorily required
amount.
HUD determined that this rule was
not significant under Executive Order
12866 and Executive Order 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Because HUD
has determined that good cause exists to
issue this rule without prior public
comment, this rule is not subject to the
requirement to publish an initial or final
regulatory flexibility analysis under the
RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA) 3
requires that an agency prepare a
budgetary impact statement before
promulgating a rule that includes a
Federal mandate that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year. If a budgetary impact
statement is required, section 205 of
32
PO 00000
U.S.C. 1532.
Frm 00003
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UMRA also requires an agency to
identify and consider a reasonable
number of regulatory alternatives before
promulgating a rule.4 However, the
UMRA applies only to rules for which
an agency publishes a general notice of
proposed rulemaking. As discussed
above, HUD has determined, for good
cause, that prior notice and public
comment is not required on this rule
and, therefore, the UMRA does not
apply to this final rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) (64 FR 43255) prohibits
an agency from publishing any rule that
has federalism implications if the rule
either imposes substantial direct
compliance costs on State and local
governments and is not required by
statute, or the rule preempts State law,
unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
rule will not have federalism
implications and would not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the
Executive order.
Environmental Review
This final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern, or regulate, real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
new construction, or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this final rule
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and
procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and
procedure, Grant programs—housing
and community development, Loan
programs—housing and community
development, Mortgage insurance,
Penalties.
24 CFR Part 87
Government contracts, Government
employees, Grant programs, Loan
programs, Lobbying, Penalties,
42
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U.S.C. 1535.
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(b) Maximum penalty. The maximum
penalty is $23,727 for each violation.
■ 5. In § 30.25, revise paragraph (b) to
read as follows:
Reporting and recordkeeping
requirements.
24 CFR Part 180
Administrative practice and
procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities,
Investigations, Mortgages, Penalties,
Reporting and recordkeeping
requirements.
§ 30.25 Violations by applicants for
assistance.
*
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $23,727 for each violation.
■ 6. In § 30.35, revise the first sentence
in paragraph (c)(1) to read as follows:
24 CFR Part 3282
Administrative practice and
procedure, Consumer protection,
Intergovernmental relations,
Investigations, Manufactured homes,
Reporting and recordkeeping
requirements, Warranties.
Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR
parts 28, 30, 87, 180, and 3282 as
follows:
PART 28—IMPLEMENTATION OF THE
PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
1. The authority citation for part 28
continues to read as follows:
■
Authority: 28 U.S.C. 2461 note; 31 U.S.C.
3801–3812; 42 U.S.C. 3535(d).
2. In § 28.10, revise paragraphs (a)(1)
introductory text and (b)(1) introductory
text to read as follows:
■
Mortgagees and lenders.
*
*
*
*
*
(c)(1) * * * The maximum penalty is
$11,864 for each violation, up to a limit
of $2,372,677 for all violations
committed during any one-year period.
* * *
*
*
*
*
*
■ 7. In § 30.36, revise the first sentence
in paragraph (c) to read as follows:
§ 30.36 Other participants in FHA
programs.
*
*
*
*
*
(c) * * * The maximum penalty is
$11,864 for each violation, up to a limit
of $2,372,677 for all violations
committed during any one-year period.
* * *
■ 8. In § 30.40, revise the first sentence
in paragraph (c) to read as follows:
§ 30.40 Loan guarantees for Indian
housing.
§ 28.10 Basis for civil penalties and
assessments.
(a) * * *
(1) A civil penalty of not more than
$13,508 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a claim that the person
knows or has reason to know:
*
*
*
*
*
(b) * * *
(1) A civil penalty of not more than
$13,508 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a written statement that:
*
*
*
*
*
PART 30—CIVIL MONEY PENALTIES:
CERTAIN PROHIBITED CONDUCT
3. The authority citation for part 30
continues to read as follows:
■
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§ 30.35
*
*
*
*
*
(c) * * * The maximum penalty is
$11,864 for each violation, up to a limit
of $2,372,677 for all violations
committed during any one-year period.
* * *
■ 9. In § 30.45, revise paragraph (g) to
read as follows:
§ 30.45 Multifamily and section 202 or 811
mortgagors.
*
*
*
*
*
(g) Maximum penalty. The maximum
penalty for each violation under
paragraphs (c) and (f) of this section is
$59,316.
*
*
*
*
*
■ 10. In § 30.50, revise the first sentence
in paragraph (c) to read as follows:
§ 30.50
GNMA issuers and custodians.
*
4. In § 30.20, revise paragraph (b) to
read as follows:
*
*
*
*
(c) * * * The maximum penalty is
$11,864 for each violation, up to a limit
of $2,372,677 during any one-year
period. * * *
■ 11. In § 30.60, revise paragraph (c) to
read as follows:
§ 30.20 Ethical violations by HUD
employees.
§ 30.60 Dealers or sponsored third-party
originators.
*
*
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28
U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z–1 and 3535(d).
■
*
*
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*
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*
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(c) Amount of penalty. The maximum
penalty is $11,864 for each violation, up
to a limit for any particular person of
$2,372,677 during any one-year period.
■ 12. In § 30.65, revise paragraph (b) to
read as follows:
§ 30.65 Failure to disclose lead-based
paint hazards.
*
*
*
*
*
(b) Amount of penalty. The maximum
penalty is $21,018 for each violation.
■ 13. In § 30.68, revise paragraph (c) to
read as follows:
§ 30.68
Section 8 owners.
*
*
*
*
*
(c) Maximum penalty. The maximum
penalty for each violation under this
section is $46,102.
*
*
*
*
*
PART 87—NEW RESTRICTIONS ON
LOBBYING
14. The authority citation for part 87
continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 31 U.S.C.
1352; 42 U.S.C. 3535(d).
15. In § 87.400, revise paragraphs (a),
(b), and (e) to read as follows:
■
§ 87.400
Penalties.
(a) Any person who makes an
expenditure prohibited herein shall be
subject to a civil penalty of not less than
$23,727 and not more than $237,268 for
each such expenditure.
(b) Any person who fails to file or
amend the disclosure form (see
appendix B to this part) to be filed or
amended if required herein, shall be
subject to a civil penalty of not less than
$23,727 and not more than $237,268 for
each such failure.
*
*
*
*
*
(e) First offenders under paragraph (a)
or (b) of this section shall be subject to
a civil penalty of $23,727, absent
aggravating circumstances. Second and
subsequent offenses by persons shall be
subject to an appropriate civil penalty
between $23,727 and $237,268 as
determined by the agency head or his or
her designee.
*
*
*
*
*
PART 180—CONSOLIDATED HUD
HEARING PROCEDURES FOR CIVIL
RIGHTS MATTERS
16. The authority citation for part 180
continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794;
42 U.S.C. 2000d–1, 3535(d), 3601–3619,
5301–5320, and 6103.
17. In § 180.671, revise paragraphs
(a)(1) through (3) to read as follows:
■
E:\FR\FM\15FER1.SGM
15FER1
Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 / Rules and Regulations
§ 180.671 Assessing civil penalties for Fair
Housing Act cases.
DEPARTMENT OF THE INTERIOR
(a) * * *
(1) $24,793, if the respondent has not
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act or any state or
local fair housing law, or in any
licensing or regulatory proceeding
conducted by a Federal, State, or local
governmental agency, to have
committed any prior discriminatory
housing practice.
(2) $61,982, if the respondent has
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act, or under any state
or local fair housing law, or in any
licensing or regulatory proceeding
conducted by a Federal, State, or local
government agency, to have committed
one other discriminatory housing
practice and the adjudication was made
during the 5-year period preceding the
date of filing of the charge.
(3) $123,965, if the respondent has
been adjudged in any administrative
hearings or civil actions permitted
under the Fair Housing Act, or under
any state or local fair housing law, or in
any licensing or regulatory proceeding
conducted by a Federal, state, or local
government agency, to have committed
two or more discriminatory housing
practices and the adjudications were
made during the 7-year period
preceding the date of filing of the
charge.
*
*
*
*
*
Bureau of Ocean Energy Management
PART 3282—MANUFACTURED HOME
PROCEDURAL AND ENFORCEMENT
REGULATIONS
18. The authority citation for part
3282 continues to read as follows:
■
Authority: 15 U.S.C. 2967; 42 U.S.C.
3535(d), 5403, and 5424.
19. Revise § 3282.10 to read as
follows:
■
ddrumheller on DSK120RN23PROD with RULES
§ 3282.10
Civil and criminal penalties.
Failure to comply with these
regulations may subject the party in
question to the civil and criminal
penalties provided for in section 611 of
the Act, 42 U.S.C. 5410. The maximum
amount of penalties imposed under
section 611 of the Act shall be $3,446
for each violation, up to a maximum of
$4,307,160 for any related series of
violations occurring within one year
from the date of the first violation.
Damon Smith,
General Counsel.
[FR Doc. 2023–03142 Filed 2–14–23; 8:45 am]
BILLING CODE 4210–67–P
VerDate Sep<11>2014
23:37 Feb 14, 2023
Jkt 259001
30 CFR Parts 550 and 553
RIN 1010–AE17
2023 Civil Penalties Inflation
Adjustments for Oil, Gas, and Sulfur
Operations in the Outer Continental
Shelf
Bureau of Ocean Energy
Management, Interior.
ACTION: Final rule.
AGENCY:
This final rule implements
the 2023 inflation adjustments to the
maximum daily civil monetary penalties
contained in the Bureau of Ocean
Energy Management (BOEM) regulations
for violations of the Outer Continental
Shelf Lands Act (OCSLA) and the Oil
Pollution Act of 1990 (OPA), pursuant
to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Improvements Act) and relevant
Office of Management and Budget
(OMB) guidance. The 2023 adjustment
multiplier of 1.07745 accounts for 1 year
of inflation from October 2021 through
October 2022.
DATES: This rule is effective on February
15, 2023.
FOR FURTHER INFORMATION CONTACT:
Questions regarding the inflation
adjustment methodology or amount
should be directed to Martin Heinze,
Economics Division, BOEM, at
martin.heinze@boem.gov or at (703)
787–1010. Questions regarding the
timing of this adjustment or the
applicability of the regulations should
be directed to Satrina Lord, Office of
Regulations, BOEM at satrina.lord@
boem.gov or at (703) 787–1250.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Legal Authority
II. Background and Purpose
III. Calculation of the 2023 Adjustments
IV. Statutory and Executive Order Reviews
A. Statutes
1. National Environmental Policy Act
2. Regulatory Flexibility Act
3. Paperwork Reduction Act
4. Unfunded Mandates Reform Act
5. Small Business Regulatory Enforcement
Fairness Act
6. Congressional Review Act
B. Executive Orders (E.O.)
1. Governmental Actions and Interference
With Constitutionally Protected Property
Rights (E.O. 12630)
2. Regulatory Planning and Review (E.O.
12866); Improving Regulation and
Regulatory Review (E.O. 13563)
3. Civil Justice Reform (E.O. 12988)
4. Federalism (E.O. 13132)
Frm 00005
Fmt 4700
Sfmt 4700
5. Consultation and Coordination With
Indian Tribal Governments (E.O. 13175)
6. Actions Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use (E.O. 13211)
I. Legal Authority
[Docket ID: BOEM–2023–0001]
PO 00000
9749
OCSLA authorizes the Secretary of the
Interior (the Secretary) to impose a daily
civil monetary penalty for a violation of
OCSLA or its implementing regulations,
leases, permits, or orders. It also directs
the Secretary to adjust the maximum
penalty at least every 3 years to reflect
any inflation increase in the Consumer
Price Index. 43 U.S.C. 1350(b)(1).
Similarly, OPA authorizes civil
monetary penalties for failure to comply
with OPA’s financial responsibility
provisions or their implementing
regulations. 33 U.S.C. 2716a(a). OPA
does not include a maximum daily civil
penalty inflation adjustment provision.
Id.
The Improvements Act 1 requires that
Federal agencies publish inflation
adjustments to their civil monetary
penalties in the Federal Register not
later than January 15 annually.2 Public
Law 114–74, sec. 701(b)(1). The
purposes of these inflation adjustments
are to maintain the deterrent effect of
civil penalties and to further the policy
goals of the underlying statutes. Federal
Civil Penalties Inflation Adjustment Act
of 1990, Public Law 101–410, sec. 2
(codified at 28 U.S.C. 2461 note).
II. Background and Purpose
BOEM implemented the 2022
inflation adjustment for its civil
monetary penalties through a final rule
entitled ‘‘2022 Civil Penalties Inflation
Adjustments for Oil, Gas, and Sulfur
Operations in the Outer Continental
Shelf,’’ which was published in the
Federal Register. 87 FR 15333 (March
18, 2022). That rule accounted for
inflation for the 12-month period
between October 2020 and October
2021.
The OMB memorandum M–23–05 3
reiterates agency responsibilities under
1 The Improvements Act amended the Federal
Civil Penalties Inflation Adjustment Act of 1990.
See Public Law 101–410 (codified at 28 U.S.C. 2461
note).
2 Under the Improvements Act, Federal agencies
were required to adjust their civil monetary
penalties for inflation with an initial ‘‘catch-up’’
adjustment through an interim final rulemaking in
2016 and must make subsequent inflation
adjustments not later than January 15 annually,
beginning in 2017. Public Law 114–74, sec.
701(b)(1).
3 OMB Memorandum M–23–05 ‘‘Implementation
of Penalty Inflation Adjustments for 2023, Pursuant
to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015’’ is available at
https://www.whitehouse.gov/wp-content/uploads/
2022/12/M-23-05-CMP-CMP-Guidance.pdf).
E:\FR\FM\15FER1.SGM
15FER1
]]>Agencies
[Federal Register Volume 88, Number 31 (Wednesday, February 15, 2023)]
[Rules and Regulations]
[Pages 9745-9749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03142]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 /
Rules and Regulations
[[Page 9745]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-6375-F-01]
Adjustment of Civil Monetary Penalty Amounts for 2023
AGENCY: Office of the General Counsel, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule provides for 2023 inflation adjustments of civil
monetary penalty amounts required by the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015
Act). This rule also revises HUD's policy and applies annually adjusted
penalty amounts to the date the penalty is assessed after the effective
date of the rule (if the violation occurred after the enactment of the
2015 Act).
DATES: This final rule is effective March 17, 2023.
FOR FURTHER INFORMATION CONTACT: Aaron Santa Anna, Associate General
Counsel for Legislation and Regulations, Office of the General Counsel,
Department of Housing and Urban Development, 451 7th Street SW, Room
10276, Washington, DC 20024; telephone number 202-402-5138 (this is not
a toll-free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech or communication disabilities. To learn more about how to
make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Act) (Pub. L. 114-74, Sec. 701), which further
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub. L. 101-410), requires agencies to make annual adjustments to
civil monetary penalty (CMP) amounts for inflation ``notwithstanding
section 553 of title 5, United States Code.'' Section 553 refers to the
Administrative Procedure Act, which provides for advance notice and
public comment during the rulemaking process. However, as explained in
Section III below, HUD has determined that advance notice and public
comment on this final rule is unnecessary.
This annual adjustment is for 2023. The annual adjustment is based
on the percent change between the U.S. Department of Labor's Consumer
Price Index for All Urban Consumers (``CPI-U'') for the month of
October preceding the date of the adjustment, and the CPI-U for October
of the prior year (28 U.S.C. 2461 note, section (5)(b)(1)). Based on
that formula, the cost-of-living adjustment multiplier for 2023 is
1.07745.\1\ Pursuant to the 2015 Act, adjustments are rounded to the
nearest dollar.\2\
---------------------------------------------------------------------------
\1\ Office of Management and Budget, M-23-05-, Memorandum for
the Heads of Executive Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2023, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf). (October 2022 CPI-U (298.012)/October 2021 CPI-U
(276.589) = 1.07745.)
\2\ 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
II. This Final Rule
A. Required 2023 Inflation Adjustments
This final rule makes the required 2023 inflation adjustment of
HUD's civil money penalty amounts. The 2023 increases apply to
penalties assessed on or after this rule's effective date. HUD provides
a table showing how, for each component, the penalties are being
adjusted for 2023 pursuant to the 2015 Act. In the first column
(``Description''), HUD provides a description of the penalty. In the
second column (``Statutory Citation''), HUD provides the United States
Code statutory citation providing for the penalty. In the third column
(``Regulatory Citation''), HUD provides the Code of Federal Regulations
citation under Title 24 for the penalty. In the fourth column
(``Previous Amount''), HUD provides the amount of the penalty pursuant
to the rule implementing the 2022 adjustment (87 FR 24418, April 26,
2022). In the fifth column (``2023 Adjusted Amount''), HUD lists the
penalty after applying the 2023 inflation adjustment.
----------------------------------------------------------------------------------------------------------------
Regulatory 2023 Adjusted
Description Statutory citation citation (24 CFR) Previous amount amount
----------------------------------------------------------------------------------------------------------------
False Claims.................... Omnibus Budget Sec. 28.10(a)... $12,537........... $13,508.
Reconciliation
Act of 1986 (31
U.S.C.
3802(a)(1)).
False Statements................ Omnibus Budget Sec. 28.10(b)... $12,537........... $13,508.
Reconciliation
Act of 1986 (31
U.S.C.
3802(a)(2)).
Advance Disclosure of Funding... Department of Sec. 30.20...... $22,021........... $23,727.
Housing and Urban
Development Act
(42 U.S.C.
3537a(c)).
Disclosure of Subsidy Layering.. Department of Sec. 30.25...... $22,021........... $23,727.
Housing and Urban
Development Act
(42 U.S.C.
3545(f)).
FHA Mortgagees and Lenders HUD Reform Act of Sec. 30.35...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,011. $11,864.
1735f-14(a)(2)). Per Year: Per Year:
$2,202,123. $2,372,677.
Other FHA Participants HUD Reform Act of Sec. 30.36...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,011. $11,864.
1735f-14(a)(2)). Per Year: Per Year:
$2,202,123. $2,372,677.
[[Page 9746]]
Indian Home Loan Guarantee Housing Community Sec. 30.40...... Per Violation: Per Violation:
Lender or Holder Violations. Development Act $11,011. $11,864.
of 1992 (12 Per Year: Per Year:
U.S.C. 1715z- $2,202,123. $2,372,677.
13a(g)(2)).
Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45...... $55,052........... $59,316.
Owners Violations. 1989 (12 U.S.C.
1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians HUD Reform Act of Sec. 30.50...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,011. $11,864.
1723i(a)). Per Year: Per Year:
$2,202,123. $2,372,677.
Title I Broker & Dealers HUD Reform Act of Sec. 30.60...... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,011. $11,864.
1703). Per Year: Per Year:
$2,202,123. $2,372,677.
Lead Disclosure Violation....... Title X-- Sec. 30.65...... $19,507........... $21,018.
Residential Lead-
Based Paint
Hazard Reduction
Act of 1992 (42
U.S.C.
4852d(b)(1)).
Section 8 Owners Violations..... Multifamily Sec. 30.68...... $42,788........... $46,102.
Assisted Housing
Reform and
Affordability Act
of 1997 (42
U.S.C. 1437z-
1(b)(2)).
Lobbying Violation.............. The Lobbying Sec. 87.400..... Min: $22,021...... Min: $23,727.
Disclosure Act of Max: $220,213..... Max: $237,268.
1995 (31 U.S.C.
1352).
Fair Housing Act Civil Penalties Fair Housing Act Sec. 180.671(a). No Priors: $23,011 No Priors:
(42 U.S.C. One Prior: $57,527 $24,793.
3612(g)(3)). Two or More One Prior:
Priors: $115,054. $61,982.
Two or More
Priors: $123,965.
Manufactured Housing Regulations Housing Community Sec. 3282.10.... Per Violation: Per Violation:
Violation. Development Act $3,198. $3,446.
of 1974 (42 Per Year: Per Year:
U.S.C. 5410). $3,997,550. $4,307,160.
----------------------------------------------------------------------------------------------------------------
B. HUD's Policy Change: Applying Adjusted Penalties to Violations
Assessed After the Effective Date of the Rule
This final rule also revises HUD's policy to apply annually
adjusted penalties to violations assessed after the effective date of
each annual adjustment (if the violation occurred after the enactment
of the 2015 Act). Since the enactment of the 2015 Act, HUD has not
applied the adjustments retroactively and provided that the inflation-
adjusted penalty amounts applied to violations occurring on or after
the rule's effective date. On September 21, 2022, HUD published a
notice entitled, ``Adjustment of Civil Monetary Penalty Amounts:
Request for Comments'' (87 FR 57655) which announced that HUD was
considering revising its policy regarding how it implements the annual
inflation-adjusted civil money penalties. Specifically, HUD stated that
it was considering applying the adjusted penalties to the date that the
penalty was assessed rather than to the date the violation occurred.
HUD explained its consideration to revise the regulation came after
revisiting Section 6 of the 2015 Act, the Office of Management and
Budget guidance (M-22-07), and a review of the penalty adjustments
published by other Federal agencies. Through this notice of request for
information, HUD sought public input on the impact of applying
increased penalty amounts on the date the penalty is assessed rather
than the date of the violation.
In response to HUD's request for comment, HUD received one comment
signed by 25 fair housing organizations. The comment supported HUD's
proposal to apply increased penalty amounts to the date the penalty is
assessed. The comment stated that the policy change would bring HUD in
line with other Federal agencies which tie penalties to the date of
assessment rather than the date of violation. The comment asserted that
revising HUD's policy regarding when it imposes adjusted penalty
amounts would help deter violations of the Fair Housing Act.
Additionally, the organizations pointed out that a lengthy period of
time may pass between when a violation occurs and when damages and
civil penalties are awarded. The comment explained that the time
between these events could be substantial since after a violation it
may take time for a complaint to be filed, and then an investigation is
conducted, a determination is issued, and a hearing is scheduled and
held before civil penalties are awarded. The organizations also stated
that when penalties are assessed as of the date of the violation, it
defeats Congressional purpose: there is less of a deterrent effect
because the amount is ``outdated'' and does not keep up with the cost
of living.
The comment letter also stated that assessing appropriate civil
penalties in fair housing cases should not be underestimated, as it
emphasizes the importance of complying with fair housing laws. Lastly,
``to deter egregious behavior, to respond to the nature of the
violation, and to protect the public interest in assuring that
discriminatory conduct is not repeated,'' the fair housing
organizations believe it is important for HUD to institute a process
that will permit the maximum inflation adjustments of civil penalty
amounts when the penalty is determined justified and assessed.
In considering the public comment and HUD's consideration and
experience in implementing inflation-adjusted penalty amounts, HUD is
announcing that it will apply the inflation-adjusted penalty amounts on
the date the penalty is assessed rather than the date the violation
occurred. HUD is making this change after revisiting Section 6 of the
2015 Act which provides that an ``increase under this Act in a civil
monetary penalty shall apply only to civil monetary penalties,
including those whose associated violation predated such increase,
which are assessed after the date the increase takes effect.'' (28
U.S.C. 2461 note.) OMB guidance (M-22-07 and M-23-05), which provides
the annual inflation multiplier also provides that the adjusted penalty
applies to ``penalties assessed after the effective date of the
applicable adjustment.'' Lastly, a review of the penalty adjustments
published by other Federal agencies suggests that they apply the
inflation-adjusted penalty amounts to penalties assessed after the date
of the increase as long as the violation occurred after the enactment
of the 2015 Act.
[[Page 9747]]
III. Justification for Final Rulemaking for the 2023 Adjustments
HUD generally publishes regulations for public comment before
issuing a rule for effect, in accordance with its own regulations on
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions
to the general rule if the agency finds good cause to omit advanced
notice and public participation. The good cause requirement is
satisfied when prior public procedure is ``impractical, unnecessary, or
contrary to the public interest'' (see 24 CFR 10.1). As discussed, this
final rule makes the required 2023 inflation adjustment, which HUD does
not have discretion to change, and a change to HUD's policy to apply
increased penalty amounts to the date the violation is assessed, which
HUD issued a request for public comment for on September 21, 2022.
Moreover, the 2015 Act specifies that a delay in the effective date
under the Administrative Procedure Act is not required for annual
adjustments under the 2015 Act. HUD has determined, therefore, that it
is unnecessary to delay the effectiveness of the 2023 inflation
adjustments to solicit public comments.
Section 7(o) of the Department of Housing and Urban Development Act
(42 U.S.C. 3535(o)) requires that any HUD regulation implementing any
provision of the Department of Housing and Urban Development Reform Act
of 1989 that authorizes the imposition of a civil money penalty may not
become effective until after the expiration of a public comment period
of not less than 60 days. This rule does not authorize the imposition
of a civil money penalty--rather, it makes a standard inflation
adjustment to penalties that were previously authorized. As noted
above, the 2023 inflation adjustments are made in accordance with a
statutorily prescribed formula that does not provide for agency
discretion.
Accordingly, a delay in the effectiveness of the 2023 inflation
adjustments in order to provide the public with an opportunity to
comment is unnecessary because the 2015 Act exempts the adjustments
from the need for delay, the rule does not authorize the imposition of
a civil money penalty or alter the requirements in any way, and, in any
event, HUD would not have the discretion to make changes as a result of
any comments. Additionally, regarding revising HUD's policy regarding
determining implementing the inflation-adjusted penalties, HUD
published a request for public comment on applying annually adjusted
penalty amounts to violations assessed after the effective date of the
rule (if the violation occurred after the enactment of the 2015 Act).
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review) (58 FR
51735), a determination must be made whether a regulatory action is
significant and, therefore, subject to review by the Office of
Management and Budget (OMB) in accordance with the requirements of the
order. Executive Order 13563 (Improving Regulations and Regulatory
Review) (76 FR 3821) directs executive agencies to analyze regulations
that are ``outmoded, ineffective, insufficient, or excessively
burdensome, and to modify, streamline, expand, or repeal them in
accordance with what has been learned.'' Executive Order 13563 also
directs that, where relevant, feasible, and consistent with regulatory
objectives, and to the extent permitted by law, agencies are to
identify and consider regulatory approaches that reduce burdens and
maintain flexibility and freedom of choice for the public. As discussed
above in this preamble, this final rule adjusts existing civil monetary
penalties for inflation by a statutorily required amount.
HUD determined that this rule was not significant under Executive
Order 12866 and Executive Order 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because HUD has determined that good cause exists to issue this rule
without prior public comment, this rule is not subject to the
requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \3\
requires that an agency prepare a budgetary impact statement before
promulgating a rule that includes a Federal mandate that may result in
the expenditure by State, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more in any one
year. If a budgetary impact statement is required, section 205 of UMRA
also requires an agency to identify and consider a reasonable number of
regulatory alternatives before promulgating a rule.\4\ However, the
UMRA applies only to rules for which an agency publishes a general
notice of proposed rulemaking. As discussed above, HUD has determined,
for good cause, that prior notice and public comment is not required on
this rule and, therefore, the UMRA does not apply to this final rule.
---------------------------------------------------------------------------
\3\ 2 U.S.C. 1532.
\4\ 2 U.S.C. 1535.
---------------------------------------------------------------------------
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') (64 FR 43255)
prohibits an agency from publishing any rule that has federalism
implications if the rule either imposes substantial direct compliance
costs on State and local governments and is not required by statute, or
the rule preempts State law, unless the agency meets the consultation
and funding requirements of section 6 of the Executive Order. This rule
will not have federalism implications and would not impose substantial
direct compliance costs on State and local governments or preempt State
law within the meaning of the Executive order.
Environmental Review
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern, or regulate, real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and procedure, Grant programs--housing and
community development, Loan programs--housing and community
development, Mortgage insurance, Penalties.
24 CFR Part 87
Government contracts, Government employees, Grant programs, Loan
programs, Lobbying, Penalties,
[[Page 9748]]
Reporting and recordkeeping requirements.
24 CFR Part 180
Administrative practice and procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities, Investigations, Mortgages,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 3282
Administrative practice and procedure, Consumer protection,
Intergovernmental relations, Investigations, Manufactured homes,
Reporting and recordkeeping requirements, Warranties.
Accordingly, for the reasons described in the preamble, HUD amends
24 CFR parts 28, 30, 87, 180, and 3282 as follows:
PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF
1986
0
1. The authority citation for part 28 continues to read as follows:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C.
3535(d).
0
2. In Sec. 28.10, revise paragraphs (a)(1) introductory text and
(b)(1) introductory text to read as follows:
Sec. 28.10 Basis for civil penalties and assessments.
(a) * * *
(1) A civil penalty of not more than $13,508 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a claim that the person knows or has reason to
know:
* * * * *
(b) * * *
(1) A civil penalty of not more than $13,508 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a written statement that:
* * * * *
PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
0
3. The authority citation for part 30 continues to read as follows:
Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z-1 and 3535(d).
0
4. In Sec. 30.20, revise paragraph (b) to read as follows:
Sec. 30.20 Ethical violations by HUD employees.
* * * * *
(b) Maximum penalty. The maximum penalty is $23,727 for each
violation.
0
5. In Sec. 30.25, revise paragraph (b) to read as follows:
Sec. 30.25 Violations by applicants for assistance.
* * * * *
(b) Maximum penalty. The maximum penalty is $23,727 for each
violation.
0
6. In Sec. 30.35, revise the first sentence in paragraph (c)(1) to
read as follows:
Sec. 30.35 Mortgagees and lenders.
* * * * *
(c)(1) * * * The maximum penalty is $11,864 for each violation, up
to a limit of $2,372,677 for all violations committed during any one-
year period. * * *
* * * * *
0
7. In Sec. 30.36, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.36 Other participants in FHA programs.
* * * * *
(c) * * * The maximum penalty is $11,864 for each violation, up to
a limit of $2,372,677 for all violations committed during any one-year
period. * * *
0
8. In Sec. 30.40, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.40 Loan guarantees for Indian housing.
* * * * *
(c) * * * The maximum penalty is $11,864 for each violation, up to
a limit of $2,372,677 for all violations committed during any one-year
period. * * *
0
9. In Sec. 30.45, revise paragraph (g) to read as follows:
Sec. 30.45 Multifamily and section 202 or 811 mortgagors.
* * * * *
(g) Maximum penalty. The maximum penalty for each violation under
paragraphs (c) and (f) of this section is $59,316.
* * * * *
0
10. In Sec. 30.50, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.50 GNMA issuers and custodians.
* * * * *
(c) * * * The maximum penalty is $11,864 for each violation, up to
a limit of $2,372,677 during any one-year period. * * *
0
11. In Sec. 30.60, revise paragraph (c) to read as follows:
Sec. 30.60 Dealers or sponsored third-party originators.
* * * * *
(c) Amount of penalty. The maximum penalty is $11,864 for each
violation, up to a limit for any particular person of $2,372,677 during
any one-year period.
0
12. In Sec. 30.65, revise paragraph (b) to read as follows:
Sec. 30.65 Failure to disclose lead-based paint hazards.
* * * * *
(b) Amount of penalty. The maximum penalty is $21,018 for each
violation.
0
13. In Sec. 30.68, revise paragraph (c) to read as follows:
Sec. 30.68 Section 8 owners.
* * * * *
(c) Maximum penalty. The maximum penalty for each violation under
this section is $46,102.
* * * * *
PART 87--NEW RESTRICTIONS ON LOBBYING
0
14. The authority citation for part 87 continues to read as follows:
Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).
0
15. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as
follows:
Sec. 87.400 Penalties.
(a) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than $23,727 and not more than
$237,268 for each such expenditure.
(b) Any person who fails to file or amend the disclosure form (see
appendix B to this part) to be filed or amended if required herein,
shall be subject to a civil penalty of not less than $23,727 and not
more than $237,268 for each such failure.
* * * * *
(e) First offenders under paragraph (a) or (b) of this section
shall be subject to a civil penalty of $23,727, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $23,727 and $237,268 as
determined by the agency head or his or her designee.
* * * * *
PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS
MATTERS
0
16. The authority citation for part 180 continues to read as follows:
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1,
3535(d), 3601-3619, 5301-5320, and 6103.
0
17. In Sec. 180.671, revise paragraphs (a)(1) through (3) to read as
follows:
[[Page 9749]]
Sec. 180.671 Assessing civil penalties for Fair Housing Act cases.
(a) * * *
(1) $24,793, if the respondent has not been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act or any state or local fair housing law, or in any licensing or
regulatory proceeding conducted by a Federal, State, or local
governmental agency, to have committed any prior discriminatory housing
practice.
(2) $61,982, if the respondent has been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act, or under any state or local fair housing law, or in any licensing
or regulatory proceeding conducted by a Federal, State, or local
government agency, to have committed one other discriminatory housing
practice and the adjudication was made during the 5-year period
preceding the date of filing of the charge.
(3) $123,965, if the respondent has been adjudged in any
administrative hearings or civil actions permitted under the Fair
Housing Act, or under any state or local fair housing law, or in any
licensing or regulatory proceeding conducted by a Federal, state, or
local government agency, to have committed two or more discriminatory
housing practices and the adjudications were made during the 7-year
period preceding the date of filing of the charge.
* * * * *
PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS
0
18. The authority citation for part 3282 continues to read as follows:
Authority: 15 U.S.C. 2967; 42 U.S.C. 3535(d), 5403, and 5424.
0
19. Revise Sec. 3282.10 to read as follows:
Sec. 3282.10 Civil and criminal penalties.
Failure to comply with these regulations may subject the party in
question to the civil and criminal penalties provided for in section
611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed
under section 611 of the Act shall be $3,446 for each violation, up to
a maximum of $4,307,160 for any related series of violations occurring
within one year from the date of the first violation.
Damon Smith,
General Counsel.
[FR Doc. 2023-03142 Filed 2-14-23; 8:45 am]
BILLING CODE 4210-67-P
