Adjustment of Civil Monetary Penalty Amounts for 2024, 13614-13617 [2024-03736]
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13614
Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Rules and Regulations
Effective date for 2024 inflation
adjustment: March 25, 2024.
Subpart D—Performance Indicators
DATES:
7. Amend § 688.400 by revising
paragraph (f) to read as follows:
FOR FURTHER INFORMATION CONTACT:
■
§ 688.400 What are the performance
indicators for YouthBuild grants?
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(f) The percentage of participants in
unsubsidized employment during the
second quarter after exit from the
program who were employed by the
same employer in the second and fourth
quarters after exit; and
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Julie A. Su,
Acting Secretary of Labor.
[FR Doc. 2024–03279 Filed 2–22–24; 8:45 am]
BILLING CODE 4510–FN–P
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 from
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:
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
I. Background
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR–6446–F–01]
Adjustment of Civil Monetary Penalty
Amounts for 2024
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Final rule.
This rule provides for 2024
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).
SUMMARY:
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)).
Housing Community Development Act of 1992
(12 U.S.C. 1715z–13a(g)(2)).
HUD Reform Act of 1989 (12 U.S.C. 1735f–
15(c)(2)).
HUD Reform Act of 1989 (12 U.S.C. 1723i(a))
False Statements .....................
Advance Disclosure of Funding
Disclosure of Subsidy Layering
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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.
FHA Mortgagees and Lenders
Violations.
Other FHA Participants Violations.
Indian Home Loan Guarantee
Lender or Holder Violations.
Multifamily & Section 202 or
811 Owners Violations.
Ginnie Mae Issuers &
Custodians Violations.
1 Office of Management and Budget, M–24–07–,
Memorandum for the Heads of Executive
Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2024, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. (https://
www.whitehouse.gov/wp-content/uploads/2023/12/
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II. This Final Rule
This final rule makes the required
2024 inflation adjustment of HUD’s civil
money penalty amounts. The 2024
increases apply to penalties assessed 3
on or after this rule’s effective date (if
the violation occurred after the
enactment of the 2015 Act). HUD
provides a table showing how, for each
component, the penalties are being
adjusted for 2024 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 2023 adjustment
(88 FR 9745, February 15, 2023). In the
fifth column (‘‘2024 Adjusted
Amount’’), HUD lists the penalty after
applying the 2024 inflation adjustment.
Regulatory
citation
(24 CFR)
Previous amount
§ 28.10(a) .....
$13,508 ....................................
$13,946.
§ 28.10(b) .....
$13,508 ....................................
$13,946.
§ 30.20 ..........
$23,727 ....................................
$24,496.
§ 30.25 ..........
$23,727 ....................................
$24,496.
§ 30.35 ..........
Per Violation: $11,864; Per
Year: $2,372,677.
Per Violation: $11,864; Per
Year: $2,372,677.
Per Violation: $11,864; Per
Year: $2,372,677.
$59,316 ....................................
Per Violation: $12,249; Per
Year: $2,449,575.
Per Violation: $12,249; Per
Year: $2,449,575.
Per Violation: $12,249; Per
Year: $2,449,575.
$61,238.
Per Violation: $11,864; Per
Year: $2,372,677.
Per Violation: $12,249; Per
Year: $2,449,575.
§ 30.36 ..........
§ 30.40 ..........
§ 30.45 ..........
§ 30.50 ..........
M-24-07-Implementation-of-Penalty-InflationAdjustments-for-2024.pdf). (October 2023 CPI–U
(307.671)/October 2022 CPI–U (298.012) = 1.03241).
2 28 U.S.C. 2461 note.
3 For certain programs including Multifamily,
Section 202, and Section 811 mortgagors under 24
CFR 30.45 and Section 8 owners under 24 CFR
PO 00000
This annual adjustment is for 2024.
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 2024 is
1.03241.1 Pursuant to the 2015 Act,
adjustments are rounded to the nearest
dollar.2
Sfmt 4700
2024 Adjusted amount
30.68, penalty amounts provided in a pre-penalty
notice to a respondent pursuant to 24 CFR 30.70 is
not considered having been assessed under this
rule. For these programs, penalty amounts are
considered to be assessed once the penalty amounts
have been adjudicated as final or agreed upon
under a settlement agreement.
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Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Rules and Regulations
Description
Statutory citation
Regulatory
citation
(24 CFR)
Title I Broker & Dealers Violations.
Lead Disclosure Violation .........
HUD Reform Act of 1989 (12 U.S.C. 1703) ......
§ 30.60 ..........
Fair Housing Act Civil Penalties
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)) ...........
Manufactured Housing Regulations Violation.
Housing Community Development Act of 1974
(42 U.S.C. 5410).
Section 8 Owners Violations ....
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Lobbying Violation ....................
III. Justification for Final Rulemaking
for the 2024 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
advance 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 2024 inflation adjustment,
which HUD does not have discretion to
change. 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 2024 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 2024 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 2024 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
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Previous amount
§ 30.65 ..........
Per Violation: $12,249; Per
Year: $2,449,575.
$21,699.
§ 30.68 ..........
$46,102 ....................................
$47,596.
§ 87.400 ........
Min: $23,727; Max: $237,268 ..
Min: $24,496; Max: $244,958.
§ 180.671(a)
No Priors: $24,793; One Prior:
$61,982; Two or More Priors:
$123,965.
Per Violation: $3,446; Per
Year: $4,307,160.
No Priors: $25,597; One Prior:
$63,991; Two or More Priors:
$127,983.
Per Violation: $3,558; Per
Year: $4,446,755.
§ 3282.10 ......
IV. Findings and Certifications
Regulatory Review—Executive Orders
(E.O.) 12866, as Amended by E.O.
14094, and 13563
Under E.O. 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. E.O. 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.’’ E.O.
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.
Executive Order 14094 (Modernizing
Regulatory Review) amends section 3(f)
of Executive Order 12866 (Regulatory
Planning and Review), among other
things.
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 E.O. 12866, as
amended by E.O. 14094, and E.O.
13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
Frm 00029
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2024 Adjusted amount
Per Violation: $11,864; Per
Year: $2,372,677.
$21,018 ....................................
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.
PO 00000
13615
Sfmt 4700
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) 4
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.5 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
42
52
U.S.C. 1532.
U.S.C. 1535.
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Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Rules and Regulations
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.
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Environmental Review
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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.
§ 28.10 Basis for civil penalties and
assessments.
(a) * * *
(1) A civil penalty of not more than
$13,946 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:
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(b) * * *
(1) A civil penalty of not more than
$13,946 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a written statement that:
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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).
4. In § 30.20, revise paragraph (b) to
read as follows:
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§ 30.20 Ethical violations by HUD
employees.
Government contracts, Government
employees, Grant programs, Loan
programs, Lobbying, Penalties,
Reporting and recordkeeping
requirements.
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(b) Maximum penalty. The maximum
penalty is $24,496 for each violation.
■ 5. In § 30.25, revise paragraph (b) to
read as follows:
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.
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(b) Maximum penalty. The maximum
penalty is $24,496 for each violation.
■ 6. In § 30.35, revise the first sentence
in paragraph (c)(1) to read as follows:
24 CFR Part 3282
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2. Amend § 28.10 by revising the
introductory text of paragraphs (a)(1)
and (b)(1) to read as follows:
3. The authority citation for part 30
continues to read as follows:
24 CFR Part 87
Administrative practice and
procedure, Consumer protection,
Intergovernmental relations,
Investigations, Manufactured homes,
Reporting and recordkeeping
requirements, Warranties.
§ 30.35
Mortgagees and lenders.
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Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR
parts 28, 30, 87, 180, and 3282 to read
as follows:
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Authority: 28 U.S.C. 2461 note; 31 U.S.C.
3801–3812; 42 U.S.C. 3535(d).
§ 30.36 Other participants in FHA
programs.
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(c) Amount of penalty. The maximum
penalty is $12,249 for each violation, up
to a limit of $2,449,575 for all violations
committed during any one-year period.
* * *
8. In § 30.40, revise the first sentence
in paragraph (c) to read as follows:
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§ 30.40 Loan guarantees for Indian
housing.
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(c) Amount of penalty. The maximum
penalty is $12,249 for each violation, up
to a limit of $2,449,575 for all violations
committed during any one-year period.
* * *
9. In § 30.45, revise paragraph (g) to
read as follows:
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§ 30.45 Multifamily and section 202 or 811
mortgagors.
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(g) Maximum penalty. The maximum
penalty for each violation under
paragraphs (c) and (f) of this section is
$61,238.
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10. In § 30.50, revise the first sentence
in paragraph (c) to read as follows:
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Administrative practice and
procedure, Grant programs—housing
and community development, Loan
programs—housing and community
development, Mortgage insurance,
Mortgages, Penalties.
15:57 Feb 22, 2024
1. The authority citation for part 28
continues to read as follows:
PART 30—CIVIL MONEY PENALTIES:
CERTAIN PROHIBITED CONDUCT
24 CFR Part 30
VerDate Sep<11>2014
PART 28—IMPLEMENTATION OF THE
PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
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(c)(1) Amount of penalty. The
maximum penalty is $12,249 for each
violation, up to a limit of $2,449,575 for
all violations committed during any
one-year period. * * *
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■ 7. In § 30.36, revise the first sentence
in paragraph (c) to read as follows:
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§ 30.50
GNMA issuers and custodians.
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(c) Amount of penalty. The maximum
penalty is $12,249 for each violation, up
to a limit of $2,449,575 during any oneyear period. * * *
11. In § 30.60, revise paragraph (c) to
read as follows:
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§ 30.60 Dealers or sponsored third-party
originators.
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*
*
(c) Amount of penalty. The maximum
penalty is $12,249 for each violation, up
to a limit for any particular person of
$2,449,575 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.
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*
*
*
*
(b) Amount of penalty. The maximum
penalty is $21,699 for each violation.
13. In § 30.68, revise paragraph (c) to
read as follows:
■
§ 30.68
Section 8 owners.
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*
*
*
(c) Maximum penalty. The maximum
penalty for each violation under this
section is $47,596.
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*
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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
$24,496 and not more than $244,958 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
$24,496 and not more than $244,958 for
each such failure.
*
*
*
*
*
(e) First offenders under paragraphs
(a) or (b) of this section shall be subject
to a civil penalty of $24,496, absent
aggravating circumstances. Second and
subsequent offenses by persons shall be
subject to an appropriate civil penalty
between $24,496 and $244,958, 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:
■
one other discriminatory housing
practice and the adjudication was made
during the 5-year period preceding the
date of filing of the charge.
(3) $127,983, 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
18. The authority citation for part
3282 continues to read as follows:
■
Authority: 15 U.S.C. 2697, 28 U.S.C. 2461
note, 42 U.S.C. 3535(d), 5403, and 5424.
19. Revise § 3282.10 to read as
follows:
■
§ 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
penalty imposed under section 611 of
the Act shall be $3,558 for each
violation, up to a maximum of
$4,446,755 for any related series of
violations occurring within one year
from the date of the first violation.
Damon Smith,
General Counsel.
[FR Doc. 2024–03736 Filed 2–22–24; 8:45 am]
BILLING CODE 4210–67–P
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§ 180.671 Assessing civil penalties for Fair
Housing Act cases.
(a) * * *
(1) $25,597, 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) $63,991, 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
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EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
29 CFR Parts 1601 and 1614
[FR Doc. 2024–02764]
Amendment of Procedural and
Administrative Regulations To Include
the Pregnant Workers Fairness Act
(PWFA); Correction
Equal Employment
Opportunity Commission.
ACTION: Correcting amendments.
AGENCY:
On February 14, 2024, the
Equal Employment Opportunity
Commission (‘‘EEOC’’ or
PO 00000
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Fmt 4700
Sfmt 4700
‘‘Commission’’) amended its procedural
regulations to include references to the
Pregnant Workers Fairness Act
(‘‘PWFA’’). Due to drafting errors, two of
those changes would not be recognized
in the Code of Federal Regulations as
drafted, and the Commission therefore
issues these correcting amendments to
ensure that its procedural regulations
reference the PWFA where appropriate.
These correcting amendments
are effective February 23, 2024.
DATES:
FOR FURTHER INFORMATION CONTACT:
Kathleen Oram, Assistant Legal
Counsel, (202–900–8652 (voice); 1–800–
669–6820 (TTY)), Office of Legal
Counsel, 131 M Street NE, Washington,
DC 20507.
The
Pregnant Workers Fairness Act
(‘‘PWFA’’) became law on December 29,
2022, and became effective on June 27,
2023. In crafting the PWFA enforcement
section, Congress incorporated the
existing mechanisms and procedures for
redress of other forms of employment
discrimination. Procedural regulations
were amended to include the PWFA in
an interim final rule published in the
Federal Register on February 14, 2024
(89 FR 11167).1 When the interim final
rule was published, 29 CFR 1601.17(a)
was inadvertently included in
instruction 5.f., which replaced the text
‘‘title VII, the ADA, or GINA’’ with ‘‘title
VII, the ADA, GINA, or the PWFA,’’
instead of in instruction 6, which
replaced references to ‘‘title VII, the
ADA, and GINA’’ with ‘‘title VII, the
ADA, GINA, and the PWFA.’’
Additionally, the interim final rule’s
section heading for 29 CFR 1614.407
was revised without a specific
instruction to revise the section
heading. These correcting amendments
fix those errors.
SUPPLEMENTARY INFORMATION:
List of Subjects in 29 CFR Parts 1601
and 1614
Administrative practice and
procedure, Equal employment
opportunity.
RIN 3046–AB31
SUMMARY:
13617
Accordingly, 29 CFR parts 1601 and
1614 are amended by making the
following correcting amendments:
1 These PWFA references in procedural
regulations should not be confused with the EEOC’s
efforts to publish substantive interpretations of the
PWFA. The EEOC is engaged in separate
rulemaking to address those substantive provisions,
and issued a Notice of Proposed Rulemaking,
Regulations to Implement the Pregnant Workers
Fairness Act, 88 FR 54714 (Aug. 11, 2023). The final
rule is currently under OIRA review.
E:\FR\FM\23FER1.SGM
23FER1
]]>Agencies
[Federal Register Volume 89, Number 37 (Friday, February 23, 2024)]
[Rules and Regulations]
[Pages 13614-13617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03736]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-6446-F-01]
Adjustment of Civil Monetary Penalty Amounts for 2024
AGENCY: Office of the General Counsel, HUD.
ACTION: Final rule.
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SUMMARY: This rule provides for 2024 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).
DATES: Effective date for 2024 inflation adjustment: March 25, 2024.
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 from
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 2024. 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 2024 is
1.03241.\1\ Pursuant to the 2015 Act, adjustments are rounded to the
nearest dollar.\2\
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\1\ Office of Management and Budget, M-24-07-, Memorandum for
the Heads of Executive Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2024, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
(https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf).
(October 2023 CPI-U (307.671)/October 2022 CPI-U (298.012) =
1.03241).
\2\ 28 U.S.C. 2461 note.
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II. This Final Rule
This final rule makes the required 2024 inflation adjustment of
HUD's civil money penalty amounts. The 2024 increases apply to
penalties assessed \3\ on or after this rule's effective date (if the
violation occurred after the enactment of the 2015 Act). HUD provides a
table showing how, for each component, the penalties are being adjusted
for 2024 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 2023 adjustment (88 FR 9745, February 15,
2023). In the fifth column (``2024 Adjusted Amount''), HUD lists the
penalty after applying the 2024 inflation adjustment.
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\3\ For certain programs including Multifamily, Section 202, and
Section 811 mortgagors under 24 CFR 30.45 and Section 8 owners under
24 CFR 30.68, penalty amounts provided in a pre-penalty notice to a
respondent pursuant to 24 CFR 30.70 is not considered having been
assessed under this rule. For these programs, penalty amounts are
considered to be assessed once the penalty amounts have been
adjudicated as final or agreed upon under a settlement agreement.
----------------------------------------------------------------------------------------------------------------
Regulatory 2024 Adjusted
Description Statutory citation citation (24 CFR) Previous amount amount
----------------------------------------------------------------------------------------------------------------
False Claims.................... Omnibus Budget Sec. 28.10(a).. $13,508........... $13,946.
Reconciliation Act
of 1986 (31 U.S.C.
3802(a)(1)).
False Statements................ Omnibus Budget Sec. 28.10(b).. $13,508........... $13,946.
Reconciliation Act
of 1986 (31 U.S.C.
3802 (a)(2)).
Advance Disclosure of Funding... Department of Sec. 30.20..... $23,727........... $24,496.
Housing and Urban
Development Act
(42 U.S.C.
3537a(c)).
Disclosure of Subsidy Layering.. Department of Sec. 30.25..... $23,727........... $24,496.
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. $11,864; Per $12,249; Per
1735f-14(a)(2)). Year: $2,372,677. Year: $2,449,575.
Other FHA Participants HUD Reform Act of Sec. 30.36..... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,864; Per $12,249; Per
1735f-14(a)(2)). Year: $2,372,677. Year: $2,449,575.
Indian Home Loan Guarantee Housing Community Sec. 30.40..... Per Violation: Per Violation:
Lender or Holder Violations. Development Act of $11,864; Per $12,249; Per
1992 (12 U.S.C. Year: $2,372,677. Year: $2,449,575.
1715z-13a(g)(2)).
Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45..... $59,316........... $61,238.
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. $11,864; Per $12,249; Per
1723i(a)). Year: $2,372,677. Year: $2,449,575.
[[Page 13615]]
Title I Broker & Dealers HUD Reform Act of Sec. 30.60..... Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $11,864; Per $12,249; Per
1703). Year: $2,372,677. Year: $2,449,575.
Lead Disclosure Violation....... Title X-- Sec. 30.65..... $21,018........... $21,699.
Residential Lead-
Based Paint Hazard
Reduction Act of
1992 (42 U.S.C.
4852d(b)(1)).
Section 8 Owners Violations..... Multifamily Sec. 30.68..... $46,102........... $47,596.
Assisted Housing
Reform and
Affordability Act
of 1997 (42 U.S.C.
1437z-1(b)(2)).
Lobbying Violation.............. The Lobbying Sec. 87.400.... Min: $23,727; Max: Min: $24,496; Max:
Disclosure Act of $237,268. $244,958.
1995 (31 U.S.C.
1352).
Fair Housing Act Civil Penalties Fair Housing Act Sec. 180.671(a) No Priors: No Priors:
(42 U.S.C. $24,793; One $25,597; One
3612(g)(3)). Prior: $61,982; Prior: $63,991;
Two or More Two or More
Priors: $123,965. Priors: $127,983.
Manufactured Housing Regulations Housing Community Sec. 3282.10... Per Violation: Per Violation:
Violation. Development Act of $3,446; Per Year: $3,558; Per Year:
1974 (42 U.S.C. $4,307,160. $4,446,755.
5410).
----------------------------------------------------------------------------------------------------------------
III. Justification for Final Rulemaking for the 2024 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 advance
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 2024 inflation adjustment, which HUD does
not have discretion to change. 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 2024 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 2024 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 2024 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.
IV. Findings and Certifications
Regulatory Review--Executive Orders (E.O.) 12866, as Amended by E.O.
14094, and 13563
Under E.O. 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. E.O.
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.'' E.O. 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. Executive Order 14094 (Modernizing Regulatory Review) amends
section 3(f) of Executive Order 12866 (Regulatory Planning and Review),
among other things.
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 E.O. 12866, as amended by E.O. 14094, and E.O. 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) \4\
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.\5\ 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.
---------------------------------------------------------------------------
\4\ 2 U.S.C. 1532.
\5\ 2 U.S.C. 1535.
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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
[[Page 13616]]
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, Mortgages, Penalties.
24 CFR Part 87
Government contracts, Government employees, Grant programs, Loan
programs, Lobbying, Penalties, 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 to read 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. Amend Sec. 28.10 by revising the introductory text of paragraphs
(a)(1) and (b)(1) to read as follows:
Sec. 28.10 Basis for civil penalties and assessments.
(a) * * *
(1) A civil penalty of not more than $13,946 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 $13,946 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 $24,496 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 $24,496 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) Amount of penalty. The maximum penalty is $12,249 for each
violation, up to a limit of $2,449,575 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) Amount of penalty. The maximum penalty is $12,249 for each
violation, up to a limit of $2,449,575 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) Amount of penalty. The maximum penalty is $12,249 for each
violation, up to a limit of $2,449,575 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 $61,238.
* * * * *
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) Amount of penalty. The maximum penalty is $12,249 for each
violation, up to a limit of $2,449,575 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 $12,249 for each
violation, up to a limit for any particular person of $2,449,575 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 $21,699 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 $47,596.
* * * * *
[[Page 13617]]
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 $24,496 and not more than
$244,958 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 $24,496 and not
more than $244,958 for each such failure.
* * * * *
(e) First offenders under paragraphs (a) or (b) of this section
shall be subject to a civil penalty of $24,496, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $24,496 and $244,958,
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:
Sec. 180.671 Assessing civil penalties for Fair Housing Act cases.
(a) * * *
(1) $25,597, 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) $63,991, 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) $127,983, 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. 2697, 28 U.S.C. 2461 note, 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 penalty imposed under
section 611 of the Act shall be $3,558 for each violation, up to a
maximum of $4,446,755 for any related series of violations occurring
within one year from the date of the first violation.
Damon Smith,
General Counsel.
[FR Doc. 2024-03736 Filed 2-22-24; 8:45 am]
BILLING CODE 4210-67-P
