Sec. 225.
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/bill/114/s/2844/pcs/section-225·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary shall take action under subsection
(b)when a multifamily housing project with a section 8 contract or contract for similar project-based assistance: receives a Uniform Physical Condition Standards
(UPCS)score of 30 or less; fails to certify in writing to the Secretary within 3 days that all Exigent Health and Safety deficiencies identified by the inspector at the project have been corrected; or receives a UPCS score between 31 and 59 and has received consecutive scores of less than 60 on UPCS inspections. Such requirements shall apply to insured and noninsured projects with assistance attached to the units under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ), but do not apply to such units assisted under section 8(o)(13) ( 42 U.S.C. 1437f(o)(13) ) or to public housing units assisted with capital or operating funds under section 9 of the United States Housing Act of 1937 ( 42 U.S.C. 1437g ). The Secretary shall notify the owner and provide an opportunity for response within 30 days. If the violations remain, the Secretary shall develop a Compliance, Disposition and Enforcement Plan within 60 days and must provide the owner with a Notice of Default with a specified timetable, determined by the Secretary, for correcting all deficiencies. The Secretary must also provide a copy of the Notice of Default to the tenants, the local government, any mortgagees, and any contract administrator. If the owner’s appeal results in a UPCS score of 60 or above, the Secretary may withdraw the Notice of Default. At the end of the time period for correcting all deficiencies specified in the Notice of Default, if the owner fails to fully correct such deficiencies, the Secretary may— require immediate replacement of project management with a management agent approved by the Secretary; impose civil money penalties; abate the section 8 contract, including partial abatement, as determined by the Secretary, until all deficiencies have been corrected; pursue transfer of the project to an owner, approved by the Secretary under established procedures, which will be obligated to promptly make all required repairs and to accept renewal of the assistance contract as long as such renewal is offered; transfer the existing section 8 contract to another project or projects and owner or owners; pursue exclusionary sanctions, including suspensions or debarments from Federal programs; seek judicial appointment of a receiver to manage the property and cure all project deficiencies or seek a judicial order of specific performance requiring the owner to cure all project deficiencies; work with the owner, lender, or other related party to stabilize the property in an attempt to preserve the property through compliance, transfer of ownership, or an infusion of capital provided by a third-party that requires time to effectuate; or take any other regulatory or contractual remedies available as deemed necessary and appropriate by the Secretary. The Secretary shall also take appropriate steps to ensure that project-based contracts remain in effect, subject to the exercise of contractual abatement remedies to assist relocation of tenants for major threats to health and safety after written notice to and informed consent of the affected tenants and use of other remedies set forth above. To the extent the Secretary determines, in consultation with the tenants and the local government, that the property is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of
(1)the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 ( MAHRAA ) and
(2)environmental conditions that cannot be remedied in a cost-effective fashion, the Secretary may, in consultation with the tenants of that property, contract for project-based rental assistance payments with an owner or owners of other existing housing properties, or provide other rental assistance. The Secretary shall report quarterly on all properties covered by this section that are assessed through the Real Estate Assessment Center and have UPCS physical inspection scores of less than 60 or have received an unsatisfactory management and occupancy review within the past 36 months. The report shall include: The enforcement actions being taken to address such conditions, including imposition of civil money penalties and termination of subsidies, and identify properties that have such conditions multiple times; and Actions that the Department of Housing and Urban Development is taking to protect tenants of such identified properties.
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