42 U.S.C. § 1490s — Enforcement provisions

(a) Equity skimming.
(1) Criminal penalty. Whoever, as an owner^*, agent, employee, or manager, or who is otherwise in custody, control, or possession of property that secures a loan made or guaranteed under this subchapter, willfully uses, or authorizes the use of, any part of the rents, assets, proceeds, income^*, or other funds derived from that property for any purpose other than to meet the property’s actual, reasonable, and necessary expenses, or for any other purpose not authorized by this subchapter or its regulations, shall be fined under title 18, imprisoned for up to 5 years, or both.
(2) Civil sanctions. An individual or organization that owns, operates, works for, manages, or acts as an agent for such property is subject to a fine of up to $25,000 for each violation when money from the property is used for an unauthorized purpose. This fine may be added to other civil sanctions or civil monetary penalties allowed by law.
(b) Civil monetary penalties.
(1) In general. After giving notice and an opportunity for a hearing, the Secretary^* may impose a civil monetary penalty on an individual or organization, including its owners, officers, directors, general partners, limited partners, or employees, that knowingly and materially violates or participates in violating this subchapter, the Secretary’s regulations under it, or agreements made under it, by—
(A) giving the Secretary false information;
(B) giving the Secretary false certifications;
(C) failing to provide information the Secretary requested on time;
(D) failing to keep property securing a loan made or guaranteed under this subchapter in good repair^* and condition, as the Secretary determines;
(E) failing to provide project^* management acceptable to the Secretary; or
(F) failing to follow applicable civil-rights laws and regulations.
(2) Conditions for renewal or extension. The Secretary may require an expiring loan or assistance agreement under this subchapter not to be renewed or extended unless the owner agrees to additional conditions the Secretary sets, or signs a new agreement in the form the Secretary sets.
(3) Amount.
(A) In general. The penalty may not be more than the greater of twice the damages that the Department of Agriculture, the guaranteed lender, or the project securing the loan suffered or would have suffered because of the violation, or $50,000 per violation.
(B) Determination. When setting the amount, the Secretary must consider the seriousness of the offense; the violator’s earlier offenses, including offenses before this section was enacted; the violator’s ability to pay; harm to tenants; harm to the public; benefits the violator received from the violation; deterrence of future violations; and any other factors the Secretary sets by regulation.
(4) Payment of penalties. A penalty under this section may not be paid from money provided under this subchapter or from money of a project securing a loan made or guaranteed under this subchapter.
(5) Remedies for noncompliance.
(A) Judicial intervention. If a person or organization does not comply with the Secretary’s final decision imposing a penalty, the Secretary may ask the Attorney General to bring an action in an appropriate United States district court for a money judgment and any other available relief. The court may include in the judgment the United States’ attorney fees and other expenses for the action.
(B) Reviewability of determination. In that action, the court may not review whether the Secretary’s penalty decision was valid or appropriate.