Title 42 — The Public Health and WelfareRelease 119-73

§12753 Penalties for misuse of funds

Title 42 › Chapter CHAPTER 130— - NATIONAL AFFORDABLE HOUSING › Subchapter SUBCHAPTER II— - INVESTMENT IN AFFORDABLE HOUSING › Part Part A— - HOME Investment Partnerships › § 12753

Last updated Apr 6, 2026|Official source

Summary

If a participating jurisdiction fails to follow the program rules, and after the Secretary gives reasonable notice and a chance for a hearing, the Secretary must reduce that jurisdiction’s HOME Investment Trust Fund credit by the amount spent improperly and keep the reduction until the problem is fixed. The Secretary may also stop withdrawals for the affected activities, limit the jurisdiction to one or more model programs under section 12743, or remove the jurisdiction from future allocations or reallocations of funds.

Full Legal Text

Title 42, §12753

The Public Health and Welfare — Source: USLM XML via OLRC

If the Secretary finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply substantially with any provision of this part and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall reduce the line of credit in the participating jurisdiction’s HOME Investment Trust Fund by the amount of any expenditures that were not in accordance with the requirements of this subchapter, and the Secretary may—

(1)prevent withdrawals from the participating jurisdiction’s HOME Investment Trust Fund for activities affected by such failure to comply;

(2)restrict the participating jurisdiction’s activities under this subchapter to activities that conform to one or more model programs made available under section 12743 of this title; or

(3)remove the participating jurisdiction from participation in allocations or reallocations of funds made available under this part.

Reference

Citations & Metadata

Citation

42 U.S.C. § 12753

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73