§ 26-160Introduction.
§ 26-161Disapproval of owner. [24 CFR 982.306, 982.54(d)(8)]
§ 26-162Owner restrictions and penalties. [24 CFR 982.453]
§ 26-163Change in ownership.
It is the policy of the WHA to recruit owners to participate in the voucher program. The WHA will provide owners with prompt and professional service in order to maintain an adequate supply of available housing throughout the jurisdiction of the WHA. The regulations define when the WHA must disallow an owner participation in the program, and they provide the WHA discretion to disapprove or otherwise restrict the participation of owners in certain categories. This article describes the criteria for owner disapproval, and the various penalties for owner violations.
The owner does not have a right to participate in the program. For purposes of this section, "owner" includes a principal or other interested party.
The WHA will disapprove the owner for the following reasons:
HUD has informed the WHA that the owner has been disbarred, suspended, or subject to a limited denial of participation under 24 CFR Part 24.
HUD has informed the WHA that the federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and such action is pending.
HUD has informed the WHA that a court or administrative agency has determined that the owner has violated the Fair Housing Act or other federal equal opportunity requirements.
Unless his/her lease was effective prior to June 17, 1998, the owner may not be a parent, child, grandparent, grandchild, sister or brother of any family member. The WHA will waive this restriction as a reasonable accommodation for a family member who is a person with a disability.
The owner has violated obligations under a housing assistance payments contract under Section 8 of the 1937 Act (42 U.S.C. § 1437f).
The owner has committed fraud, bribery or any other corrupt act in connection with any federal housing program.
The owner has engaged in drug-related criminal activity or any violent criminal activity.
The owner has a history or practice of noncompliance with the HQS for units leased under the tenant-based programs or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program.
The owner has a history or practice of renting units that fail to meet state or local housing codes.
If an owner has committed fraud or abuse or is guilty of frequent or serious contract violations, the WHA will restrict the owner from future participation in the program for a period of time commensurate with the seriousness of the offense. The WHA may also terminate some or all contracts with the owner.
Before imposing any penalty against an owner, the WHA will review all relevant factors pertaining to the case and will consider such factors as the owner's record of compliance and the number of violations.
See the Program Integrity Addendum for guidance as to how owner fraud will be handled.
A change in ownership may require execution of a new contract.
The WHA may approve the assignment of the HAP contract at the old owner's request. The WHA may approve the assignment, since it is a party to the contract. The WHA may deny approval of assignment of the contract for any of the reasons listed in § 26-161 of this article.
The WHA will process a change of ownership only upon the written request of the new owner and only if accompanied by a copy of the escrow statement or other document showing the transfer of title, recorded deed and the employee identification number or social security number of the new owner.
