Double damages for unauthorized use of housing projects assets and income
(1) Action to recover assets or income
(1)Action to recover assets or income#
(A) In general The Secretary may request the Attorney General to bring an action in a United States district court to recover any assets or income used by any person in violation of the provisions of a loan made or guaranteed by the Secretary under this section or in violation of any applicable statute or regulation.
(B) Improper documentation For purposes of this subsection, a use of assets or income in violation of the applicable loan, loan guarantee, statute, or regulation shall include any use for which the documentation in the books and accounts does not establish that the use was made for a reasonable operating expense or necessary repair of the project or for which the documentation has not been maintained in accordance with the requirements of the Secretary and in reasonable condition for proper audit.
(C) Definition For the purposes of this subsection, the term “person” means— (i) any individual or entity that borrows funds in accordance with programs authorized by this section; (ii) any individual or entity holding 25 percent or more interest of any entity that borrows funds in accordance with programs authorized by this section; and (iii) any officer, director, or partner of an entity that borrows funds in accordance with programs authorized by this section.
(2)Amount recoverable#
(A) In general In any judgment favorable to the United States entered under this subsection, the Attorney General may recover double the value of the assets and income of the project that the court determines to have been used in violation of the provisions of a loan made or guaranteed by the Secretary under this section or any applicable statute or regulation, plus all costs related to the action, including reasonable attorney and auditing fees.
(B) Application of recovered funds Notwithstanding any other provision of law, the Secretary may use amounts recovered under this subsection for activities authorized under this section and such funds shall remain available for such use until expended.
(3)Time limitation#
Notwithstanding any other provision of law, an action under this subsection may be commenced at any time during the 6-year period beginning on the date that the Secretary discovered or should have discovered the violation of the provisions of this section or any related statutes or regulations.
(4)Continued availability of other remedies#
The remedy provided in this subsection is in addition to and not in substitution of any other remedies available to the Secretary or the United States.