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c. Debarment (09/14/2015)
Violations of statutes or serious or repeated violations of FHA requirements may lead to the debarment of an individual or other FHA program participant.
i. Definition
Debarment is a final determination by an authorizing official that the individual has engaged in prohibited conduct and is not presently responsible. Debarment excludes an individual from participating in most federal government programs for a specified period of time.
ii. Cause
FHA may debar an individual for the reasons listed in 2 CFR § 180.800, including, but not limited to:
• criminal conviction or civil judgment for commission of fraud in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction;
• criminal conviction or civil judgment for commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice;
• criminal conviction or civil judgment for violation of federal or state antitrust statutes;
• criminal conviction or civil judgment for the commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the individual’s present responsibilities;
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE E. Enforcement
5. Actions and Sanctions Against Individuals and Other Program Participants
• violation of the terms of a public agreement or transaction so serious as to affect the integrity of an agency program;
• knowingly doing business with an ineligible person;
• failure to pay a single substantial debt, or a number of outstanding debts, owed to any federal agency or instrumentality, provided the debt is uncontested, or, if contested, provided all legal and administrative remedies have been exhausted; or
• any other serious or compelling cause that affects the present responsibility of the individual.
iii. Effective Date
A debarment is not effective until the individual has received a notice of proposed debarment and has had an opportunity to contest the proposed debarment. After the debarring official issues a decision, the debarment is effective immediately.
iv. Duration
The period of debarment is based on the seriousness of the cause(s) upon which the debarment is based. Generally, the period of debarment should not exceed three years. However, if circumstances warrant, the debarring official may impose a longer period of debarment.
v. Processing and Appeals
An individual may appeal a proposed debarment by providing the debarring official with information in opposition to the debarment within 30 Days of receipt of the notice of debarment. Information may be provided orally or in writing; important information provided orally must also be submitted in writing for the official record.
Debarment processing and appeal procedures are set forth in 2 CFR §§ 180.800–180.885.