---
kind: "section"
citation: "24 C.F.R. § 1000.534"
title: "24"
number: "1000.534"
heading: "What constitutes substantial noncompliance?"
url: "https://uscodex.org/cfr/24/1000.534"
---

# §1000.534. What constitutes substantial noncompliance?


HUD will review the circumstances of each noncompliance with NAHASDA and the regulations on a case-by-case basis to determine if the noncompliance is substantial. This review is a two step process. First, there must be a noncompliance with NAHASDA or these regulations. Second, the noncompliance must be substantial. A noncompliance is substantial if:

- (a) The noncompliance has a material effect on the recipient meeting its planned activities as described in its Indian Housing Plan;
- (b) The noncompliance represents a material pattern or practice of activities constituting willful noncompliance with a particular provision of NAHASDA or the regulations, even if a single instance of noncompliance would not be substantial;
- (c) The noncompliance involves the obligation or expenditure of a material amount of the NAHASDA funds budgeted by the recipient for a material activity; or
- (d) **The noncompliance places the housing program at substantial risk of fraud, waste or abuse.**

## Notes

### Amendments

[63 FR 12349, Mar. 12, 1998, as amended at 77 FR 71529, Dec. 3, 2012]

### Authority

Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).

### Source

Source: 63 FR 12349, Mar. 12, 1998, unless otherwise noted.

### Amendments

[63 FR 12349, Mar. 12, 1998, as amended at 77 FR 71529, Dec. 3, 2012]