---
kind: "section"
citation: "42 U.S.C. § 12753"
title: "42"
title_heading: "The Public Health and Welfare"
number: "12753"
heading: "Program enforcement and penalties for noncompliance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/12753"
units:
  - "Chapter 130 — National Affordable Housing"
  - "Subchapter II — Investment in Affordable Housing"
  - "Part A — HOME Investment Partnerships"
---

# §12753. Program enforcement and penalties for noncompliance


If the [Secretary](/usc/42/12704.md?p=16) finds after reasonable notice and opportunity for hearing that a [participating jurisdiction](/usc/42/12704.md?p=4) has failed to comply substantially with any provision of this part, including any provision applicable throughout the period required by [section 12745(a)(1)(E) of this title](/usc/42/12745.md?p=a-1-E) and applicable regulations, and until the [Secretary](/usc/42/12704.md?p=16) is satisfied that there is no longer any such failure to comply, the [Secretary](/usc/42/12704.md?p=16) shall reduce the line of credit in the [participating jurisdiction](/usc/42/12704.md?p=4)’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](/usc/42/12704.md?p=16) may—

- (1) prevent withdrawals from the [participating jurisdiction](/usc/42/12704.md?p=4)’s HOME Investment Trust Fund for activities affected by such failure to comply;
- (2) restrict the [participating jurisdiction](/usc/42/12704.md?p=4)’s activities under this subchapter to activities that conform to one or more model programs made available under [section 12743 of this title](/usc/42/12743.md);
- (3) remove the [participating jurisdiction](/usc/42/12704.md?p=4) from participation in [allocations](/usc/42/2021b.md?p=2) or reallocations of funds made available under this part; or
- (4) reduce payments to the [participating jurisdiction](/usc/42/12704.md?p=4) under this part by an amount equal to the amount of such payments that were not expended by the [participating jurisdiction](/usc/42/12704.md?p=4) in accordance with this subchapter.

## Source credit

(Pub. L. 101–625, title II, § 223, Nov. 28, 1990, 104 Stat. 4112; Pub. L. 119–101, title V, § 501(t)(4), July 11, 2026, 140 Stat. 916.)

## Notes

### Editorial Notes

### Amendments

2026—Pub. L. 119–101, § 501(t)(4)(B), inserted “, including any provision applicable throughout the period required by section 12745(a)(1)(E) of this title and applicable regulations,” after “any provision of this part” in introductory provisions.

Pub. L. 119–101, § 501(t)(4)(A), substituted “Program enforcement and penalties for noncompliance” for “Penalties for misuse of funds” in section catchline.

Par. (4). Pub. L. 119–101, § 501(t)(4)(C) to (E), added par. (4).