---
kind: "section"
citation: "42 U.S.C. § 1490s"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1490s"
heading: "Enforcement provisions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1490s"
units:
  - "Chapter 8A — Slum Clearance, Urban Renewal, and Farm Housing"
  - "Subchapter III — Farm Housing"
---

# §1490s. Enforcement provisions

- (a) **Equity skimming—**
  - (1) **Criminal penalty—** Whoever, as an [owner](/usc/42/13641.md?p=4), agent, employee, or manager, or is otherwise in custody, control, or possession of property that is security for a loan made or guaranteed under this subchapter, willfully uses, or authorizes the use, of any part of the rents, assets, proceeds, income, or other funds derived from such property, for any purpose other than to meet actual, reasonable, and necessary expenses of the property, or for any other purpose not authorized by this subchapter or the regulations adopted pursuant to this subchapter, shall be fined under [title 18](/usc/18.md) or imprisoned not more than 5 years, or both.
  - (2) **Civil sanctions—** An entity or individual who as an [owner](/usc/42/13641.md?p=4), operator, employee, or manager, or who acts as an agent for a property that is security for a loan made or guaranteed under this subchapter where any part of the rents, assets, proceeds, income, or other funds derived from such property are used for any purpose other than to meet actual, reasonable, and necessary expenses of the property, or for any other purpose not authorized by this subchapter or the regulations adopted pursuant to this subchapter, shall be subject to a fine of not more than $25,000 per [violation](/usc/42/2000e–16a.md?p=c). The sanctions provided in this paragraph may be imposed in addition to any other civil sanctions or civil monetary penalties authorized by law.
- (b) **Civil monetary penalties—**
  - (1) **In general—** The [Secretary](/usc/42/242q–4.md?p=2) may, after notice and opportunity for a hearing, impose a civil monetary penalty in accordance with this subsection against any individual or entity, including its [owners](/usc/42/13641.md?p=4), officers, [directors](/usc/42/11851.md?p=5), general partners, limited partners, or employees, who knowingly and materially violate, or participate in the [violation](/usc/42/2000e–16a.md?p=c) of, the provisions of this subchapter, the regulations issued by the [Secretary](/usc/42/242q–4.md?p=2) pursuant to this subchapter, or agreements made in accordance with this subchapter, by—
    - (A) submitting information to the [Secretary](/usc/42/242q–4.md?p=2) that is false;
    - (B) providing the [Secretary](/usc/42/242q–4.md?p=2) with false certifications;
    - (C) failing to submit information requested by the [Secretary](/usc/42/242q–4.md?p=2) in a timely manner;
    - (D) failing to maintain the property subject to loans made or guaranteed under this subchapter in good repair and condition, as determined by the [Secretary](/usc/42/242q–4.md?p=2);
    - (E) failing to provide management for a [project](/usc/42/13641.md?p=2) which received a loan made or guaranteed under this subchapter that is acceptable to the [Secretary](/usc/42/242q–4.md?p=2); or
    - (F) failing to comply with the provisions of applicable civil rights statutes and regulations.
  - (2) **Conditions for renewal or extension—** The [Secretary](/usc/42/242q–4.md?p=2) may require that expiring loan or assistance agreements entered into under this subchapter shall not be renewed or extended unless the [owner](/usc/42/13641.md?p=4) executes an agreement to comply with additional conditions prescribed by the [Secretary](/usc/42/242q–4.md?p=2), or executes a new loan or assistance agreement in the form prescribed by the [Secretary](/usc/42/242q–4.md?p=2).
  - (3) **Amount—**
    - (A) **In general—** The amount of a civil monetary penalty imposed under this subsection shall not exceed the greater of—
      - (i) twice the damages the Department of Agriculture, the guaranteed lender, or the [project](/usc/42/13641.md?p=2) that is secured for a loan under this section suffered or would have suffered as a result of the [violation](/usc/42/2000e–16a.md?p=c); or
      - (ii) $50,000 per [violation](/usc/42/2000e–16a.md?p=c).
    - (B) **Determination—** In determining the amount of a civil monetary penalty under this subsection, the [Secretary](/usc/42/242q–4.md?p=2) shall take into consideration—
      - (i) the gravity of the offense;
      - (ii) any history of prior offenses by the violator (including offenses occurring prior to the enactment of this section);
      - (iii) the ability of the violator to pay the penalty;
      - (iv) any injury to tenants;
      - (v) any injury to the public;
      - (vi) any benefits received by the violator as a result of the [violation](/usc/42/2000e–16a.md?p=c);
      - (vii) deterrence of future [violations](/usc/42/2000e–16a.md?p=c); and
      - (viii) such other factors as the [Secretary](/usc/42/242q–4.md?p=2) may establish by regulation.
  - (4) **Payment of penalties—** No payment of a penalty assessed under this section may be made from funds provided under this subchapter or from funds of a [project](/usc/42/13641.md?p=2) which serve as security for a loan made or guaranteed under this subchapter.
  - (5) **Remedies for noncompliance—**
    - (A) **Judicial intervention—** If a person or entity fails to comply with a final determination by the [Secretary](/usc/42/242q–4.md?p=2) imposing a civil monetary penalty under this subsection, the [Secretary](/usc/42/242q–4.md?p=2) may request the Attorney General of the United States to bring an action in an appropriate United States district court to obtain a monetary judgment against such individual or entity and such other relief as may be available. The monetary judgment may, in the court’s discretion, include the attorney’s fees and other expenses incurred by the United States in connection with the action.
    - (B) **Reviewability of determination—** In an action under this paragraph, the validity and appropriateness of a determination by the [Secretary](/usc/42/242q–4.md?p=2) imposing the penalty shall not be subject to review.

## Source credit

(July 15, 1949, ch. 338, title V, § 543, as added Pub. L. 106–569, title VII, § 708(a), Dec. 27, 2000, 114 Stat. 3016.)

## Notes

### Editorial Notes

### References in Text

Enactment of this section, referred to in subsec. (b)(3)(B)(ii), means enactment of Pub. L. 106–569, which enacted this section and was approved Dec. 27, 2000.