Debarments

A debarment sanction means that an individual, organization and its affiliates are excluded from conducting business with any Federal Agency government-wide. Depending upon the outcome of an investigation or legal proceeding, a suspension may lead to debarment. Debarment is the most serious compliance sanction and is generally imposed for a three-year period. However, debarment can be imposed for a longer period of time, if the Debarring Official determines this action is necessary to protect the public interest. If a suspension precedes a debarment, then the suspension period is considered in determining the total length of time that debarment is imposed.

Who does HUD sanction?

The following are some occupations that could be sanctioned:

• Landlords
• Loan Officers
• Builders and Developers
• Real Estate Brokers or Agents
• Management Agents
• Appraisers and Inspectors
• Contractors

Causes for Debarment Debarment is imposed for criminal and/or serious HUD program violations, which could include:

• Use of False Documents to Originate FHA-Insured Mortgages
• Diversion of Project Assets
• Embezzlement, Theft, Forgery
• False Statements, False Claims
• Bribery

For a more detailed explanation of debarment actions, see: Title 2, Code of Federal Regulations (CFR), Parts 180 and 2424.