OAR 813-042-0100: Sanctions

(1) The Department may invoke sanctions against a Recipient that fails to comply with the provisions of its Use Agreement. The following circumstances may warrant sanctions: (a) HDGA funds have not been expended within one year of award by the Department or the Recipient; (b) Any local or private party funding agreements related to the project are not executed within six months of the award of HDGA funds; (c) There is a material breach of the Use Agreement; (d) The Use Agreement was not recorded on the property required by OAR 813-042-0050(3) or as agreed; or (e) The Department finds that significant corrective actions are necessary to protect the integrity of the project funds, and those corrective actions are not, or will not be, made within a reasonable time (the funds were used for costs not eligible under the HDGA program or the project has not served the population stated in the Use Agreement). (2) One or more of the following sanctions may be imposed by the Department: (a) Prohibit a Recipient from applying for future HDGA assistance or other Department assistance; (b) Revoke an existing HDGA award; (c) Withhold unexpended HDGA funds; (d) Require return of HDGA funds that have been disbursed to the Recipient but not expended by the Recipient; (e) Require repayment of expended HDGA funds; and (f) Invoke other remedies that may be incorporated into the Use Agreement. (3) Sanctions will not be imposed by the Department until the Recipient has been notified in writing of its deficiencies and given a reasonable time to respond and correct the deficiencies noted. The sanctions and remedies set forth in this OAR 813-042-0100 are cumulative and not exclusive and are in addition to any other rights and remedies provided by law or under the Use Agreement.