Page:United States Statutes at Large Volume 111 Part 2.djvu/339

 PUBLIC LAW 105-65—OCT. 27, 1997 111 STAT. 1419 42 USC 1437Z-1 note. 42 USC 1437Z-1 note. the Secretary, the Secretary shall make all civil money penalties collected under this section available for use by the appropriate office within the Department for administrative costs related to enforcement of the requirements of the various programs administered by the Secretary. "(h) DEFINITIONS. —In this section— "(1) the term 'agent employed to manage the property that has an identity of interest' means an entity— "(A) that has msmagement responsibility for a project; "(B) in which the ownership entity, including its general partner or partners (if applicable), has an ownership interest; and "(C) over which such ownership entity exerts effective control; and "(2) the term 'knowing* means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.". (b) APPLICABILITY.—The amendments made by subsection (a) shall apply only with respect to— (1) violations that occur on or after the effective date of final regulations implementing the amendments made by this section; and (2) in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation that occurs on or after such date. (c) IMPLEMENTATION.— (1) REGULATIONS.— (A) IN GENERAL.— The Secretary shall implement the amendments made by this section by regulation issued after notice and opportunity for public comment. (B) COMMENTS SOUGHT.— The notice under subparagraph (A) shall seek comments as to the definitions of the terms "ownership interest in" and "effective control", as such terms are used in the definition of the term "agent employed to manage such property that has an identity of interest". (2) TIMING.— A proposed rule implementing the amend- Publication. ments made by this section shall be published not later than 1 year after the date of enactment of this Act. SEC. 563. EXTENSION OF DOUBLE DAMAGES REMEDY. Section 421 of the Housing and Community Development Act of 1987 (12 U.S.C. 1715z-4a) is amended— (1) in subsection (a)(1)— (A) in the first sentence, by striking "Act; or (B)" and inserting the following: "Act; (B) a regulatory agreement that applies to a multifamily project whose mortgage is insured or held by the Secretary under section 202 of the Housing Act of 1959 (including property subject to section 202 of such Act as it existed before enactment of the Cranston-Gonzalez National Affordable Housing Act of 1990); (C) a regulatory agreement or such other form of regulatory control as may be imposed by the Secretary that applies to mortgages insured or held by the Secretary under section 542 of the Housing and Community Development Act of 1992, but not reinsured under section 542

�