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:
- Loan Officers
- Builders and Developers
- Real Estate Brokers or Agents
- Management Agents
- Appraisers and Inspectors
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
For a more detailed explanation of debarment actions, see: Title 2, Code of Federal Regulations (CFR), Parts 180 and 2424.
For general information on debarments, other exclusionary actions taken by the Federal Government and to find a listing of individuals and entities debarred by HUD, please visit the System for Award Management website at http://sam.gov/