SANCTIONS FOR IMPROPER USE OF AMOUNTS.

SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS. Section 6(j) of the United States Housing Act of 1937 (42 U.S.C. 1437d(j)) is amended— (1) by redesignating paragraph (4) as paragraph (5); and (2) by inserting after paragraph (3) the following new paragraph: “(4) Sanctions for improper use of amounts.— “(A) In general.— In addition to any other actions authorized under this Act, if the Secretary finds that a public housing agency receiving assistance amounts under section 9 for public housing has failed to comply substantially with any provision of this Act relating to the public housing program, the Secretary may— “(i) terminate assistance payments under this section 9 to the agency; “(ii) withhold from the agency amounts from the total allocations for the agency pursuant to section 9; “(iii) reduce the amount of future assistance payments under section 9 to the agency by an amount equal to the amount of such payments that were not expended in accordance with this Act; “(iv) limit the availability of assistance amounts provided to the agency under section 9 to programs, projects, or activities not affected by such failure to comply; “(v) withhold from the agency amounts allocated for the agency under section 8; or “(vi) order other corrective action with respect to the agency. “(B) Termination of compliance action.— If the Secretary takes action under subparagraph (A) with respect to a public housing agency, the Secretary shall— “(i) in the case of action under subparagraph (A)(i), resume payments of assistance amounts under section 9 to the agency in the full amount of the total allocations 112 STAT. 2564under section 9 for the agency at the time that the Secretary first determines that the agency will comply with the provisions of this Act relating to the public housing program; “(ii) in the case of action under clause (ii) or (v) of subparagraph (A), make withheld amounts available as the Secretary considers appropriate to ensure that the agency complies with the provisions of this Act relating to such program; “(iii) in the case of action under subparagraph (A)(iv), release such restrictions at the time that the Secretary first determines that the agency will comply with the provisions of this Act relating to such program; or “(iv) in the case of action under subparagraph (vi), cease such action at the time that the Secretary first determines that the agency will comply with the provisions of this Act relating to such program.”.