PROGRAM ENFORCEMENT AND PENALTIES FOR NONCOMPLIANCE.

SEC. 223. [42 U.S.C. 12753] PROGRAM ENFORCEMENT AND PENALTIES FOR NONCOMPLIANCE. If the Secretary finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply substantially with any provision of this subtitle, including any provision applicable throughout the period required by section 215(a)(1)(E) and applicable regulations, and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall reduce the line of credit in the participating jurisdiction's HOME Investment Trust Fund by the amount of any expenditures that were not in accordance with the requirements of this title, and the Secretary may— (1) prevent withdrawals from the participating jurisdiction's HOME Investment Trust Fund for activities affected by such failure to comply; (2) restrict the participating jurisdiction's activities under this title to activities that conform to one or more model programs made available under section 213; (3) remove the participating jurisdiction from participation in allocations or reallocations of funds made available under this subtitle; or (4) reduce payments to the participating jurisdiction under this subtitle by an amount equal to the amount of such payments that were not expended by the participating jurisdiction in accordance with this title.