CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY PROJECTS.

SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY PROJECTS. (a) Civil Money Penalties Against Multifamily Mortgagors.—Section 537 of the National Housing Act (12 U.S.C. 1735f–15) is amended— * * * * * * * (b) [42 U.S.C. 1437f–15 note] Implementation.— (1) Public comment.—The Secretary shall implement the amendments made by this section by regulation issued after notice and opportunity for public comment. The notice shall seek comments primarily as to the definitions of the terms “ownership interest in” and “effective control”, as those terms are used in the definition of the terms “agent employed to manage the property that has an identity of interest” and “identity of interest agent”. (2) Timing.—A proposed rule implementing the amendments made by this section shall be published not later than 1 year after the date of enactment of this Act. (c) [42 U.S.C. 1437f–15 note] Applicability of Amendments.—The amendments made by subsection (a) shall apply only with respect to— (1) violations that occur on or after the effective date of the 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 that date.