SECTION 330:36-6-3. Corrective and remedial actions

(a)   Upon a determination by OHFA staff that a violation has occurred during the Application stages or prior to the filing of the Regulatory Agreement, OHFA may take any one or more of the following actions when the cited violations are not corrected in a timely manner:

(1)   Condition Regulatory Agreements;

(2)   Withhold Allocations of tax Credits;

(3)   Reduce the total amount of the tax Credit award;

(4)   Require the return of unused tax Credits;

(5)   Deny future program Applications and participation for a specified period of time as determined by OHFA;

(6)   Indefinitely suspend from program participation;

(7)   File an action for specific performance; and/or

(8)   Notify the IRS.

(b)   Additionally, OHFA shall have the right, upon discovery of facts or statements indicating possible program violations by an Applicant or Owner in regard to a Development, or a proposed Development or a pending Application, or a pending TCA, to request and obtain information regarding:

(1)   The administrative, planning, budgeting, management and evaluation functions, actions being taken to correct or remove the cause of the program violation(s);

(2)   Any activities by an Applicant and/or Owner, or by an Affiliate of either of them that are, or might be in violation or breach of the Commitments made in the Application or that are, or might be, in violation of applicable laws, these Rules, the AP, and/or the applicable Carryover Agreement and/or the applicable Regulatory Agreement;

(3)   The ability of the Applicant and/or Owner to fulfill the Commitments made to OHFA in the Application and/or the applicable Carryover Agreement and/or the applicable Regulatory Agreement, in a timely manner; and

(4)   Progress schedules for completing and/or performing the Commitments made to OHFA in the Application and/or the applicable Carryover Agreement and/or the Regulatory Agreement in a timely manner.

(c)   Prior to OHFA taking any corrective and/or remedial actions, OHFA, may, in its sole discretion, issue a notice of a show cause hearing. The Applicant and/or Owner shall have thirty (30) business days to appear and show cause as to why corrective and/or remedial actions should not be taken. This language shall not be construed as a limitation on the compliance monitoring and reporting requirements of the Code and these Chapter 36 Rules.

[Source: Added at 17 Ok Reg 1239, eff 10-1-00; Amended at 18 Ok Reg 1003, eff 3-14-01 (emergency); Amended at 18 Ok Reg 3055, eff 7-12-01; Amended at 21 Ok Reg 2280, eff 1-2-05; Amended at 22 Ok Reg 2579, eff 1-2-06; Amended at 23 Ok Reg 2960, eff 1-2-07; Amended at 26 Ok Reg 303, eff 11-20-08 (emergency); Amended at 26 Ok Reg 1208, eff 7-1-09; Amended at 28 Ok Reg 1658, eff 1-1-12; Amended at 34 Ok Reg 1378, eff 1-1-18]