2 C.F.R. § 801.1105 – Cause for a limited denial of participation.

(a) Causes. A limited denial of participation shall be based upon adequate evidence of any of the following causes:
1. (1) Irregularities in a participant's or contractor's performance in the VA loan guaranty program;
2. (2) Denial of participation in programs administered by the Department of Housing and Urban Development or the Department of Agriculture, Rural Housing Service;
3. (3) Failure to satisfy contractual obligations or to proceed in accordance with contract specifications;
4. (4) Failure to proceed in accordance with VA requirements or to comply with VA regulations;
5. (5) Construction deficiencies deemed by VA to be the participant's responsibility;
6. (6) Falsely certifying in connection with any VA program, whether or not the certification was made directly to VA;
7. (7) Commission of an offense or other cause listed in § 180.800;
8. (8) Violation of any law, regulation, or procedure relating to the application for guaranty, or to the performance of the obligations incurred pursuant to a commitment to guaranty;
9. (9) Making or procuring to be made any false statement for the purpose of influencing in any way an action of the Department.
10. (10) Imposition of a limited denial of participation by any other VA field facility.
(b) Indictment. A criminal indictment or information shall constitute adequate evidence for the purpose of limited denial of participation actions.
(c) Limited denial of participation. Imposition of a limited denial of participation by a VA field facility shall, at the discretion of any other VA field facility, constitute adequate evidence for a concurrent limited denial of participation. Where such a concurrent limited denial of participation is imposed, participation may be restricted on the same basis without the need for an additional conference or further hearing.