1. (1) OHCS reserves the right to identify deficiencies in the performance of any subgrantee or their subrecipients discovered during prorgram operations or compliance monitoring activities and take remedial action upon such subgrantees, including, but not limited to, modifying funding amount, reducing or withholding payment, suspending or recouping payment s or both, requiring a corrective action or additional activities necessary to satisfy its obligations or meet performance standards, initiation of an action or proceeding for damages, specific performance, or declaratory or injunctive relief, exercise of its right of recovery of overpayments, declaring subgrantee ineligible for the receipt of future awards from OHCS, criminal action for misstatements or fraud, misfeasance, claims under the Oregon False Claims Act, or other culpable behavior, investigation, audit, and/or sanction by other governmental bodies, and terminating its funding agreement with a subgrantee and requiring repayment of ERA funding.

2. (2) To remedy any identified deficiencies, OHCS:

   1. (a) May issue a deficiency notice notifying a subgrantee of deficiencies and provide documentation for the basis of such determination and the specific deficiency or deficiencies that must be corrected;
   2. (b) May require the subgrantee to correct any deficiencies in a manner and time frame satisfactory to OHCS;
   3. (c) May offer training and technical assistance related to such deficiencies to the subgrantee; and
   4. (d) May, at its discretion, offer the subgrantee assistance in the development of a corrective action plan. If a corrective action plan is allowed, OHCS must review the plan and issue a decision of approval or disapproval to the subgrantee.
3. (3) OHCS may provide adequate notice to a subgrantee of remedial action that will terminate or reduce a subgrantee’s eligibility for ERA funding. OHCS may provide the subgrantee an initial opportunity to appeal to the director of the Housing Stabilization Division of OHCS, whose decision may be deferred to the director of OHCS.
4. (4) Issuance of a deficiency notice will not constitute a waiver of other remedies available to OHCS or preclude OHCS from exercising such other remedies available to it under the ERA requirements, at law or otherwise.

Statutory/Other Authority

ORS 458.375

Statutes/Other Implemented

ORS 458.610, 458.620 & 458.650

History

OHCS 19-2025, amend filed 04/02/2025, effective 04/02/2025
OHCS 36-2019, amend filed 11/26/2019, effective 11/26/2019
OHCS 19-2019, minor correction filed 07/03/2019, effective 07/03/2019
OHCS 12-2017, adopt filed 11/07/2017, effective 11/07/2017
OHCS 4-2017(Temp), f. & cert. ef. 6-20-17 thru 12-16-17