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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of General Counsel, Office of Program Enforcement, in the civil investigation of Southern Blvd I, L.P.  The owner executed a housing assistance payments contract for a 73-unit multifamily housing development named Southern Blvd I located in Bronx, NY.  The project received HUD project-based Section 8 assistance for 72 of these units.

On May 17, 2016, the Office of Program Enforcement issued a letter with a notice of intent to file legal action under the Program Fraud Civil Remedies Act of 1986 against Southern Blvd I, L.P., in connection with its participation in the project-based Section 8 Program.  The Government alleged that between 2013 and 2014, Southern Blvd I, L.P., violated HUD requirements in at least three ways:  it failed to verify assets and income, it failed to transfer overhoused tenants, and it failed to use or document the use of HUD’s EIV system.

On September 27, 2017, Southern Blvd I, L.P., entered into an agreement with the Federal Government to pay $40,000 to settle the false certification allegations.  The settlement agreement was not an admission of liability or fault on the part of any party.