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The terms will not require prohibitive payments for the homeowners that would force the recipient to sell the property (except in cases of fraud), and will be over a period of time consistent with the recipient's ability to pay. However, the City will not pursue the debt if notification of the right to collect the debt has not been communicated to the recipient within ten (10) years of the City's right to collect the debt first accrued, unless facts material to the City's right to collect were not known, 31 U.S.C. 901.4. 31 U.S.C. 901.8(g) allows the City to decide not to charge interest on the repayment agreement; if it can be shown that interest is "against equity and good conscience." The recipient will pay a set fee each payment period equaling the repayment amount, plus the processing costs of collection, 31 U.S.C. 901.9(c). BCC approval of a repayment schedule will take into consideration the best interests of the recipient, the BCC, the State of Colorado, and the Federal Government. A lien will be placed on the property for the duration of the payment schedule, 31 U.S.C. 901.8(c). The City will retain copies of all correspondence and a record of all conversations between the City and a recipient regarding ineligible assistance received by a recipient. If a recipient refuses to enter into a repayment schedule, the City will initiate enforcement actions such as civil or criminal penalties. 31 U.S.C. 3711(e) states that HUD, (the City in this case), must report the recipient to the Consumer Credit Reporting Agencies if the recipient goes past due on the payment plan or if a settlement is not reached. Requirements for Collecting Ineligible Assistance Obtained by Possible Fraud: NOTE: 24 CFR 28.10 (d) states that no proof of specific intent to defraud is required to establish liability under this program. If the BCC paid too much assistance on the recipient's behalf because of discrepancies in information furnished by the recipient, and if the City has sufficient evidence that the recipient intentionally misrepresented its circumstances, the City must pursue debt collection. In cases where the City has compelling evidence that the recipient knowingly omitted or falsified information in order to receive a Housing Assistance Grant, Buyout or Acquisition Assistance, Rental Assistance, or Infrastructure Grant, the City will seek repayment of all ineligible assistance received by the recipient by turning the case directly over to the HUD Office of Inspector General (OIG) and local law enforcement officials. General Administrative Procedures The City may choose to handle collections or may decide to hire a private collection agency to handle collections for this program (31 U.S.C. 901.5) as long as the following conditions are met in the contract with the collection agency: 1. The collection agency is a City -approved collector who can transfer funds to the City; 2. The City retains the right to resolve disputes, to compromise debts (negotiate settlement amounts less than the full amount), suspend or terminate collection, and refer debt for litigation; 27 L \FRIEDLAN\My Documents L\CDBO\2016 CDBO-DR ICA Lousville_FINAL docx 3/15/2016