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The Rural Housing Service (RHS) published a proposed rule (68 FR 32872) on June 2, 2003, to streamline and consolidate 14 regulations into 7 CFR 3560, which sets forth requirements, policies, and procedures for originating, processing, and servicing Rural Development's Multi-Family Housing (MFH) direct loans and grants. Title V of the Housing Act of 1949 authorizes the programs covered by this part. An interim rule (69 FR 69032-69176) was published November 28, 2004, to implement those changes, with an effective date of February 24, 2005. As part of the implementation of the interim rule, Civil monetary penalties (CMP) were included as an enforcement provision in section 3560.641(b). RHS proposes to amend its regulations to create a new section for imposing civil monetary penalties under the authority of 42 U.S.C. 1490s (section 543 of the Housing Act of 1949, as amended (Act)) (Housing Act CMP). RHS also proposes to adopt the USDA civil monetary penalty provisions for the Program Fraud Civil Remedies Act of 1986 (PFCRA) in a revision to an existing section (PFCRA CMP). The new section will include an amended version of the existing Housing Act CMP provision together with additional language providing procedural guidance.