24 C.F.R. § 14.125
§ 14.125 Standards for awards. (24 CFR Part 14)
Operative Text
(a) A prevailing applicant may receive an award for fees and expenses incurred in connection with a proceeding, or in a significant and discrete substantive portion of the proceeding, unless the position of the agency over which the applicant has prevailed was substantially justified. The position of the agency includes, in addition to the position taken by the agency in the adversary adjudication, the action or failure to act by the agency upon which the adversary adjudication is based. The burden of proof that an award should not be made to an ineligible prevailing applicant because the agency's position was substantially justified is on the agency counsel, who may avoid an award by showing that its position was reasonable in law and fact. (b) An award will be reduced or denied if the applicant has unduly or unreasonably protracted the proceeding, if the applicant has falsified the application (including documentation) or net worth exhibit or if special circumstances make the award sought unjust.
Under 24 CFR Part 14 § 14.125, a party who prevails against a federal agency in an adversary adjudication may be eligible to recover attorneys' fees and other expenses—unless the agency can demonstrate that its position was 'substantially justified,' meaning reasonable in both law and fact. The burden of making that showing falls on the agency, not the prevailing party. However, an award can be reduced or denied entirely if the prevailing party unreasonably delayed the proceeding, submitted falsified application materials, or if other special circumstances make the award inequitable.
Plain English — not legal advice.
For housing-related adversary adjudications involving HUD or similar federal agencies, § 14.125 means that a prevailing property owner or manager may seek recovery of legal fees and costs from the agency. Compliant operators generally document their participation in proceedings accurately and avoid conduct that could be characterized as unreasonably prolonging the process, since either could jeopardize a fee award. Maintaining honest and complete records throughout any adjudication is consistent with the standards this provision establishes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 14.125, tenants or applicants who prevail in a federal adversary adjudication may have a right to seek reimbursement of fees and expenses from the agency, with the agency bearing the burden of proving its position was substantially justified. Tenants should be aware that falsifying any part of a fee application or unnecessarily dragging out proceedings can result in a reduced or denied award. Tenant-rights organizations and legal aid offices can help explain how this provision interacts with a particular type of federal proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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