HUD HCV Guidebook § 2.1

The PHA must6 not approve an owner’s participation in the program if:
    The PHA is informed (by HUD or otherwise) that the owner is debarred, suspended, or subject
      to a limited denial of participation under 24 C.F.R. part 24;
    HUD informs the PHA that the federal government has instituted an administrative or judicial
      action against the owner for a violation of the Fair Housing Act or other federal equal
      opportunity requirements, including, but not limited to, Title VI of the Civil Rights Act, Section
      504 of the Rehabilitation Act, or the Americans with Disabilities Act, and such action is
      pending;
    HUD informs the PHA that a court or administrative agency has determined that the owner
      violated the Fair Housing Act or other federal equal opportunity requirements, including, but
      not limited to, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act, or the
      Americans with Disabilities Act