Housing and Community Development (HCD) Practice Exam

What action can the department take regarding a licensee who fails to comply with operating regulations?

1. Only issue a public notice

2. Issue a citation with civil penalties

3. Begin a criminal investigation immediately

4. Provide additional training to ensure compliance

The correct answer is: Issue a citation with civil penalties

Issuing a citation with civil penalties is a standard action that a regulatory department can take against a licensee who fails to comply with operating regulations. This approach serves as a formal reprimand and imposes financial consequences for non-compliance, which can motivate the licensee to adhere to the regulations in the future. Civil penalties can vary in amount depending on the severity of the violation and are designed to encourage compliance by highlighting the importance of following established rules. While other options might appear relevant, they are not typically suitable for the immediate response to regulatory non-compliance. A public notice would serve to inform the public but would not address the issue directly with the licensee. Starting a criminal investigation usually involves more severe circumstances and requires evidence of criminal wrongdoing rather than a regulatory infraction. Providing additional training can be supportive but does not directly address the violation or enforce compliance effectively. The citation with civil penalties is a clear, enforceable way to handle violations of regulations in a structured manner.