2 CFR § 801.1105 - Cause for a limited denial of participation.
---
identifier: "/us/cfr/t2/s801.1105"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "2 CFR § 801.1105 - Cause for a limited denial of participation."
title_number: 2
title_name: "Federal Financial Assistance"
section_number: "801.1105"
section_name: "Cause for a limited denial of participation."
chapter_name: "DEPARTMENT OF VETERANS AFFAIRS"
part_number: "801"
part_name: "NONPROCUREMENT DEBARMENT AND SUSPENSION"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235; 38 U.S.C. 501(a) and 3703(c)."
regulatory_source: "72 FR 30240, May 31, 2007, unless otherwise noted."
cfr_part: "801"
---
# 801.1105 Cause for a limited denial of participation.
(a) *Causes.* A limited denial of participation shall be based upon adequate evidence of any of the following causes:
(1) Irregularities in a participant's or contractor's performance in the VA loan guaranty program;
(2) Denial of participation in programs administered by the Department of Housing and Urban Development or the Department of Agriculture, Rural Housing Service;
(3) Failure to satisfy contractual obligations or to proceed in accordance with contract specifications;
(4) Failure to proceed in accordance with VA requirements or to comply with VA regulations;
(5) Construction deficiencies deemed by VA to be the participant's responsibility;
(6) Falsely certifying in connection with any VA program, whether or not the certification was made directly to VA;
(7) Commission of an offense or other cause listed in § 180.800;
(8) Violation of any law, regulation, or procedure relating to the application for guaranty, or to the performance of the obligations incurred pursuant to a commitment to guaranty;
(9) Making or procuring to be made any false statement for the purpose of influencing in any way an action of the Department.
(10) Imposition of a limited denial of participation by any other VA field facility.
(b) *Indictment.* A criminal indictment or information shall constitute adequate evidence for the purpose of limited denial of participation actions.
(c) *Limited denial of participation.* Imposition of a limited denial of participation by a VA field facility shall, at the discretion of any other VA field facility, constitute adequate evidence for a concurrent limited denial of participation. Where such a concurrent limited denial of participation is imposed, participation may be restricted on the same basis without the need for an additional conference or further hearing.