2 CFR §801.1105

1. (a)Causes. A limited denial of participation shall be based upon adequate evidence of any of the following causes:
   1. (1)Irregularities in a participant's or contractor's performance in the VA loan guaranty program;
   2. (2)Denial of participation in programs administered by the Department of Housing and Urban Development or the Department of Agriculture, Rural Housing Service;
   3. (3)Failure to satisfy contractual obligations or to proceed in accordance with contract specifications;
   4. (4)Failure to proceed in accordance with VA requirements or to comply with VA regulations;
   5. (5)Construction deficiencies deemed by VA to be the participant's responsibility;
   6. (6)Falsely certifying in connection with any VA program, whether or not the certification was made directly to VA;
   7. (7)Commission of an offense or other cause listed in § 180.800;
   8. (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. (9)Making or procuring to be made any false statement for the purpose of influencing in any way an action of the Department.
   10. (10)Imposition of a limited denial of participation by any other VA field facility.
2. (b)Indictment. A criminal indictment or information shall constitute adequate evidence for the purpose of limited denial of participation actions.
3. (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.