; or (B) by the Performance-Based Contract Administrator based on any other observation made by the Administrator during the normal course of business, the Administrator shall refer the structure or manager to the Secretary for remediation. (4) Penalty for failure to uphold standards (A) In general The Secretary may impose a penalty on any owner of a structure covered under a housing assistance payment contract if the Secretary finds that the structure or manager of the structure— (i) did not satisfactorily meet the requirements under paragraph (1); or (ii) is repeatedly referred to the Secretary for remediation by a Performance-Based Contract Administrator through the process established under paragraph (3). (B) Amount A penalty imposed under subparagraph (A) shall be in an amount equal to not less than 1 percent of the annual budget authority the owner is allocated under a housing assistance payment contract. (C) Use of amounts Any amounts collected under this paragraph shall be used solely for the purpose of supporting safe and sanitary conditions at applicable structures or for tenant relocation, as designated by the Secretary, with priority given to the tenants of the structure that led to the penalty. (5) Applicability This subsection shall not apply to any property assisted under subsection (o). .