Welcome to FT, Kevin Mitchell!
As far as I can tell, it's up to the hotel to decide how to charge for no-shows. Looking at my currently booked awards, some of them specify the forfeiture amount as zero, and some show it as non-zero, but it's always clearly spelled out. If you're going to hold an entire program responsible for an incident at one hotel, you'll have a hard time finding any program that will please you.