[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR511.12]

[Page 16-17]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 511_RENTAL REHABILITATON GRANT PROGRAM--Table of Contents
 
                     Subpart B_Program Requirements
 
Sec. 511.12  Conflicts of interest.

    (a) No person who is an employee, agent, consultant, officer, or 
elected or appointed official of the grantee or State recipient (or of 
any public agency that performs administrative functions in the RRP) 
that receives rental rehabilitation grant amounts and who exercises or 
has exercised any functions or responsibilities with respect to assisted 
rehabilitation activities, or who is in a position to participate in a 
decision-making process or gain inside

[[Page 17]]

information with regard to such activities, may obtain a personal or 
financial interest or benefit from the activity, or have an interest in 
any contract, subcontract or agreement with respect thereto, or the 
proceeds thereunder, either for themselves or those with whom they have 
family or business ties, during their tenure or for one year thereafter.
    (b) The appropriate HUD Field Office may grant an exception to the 
exclusion in paragraph (a) of the section on a case-by-case basis when 
it determines that such an exception will serve to further the purposes 
of the Rental Rehabilitation Program and the effective and efficient 
administration of the local rental rehabilitation program or the 
project. An exception may be considered only after the grantee or State 
recipient has provided a disclosure of the nature of the conflict, 
accompanied by an assurance that there has been public disclosure of the 
conflict and a description of how the public disclosure was made and an 
opinion of the grantee's or State recipient's attorney that the interest 
for which the exception is sought would not violate State or local laws. 
In determining whether to grant a requested exception, HUD shall 
consider the cumulative effect of the following factors, where 
applicable:
    (1) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the local rental rehabilitation 
program or the project that would otherwise not be available;
    (2) Whether an opportunity was provided for open competitive bidding 
or negotiation;
    (3) Whether the person affected is a member of a group or class 
intended to be the beneficiaries of the rehabilitation activity, and the 
exception will permit such person to receive generally the same 
interests or benefits as are being made available or provided to the 
group or class;
    (4) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decisionmaking process, with 
respect to the specific rehabilitation activity in question;
    (5) Whether the interest or benefit was present before the affected 
person was in a position as described in this paragraph;
    (6) Whether undue hardship will result either to the grantee, State 
recipient or the person affected when weighed against the public 
interest served by avoiding the prohibited conflict; and
    (7) Any other relevant considerations.