[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: 24CFR572.415]

[Page 190-191]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 572_HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM (HOPE 3)--Table of Contents
 
                  Subpart E_Other Federal Requirements
 
Sec. 572.415  Conflict of interest.

    (a) Conflict of interest. In addition to the conflict of interest 
requirements in OMB Circular A-110 \1\ and 24 CFR part 85, no person who 
is an employee, agent, consultant, officer, or elected or appointed 
official of the recipient or cooperating entity named in the application 
and who exercises or has exercised any functions or responsibilities 
with respect to assisted activities, or who is in a position to 
participate in a decision-making process or gain inside information with 
regard to such activities, may obtain a 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

[[Page 191]]

himself or herself or for those with whom he or she has family or 
business ties, during his or her tenure or for one year thereafter, 
except that a resident of an eligible property may acquire an ownership 
interest.
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    \1\ See Sec. 572.425(b) concerning availability of OMB Circulars.
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    (b) Exception. HUD may grant an exception to the exclusion in 
paragraph (a) of this section on a case-by-case basis when it determines 
that such an exception will serve to further the purposes of the HOPE 3 
program and the effective and efficient administration of the local 
homeownership program. An exception may be considered only after the 
applicant or recipient has provided a disclosure of the nature of the 
conflict, accompanied by an assurance that there has been public 
disclosure of the conflict, a description of how the public disclosure 
was made, and an opinion of the applicant's or recipient's attorney that 
the interest for which the exception is sought would not violate State 
or local law. In determining whether to grant a requested exception, HUD 
will 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 homeownership program 
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 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 activity in question;
    (5) Whether the interest or benefit was present before the affected 
person was in a position as described in paragraph (b) of this section;
    (6) Whether undue hardship will result either to the applicant, 
recipient, or the person affected when weighed against the public 
interest served by avoiding the prohibited conflict; and
    (7) Any other relevant considerations.