[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: 24CFR574.625]

[Page 209-210]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 574_HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS--Table of Contents
 
                  Subpart G_Other Federal Requirements
 
Sec. 574.625  Conflict of interest.

    (a) In addition to the conflict of interest requirements in OMB 
Circular A-102 and 24 CFR 85.36(b)(3), no person who is an employee, 
agent, consultant, officer, or elected or appointed official of the 
grantee or project sponsor 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 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.
    (b) Exceptions: Threshold requirements. Upon the written request of 
the recipient, HUD may grant an exception to the provisions of paragraph 
(a) of this section when it determines that the exception will serve to 
further the purposes of the HOPWA program and the effective and 
efficient administration of the recipient's program or project. An 
exception may be considered only after the recipient has provided the 
following:
    (1) 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
    (2) An opinion of the recipient's attorney that the interest for 
which the

[[Page 210]]

exception is sought would not violate State or local law.
    (c) Factors to be considered for exceptions. In determining whether 
to grant a requested exception after the recipient has satisfactorily 
met the requirements of paragraph (b) of this section, 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 program or project that would 
otherwise not be available;
    (2) Whether the person affected is a member of a group or class of 
eligible persons 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;
    (3) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decisionmaking process with 
respect to the specific assisted activity in question;
    (4) Whether the interest or benefit was present before the affected 
person was in a position as described in paragraph (a) of this section;
    (5) Whether undue hardship will result either to the recipient or 
the person affected when weighed against the public interest served by 
avoiding the prohibited conflict; and
    (6) Any other relevant considerations.