[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: 24CFR583.330]

[Page 259-260]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 583_SUPPORTIVE HOUSING PROGRAM--Table of Contents
 
                     Subpart D_Program Requirements
 
Sec. 583.330  Applicability of other Federal requirements.

    In addition to the requirements set forth in 24 CFR part 5, use of 
assistance provided under this part must comply with the following 
Federal requirements:
    (a) Flood insurance. (1) The Flood Disaster Protection Act of 1973 
(42 U.S.C. 4001-4128) prohibits the approval of applications for 
assistance for acquisition or construction (including rehabilitation) 
for supportive housing located in an area identified by the Federal 
Emergency Management Agency (FEMA) as having special flood hazards, 
unless:
    (i) The community in which the area is situated is participating in 
the National Flood Insurance Program (see 44 CFR parts 59 through 79), 
or less than a year has passed since FEMA notification regarding such 
hazards; and
    (ii) Flood insurance is obtained as a condition of approval of the 
application.
    (2) Applicants with supportive housing located in an area identified 
by FEMA as having special flood hazards and receiving assistance for 
acquisition or construction (including rehabilitation) are responsible 
for assuring that flood insurance under the National Flood Insurance 
Program is obtained and maintained.
    (b) The Coastal Barrier Resources Act of 1982 (16 U.S.C. 3501 et 
seq.) may apply to proposals under this part, depending on the 
assistance requested.
    (c) Applicability of OMB Circulars. The policies, guidelines, and 
requirements of OMB Circular No. A-87 (Cost Principles Applicable to 
Grants, Contracts and Other Agreements with State and Local Governments) 
and 24 CFR part 85 apply to the award, acceptance, and use of assistance 
under the program by governmental entities, and OMB Circular Nos. A-110 
(Grants and Cooperative Agreements with Institutions of Higher 
Education, Hospitals, and Other Nonprofit Organizations) and A-122 (Cost 
Principles Applicable to Grants, Contracts and Other Agreements with

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Nonprofit Institutions) apply to the acceptance and use of assistance by 
private nonprofit organizations, except where inconsistent with the 
provisions of the McKinney Act, other Federal statutes, or this part. 
(Copies of OMB Circulars may be obtained from E.O.P. Publications, room 
2200, New Executive Office Building, Washington, DC 20503, telephone 
(202) 395-7332. (This is not a toll-free number.) There is a limit of 
two free copies.
    (d) Lead-based paint. The Lead-Based Paint Poisoning Prevention Act 
(42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction 
Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at part 
35, subparts A, B, J, K, and R of this title apply to activities under 
this program.
    (e) Conflicts of interest. (1) In addition to the conflict of 
interest requirements in 24 CFR part 85, no person who is an employee, 
agent, consultant, officer, or elected or appointed official of the 
recipient 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 decisionmaking process or gain inside 
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 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. Participation by homeless individuals who also 
are participants under the program in policy or decisionmaking under 
Sec. 583.300(f) does not constitute a conflict of interest.
    (2) Upon the written request of the recipient, HUD may grant an 
exception to the provisions of paragraph (e)(1) of this section on a 
case-by-case basis when it determines that the exception will serve to 
further the purposes of the program and the effective and efficient 
administration of the recipient's project. An exception may be 
considered only after the recipient has provided the following:
    (i) For States and other governmental entities, 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
    (ii) For all recipients, an opinion of the recipient's attorney that 
the interest for which the exception is sought would not violate State 
or local law.
    (3) In determining whether to grant a requested exception after the 
recipient has satisfactorily met the requirement of paragraph (e)(2) of 
this section, HUD will consider the cumulative effect of the following 
factors, where applicable:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the project which would otherwise 
not be available;
    (ii) 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;
    (iii) 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;
    (iv) Whether the interest or benefit was present before the affected 
person was in a position as described in paragraph (e)(1) of this 
section;
    (v) 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
    (vi) Any other relevant considerations.
    (f) Audit. The financial management systems used by recipients under 
this program must provide for audits in accordance with 24 CFR part 44 
or part 45, as applicable. HUD may perform or require additional audits 
as it finds necessary or appropriate.
    (g) Davis-Bacon Act. The provisions of the Davis-Bacon Act do not 
apply to this program.

[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 5211, Feb. 9, 1996; 64 
FR 50226, Sept. 15, 1999]

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