[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: 24CFR585.503]

[Page 276-277]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 585_YOUTHBUILD PROGRAM--Table of Contents
 
          Subpart F_Applicability of Other Federal Requirements
 
Sec. 585.503  Conflict of interest.

    (a)(1) In addition to the conflict of interest requirements in 24 
CFR parts 84 and 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 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.
    (2) Exception. HUD may grant an exception to the exclusion in 
paragraph (a)(1) of this section on a case-by-case basis when it 
determines that such an exception will serve to further the purposes of 
the Youthbuild program. An exception may be considered only after the 
applicant or recipient has provided

[[Page 277]]

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:
    (i) Whether the exception would provide a significant cost benefit 
or an essential degree of expertise to the Youthbuild program that would 
otherwise not be available;
    (ii) Whether an opportunity was provided for open competitive 
bidding or negotiation;
    (iii) 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;
    (iv) Whether the affected person has withdrawn from his or her 
functions or responsibilities, or the decision-making process, with 
respect to the specific activity in question;
    (v) Whether the interest or benefit was present before the affected 
person was in a position as described in paragraph (a)(2) of this 
section;
    (vi) 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
    (vii) Any other relevant considerations.
    (b) [Reserved]