[Code of Federal Regulations]

[Title 24, Volume 3]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR574.625]



[Page 213-214]

 

                 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 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



[[Page 214]]



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.