[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: 24CFR582.340]



[Page 248-250]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 

        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 582_SHELTER PLUS CARE--Table of Contents

 

                     Subpart D_Program Requirements

 

Sec.  582.340  Other Federal requirements.



    In addition to the Federal requirements set forth in 24 CFR part 5, 

the following requirements apply to this program:



[[Page 249]]



    (a) OMB Circulars.\1\ (1) 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 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 24 CFR part 84 and A-

122 (Cost Principles Applicable to Grants, Contracts and Other 

Agreements with Nonprofit Institutions) apply to the acceptance and use 

of assistance by private nonprofit organizations, except where 

inconsistent with provisions of the McKinney Act, other Federal 

statutes, or this part.

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    \1\ 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.

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    (2) The financial management systems used by recipients under this 

program must provide for audits in accordance with the provisions of 24 

CFR part 44. Private nonprofit organizations who are subrecipients are 

subject to the audit requirements of 24 CFR part 45. HUD may perform or 

require additional audits as it finds necessary or appropriate.

    (b) Conflict 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.  582.300 of this part 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 (b)(1) of this section on a 

case-by-case basis when it determine 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, units of general local governments, PHAs and IHAs, 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 (b)(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 (b)(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



[[Page 250]]



    (vi) Any other relevant considerations.



[58 FR 13892, Mar. 15, 1993, as amended at 61 FR 5210, Feb. 9, 1996; 61 

FR 51171, Sept. 30, 1996; 62 FR 13539, Mar. 21, 1997]