[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: 24CFR583.330]



[Page 263-264]

 

                 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 

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



[[Page 264]]



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]