[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

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

[CITE: 24CFR891.130]



[Page 182]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 891_SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES

--Table of Contents

 

                 Subpart A_General Program Requirements

 

Sec.  891.130  Prohibited relationships.



    This section shall apply to capital advances under the Section 202 

Program and the Section 811 Program, as well as to loans financed under 

Sec. Sec.  891.655 through 891.790.

    (a) Conflicts of interest. (1) Officers and Board members of either 

the Sponsor or the Owner (or Borrower, as applicable) may not have any 

financial interest in any contract with the Owner or in any firm which 

has a contract with the Owner. This restriction applies so long as the 

individual is serving on the Board and for a period of three years 

following resignation or final closing, whichever occurs later.

    (2) The following contracts between the Owner (or Borrower, as 

applicable) and the Sponsor or the Sponsor's nonprofit affiliate will 

not constitute a conflict of interest if no more than two persons 

salaried by the Sponsor or management affiliate serve as nonvoting 

directors on the Owner's board of directors:

    (i) Management contracts (including associated management fees);

    (ii) Supportive services contracts (including service fees) under 

the Supportive Housing for the Elderly Program; and

    (iii) Developer (consultant) contracts.

    (b) Identity of interest. An identity of interest between the 

Sponsor or Owner (or Borrower, as applicable) and any development team 

member or between development team members is prohibited until two years 

after final closing.

    (c) Mixed-finance projects. Section 891.832 of this part applies to 

mixed-finance projects for the elderly and for persons with 

disabilities.



[61 FR 11956, Mar. 22, 1996, as amended at 70 FR 54209, Sept. 13, 2005]