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HomeMy WebLinkAboutConflict of Interest§570,611 A-1282 (implemented at 24 CFR part 44), as applicable, as they relate to the acceptance and use of Federal funds under this part, The applicable sections of 24 CFR parts 84 and 85 are set forth at § 570.502. (60 FR 56916, Nov. 9, 19951 5 670.611 Conflict of interest. (a) Applicability. (1) In the procure- ment of supplies, equipment, construc- tion, and services by recipients and by subrecipients, the conflict of interest provisions in 24 CFR 85.36 and 24 CFR 84.42, respectively, shall apply. (2) In all cases not .governed by 24 CFR 85.36 and 84.42, the provisions of this section shall apply. Such cases in- clude the acquisition and disposition of real property and the provision of as- sistance by the recipient or by its sub - recipients to Individuals, businesses, and other private entities under eligi- ble activities that authorize such as- sistance (e.g., rehabilitation, preserva- tion, and other Improvements of pri- vate properties or facilities pursuant to §570,202; or grants, loans, and other as- sistance to businesses, individuals, and other private entities pursuant to §570.203, 570.204, 570.455, or 570.703(1)). (b) Conflicts prohibited. The general rule is that no persons described in paragraph (c) of this section who exer- cise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decisionmaking process or gain in- side Information with regard to such activities, may obtain a financial in- terest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract, or agree- ment with respect to a CDBG-assisted activity, or with respect to the pro- ceeds of the CDBG-assisted activity, ei- ther for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter, For the UDAG pro- gram, the above restrictions shall apply to all activities that are a part of the UDAG project, and shall cover any such financial interest or benefit dur- ing, or at any time after, such person's tenure. 2 See footnote 1 at § 570.200(a)(5), 24 CER Ch. V (4-1-04 Edition) (c) Persons covered. The conflict of in- terest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or of subrecipients that are receiving funds under this part. (d) Exceptions. Upon the written re- quest of the recipient, HUD may grant an exception to the provisions of para- graph (b) of this section on a case-by- case basis when it has satisfactorily met the threshold requirements of (d)(1) of this section, taking into ac- count the cumulative effects of para- graph (d) (2) of this section. (1) Threshold requirements. HUD will consider an exception only after the re- cipient has provided the following doc- umentation: (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 (Ii) An opinion of the recipient's at- torney that the interest for which the exception is sought would not violate State or local law. (2) Factors to be considered for excep- tions. In determining whether to grant a requested exception after the recipi- ent has satisfactorily met the require- ments of paragraph (d) (1) of this sec- tion, HUD shall conclude that such an exception will serve to further the pur- poses of the Act and the effective and efficient administration of the recipi- ent's program or project, taking into account the cumulative effect of the following factors, as applicable: (i) Whether the exception would pro- vide a significant cost benefit or an es- sential degree of expertise to the pro- gram or project that would otherwise not be available; (ii) Whether an opportunity was pro- vided for open competitive bidding or negotiation; (Iii) Whether the person affected is a member of a group or class of low- or moderate -income persons intended to be the beneficiaries of the assisted ac- tivity, and the exception will permit such person to receive generally the same interests or benefits as are being 150 Ofe, of Asst. Secy., Comm. Planning, Develop., HUD 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 decisionmaking process with respect to the specific as- sisted activity in question; (v) Whether the interest or benefit was present before the affected person was in a position as described in para- graph (b) of this section; (vi) Whether undue hardship will re- sult either to the recipient or the per- son affected when weighed against the public interest served by avoiding the prohibited conflict; and (vii) Any other relevant consider- ations. [60 FR 56916, Nov, 9, 19951 § 570.612 Executive Order 12872. (a) General, Executive Order 12372, Intergovernmental Review of Federal Programs, and the Department's imple- menting regulations at 24 CFR part 52, allow each State to establish its own process for review and comment on proposed Federal financial assistance programs. (b) Applicability, Executive Order 12372 applies to the CDBG Entitlement program and the UDAG program. The Executive Order applies to all activi- ties proposed to be assisted under UDAG, but it applies to the Entitle- ment program only where a grantee proposes to use funds for the planning or construction (reconstruction or in- stallation) of water or sewer facilities. Such facilities include storm sewers as well as all sanitary sewers, but do not include water and sewer lines con- necting a structure to the lines in the public right-of-way or easement. It is the responsibility of the grantee to ini- tiate the Executive Order review proc- ess if it proposes to use its CDBG or UDAG funds for activities subject to review. §570.613 Eligibility restrictions for certain resident aliens. (a) Restriction, Certain newly legal- ized aliens, as described in 24 CFR part 49, are not eligible to apply for benefits under covered activities funded by the programs listed in paragraph (e) of this section. "Benefits" under this section means financial assistance, public serv- § 570.614 ices, jobs and access to new or rehabili- tated housing and other facilities made available under covered activities fund- ed by programs listed in paragraph (e) of this section, "Benefits" do not in- clude relocation services and payments to which displacees are entitled by law. (b) Covered activities. "Covered activi- ties" under this section means activi- ties meeting the requirements of §570.208(a) that either; (1) Have income eligibility require- ments limiting the benefits exclusively to low and moderate income persons; or (2) Are targeted geographically or otherwise to primarily benefit low and moderate income persons (excluding activities serving the public at large, such as sewers, roads, sidewalks, and parks), and that provide benefits to persons on the basis of an application, (c) Limitation on coverage. The restric- tions under this section apply only to applicants for new benefits not being received by covered resident aliens as of the effective date of this section. (d) Compliance. Compliance can be ac- complished by obtaining certification as provided in 24 CFR 49.20. (e) Programs affected. (1) The Commu- nity Development Block Grant pro- gram for small cities, administered under subpart F of part 570 of this title until closeout of the recipient's grant, (2) The Community Development Block Grant program for entitlement grants, administered under subpart D of part 570 of this title. (3) The Community Development Block Grant program for States, ad- ministered under subpart I of part 570 of this title until closeout of the unit of general Iocal government's grant by the State, (4) The Urban Development Action Grants program, administered under subpart G of part 570 of this title until closeout of the recipient's grant. 155 FR 18494, May 2, 19901 § 570,614 Architectural Barriers Act and the Americana with Disabilities Act, (a) The Architectural Barriers Act of 1968 (42 U.S,C, 4151-4157) requires cer- tain Federal and Federally funded 151