582.340 Other Federal requirements.§ 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:
(a) Uniform requirements. (1) The policies, guidelines, and requirements of 24 CFR part 85 (as revised April 1, 2013) apply to the acceptance and use of assistance under the program by governmental entities and 24 CFR part 84 (as revised April 1, 2013) 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.
(2) The financial management systems used by recipients under this program must provide for audits in accordance with the provisions of 2 CFR part 200, subpart F. Private nonprofit organizations who are subrecipients are subject to the audit requirements of 2 CFR part 200, subpart F. 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 (as revised April 1, 2013), 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 § 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
(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; 80 FR 75940, Dec. 7, 2015]