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Oft of Asst. Secy., Comm, Planning, Develop ., HUD § 583.405 project. An exception may be considered only (g) Davis- Bacon Act. The provisions of the after the recipient has provided the following : Davis- Bacon Act do not apply to this program . (i) For States and other governmental [58 FR 13871, Mar. 15, 1993, as amended at 61 entities, a disclosure of the nature of the FR 6211, Feb. 9, 1996; 6a FR 50226 , Sept. 15, conflict, accompanied by an assurance that 19991 there has been public disclosure of the conflict Subpart E-Administration and a description of how the public disclosure was made , and § 583.400 Grant agreement. (ii) For all recipients, an opinion of the (a) General . The duty to provide supportive recipient's attorney that the interest for which housing or supportive services in accordance the exception is sought would not violate State with the requirements of this part will be or, local law. incorporated .in a grant agreement executed by (3) In determining whether to grant a HUD and the recipient. .requested exception after the recipient has (b) Enforcement. HUD will enforce the satisfactorily met the requirement of paragraph obligations in the grant agreement through such (e)(2) of this section, HUD will consider the action as may be appropriate, including cumulative effect of the following factors, where repayment of funds that have already been applicable : disbursed to the recipient. (i) Whether the exception would provide a significanf cost benefit or an essential degree of expertise to the project which would otherwise § 583.405 Program changes. not be available; (a) HUD approval . ( 1) A recipient may not (ii) Whether the person affected is a make any significant changes to , an approved member of a group or class of eligible persons program without prior HUD approval,. Significant and the exception will permit such person to changes include, but are not limited to, , a receive generally the same interests or benefits change in the recipient, a change in the project as are being made available or provided to the site, additions or deletions in the types of group or class, activities listed in § 583 . 1001of this part (iii) Whether the affected person has approved for the program or a shift of more withdrawn from his or her functions or than 10 percent of funds from one approved responsibilities, or the decisionmaking process type of activity to another, and a change in the with respect to the specific assisted activity in category of participants to be served . question, Depending on the nature of the change, HUD (iv) Whether the interest or benefit was may require a new certification of consistency present before the affected person was in a with the consolidated plan (see § 583 . 155 )a position as described in paragraph (e)( 1) of this (2) Approval for changes is contingent section, upon the application ranking remaining high (v) Whether, undue hardship will result enough after the approved change to have been either to the recipient or the person affected competitively selected for funding in the year when weighed against the public interest served the application was selected . by avoiding the prohibited conflict, and (b) Documentation of other changes. Any (vi) Any other relevant . considerations. changes to an approved program that do not (f) Audit. The financial management require prior HUD approval must be fully systems used by recipients under this program documented in the recipient's records. must provide for audits in accordance with 24 CFR part 44 or part 45, as applicable. HUD may 1996, 138n, Mar. 15, 1993, as amended at 61 FR 51176, Sept 30, perform or require additional audits as it finds necessary or appropriate. www.hud.gov espanol.hud.gov Page 21