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Ofc. of Asst. Secy., Comm. Planning, Develop., HUD § 582.340 (a) OMB Circulars? (1) The policies, policy or decisionmaking under § 582.300 guidelines, and requirements of OMB of this part does not constitute a con- Circular No. A-87 (Cost Principles Ap- flict of interest. plicable to Grants, Contracts and Other (2) Upon the written request of the Agreements with State and Local Gov- recipient, HUD may grant an exception ernments) and 24 CFR part 85 apply to to the provisions of paragraph (b)(1) of the acceptance and use of assistance this section on a case-by-case basis under the program by governmental when it determine that the exception entities, and OMB Circular Nos. A-110 will serve to further the (Grants and Cooperative Agreements purposes of the program and the effective and with Institutions of Higher Education, t's Hospitals, and Other Nonprofit Organi- zations) and 24 CFR part 84 and A-122 project. An exception may be consid- (Cost Principles Applicable to Grants, ered only after the recipient has pro- Contracts and Other Agreements with vided the following: Nonprofit Institutions) apply to the ac- (i) For States, units of general local ceptance and use of assistance by pri- governments, PHAs and THAs, a disclo- vate nonprofit organizations, except sure of the nature of the conflict, ac- where inconsistent with provisions of companied by an assurance that there the McKinney Act, other Federal stat- has been public disclosure of the con- utes, or this part. flict and a description of how the pub- (2) The financial management sys- lic disclosure was made; and tems used by recipients under this pro- (ii) For all recipients, an opinion of gram must provide for audits in ac- the recipient's attorney that the inter- cordance with the provisions of 24 CFR est for which the exception is sought part 44. Private nonprofit organiza- would not violate State or local law. tions who are subrecipfents are subject (3) In determining whether to grant a to the audit requirements of 24 CFR requested exception after the recipient part 45. HUD may perform or require has satisfactorily met the requirement additional audits as it finds necessary of paragraph (b)(2) of this section, HUD or appropriate. will consider the cumulative effect of (b) Conflict of interest. (1) In addition the following factors, where applicable: to the conflict of interest requirements in 24 CFR part 85, no person who is an (i) Whether the exception would pro- employee, agent, consultant, officer, or vide a significant cost benefit or an es- elected or appointed official of the re- sential degree of expertise to the cipient and who exercises or has exer- project which would otherwise not be cised any functions or responsibilities available; with respect to assisted activities, or (ii) Whether the person affected is a who is in a position to participate in a member of a group or class of eligible decisionmaking process or gala inside persons and the exception will permit information with regard to such activi- such person to receive generally the ties, may obtain a personal or financial same interests or benefits as are being interest or benefit from the activity, or made available or provided to the have an interest in any contract, sub- group or class; contract, or agreement with respect (iii) Whether the affected person has thereto, or the proceeds thereunder, ei- withdrawn from his or her functions or ther for himself or herself or for those responsibilities, or the decisionmaking with whom he or she has family or process with respect to the specific as- business ties, during his or her tenure sisted activity in question; or for one year thereafter. Participa- (iv) Whether the interest or benefit tion by homeless individuals who also was present before the affected person are participants under the program in was in a position as described in para- graph (b)(1) of this section; s Copies of OMB Circulars may be obtained Cram E.O.P. Publications, room 2200, New Ex- (v) Whether undue hardship will re- ecutive Office Building, Washington, DC . salt either to the recipient or the per- 20503, telephone (202) 395-7332. (This is not a son affected when weighed against the toll-free number-) There is a limit of two free public interest served by avoiding the copies. prohibited conflict; and 249