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§ 582.340 24 CFR Ch. V (4-1 -05 Edition) <br /> (ii) The person moved into the prop- (Cost Principles Applicable to Grants, <br /> erty after the submission of the appli- Contracts and Other Agreements with <br /> cation and, before signing a lease and Nonprofit Institutions) apply to the ac- <br /> commencing occupancy, was provided ceptance and use of assistance by pri- <br /> written notice of the project, its pos- vate nonprofit - organizations, except <br /> sible impact on the person (e.g. , the where inconsistent with provisions of <br /> person may be displaced, temporarily the McKinney Act, other Federal stat- <br /> relocated, or suffer a rent increase) and utes, or this part. <br /> the fact that the person would not (2) The financial management sys- <br /> qualify as a "displaced person" (or for tems used by recipients under this pro- <br /> any assistance provided under this sec- gram must provide for audits in ac- <br /> tion) , if the project is approved; cordance with the provisions of 24 CFR <br /> (iii) The person is ineligible under 49 part 44 . Private nonprofit organiza- <br /> CFR 24.2 (g) (2) ; or tions who are subrecipients are subject <br /> (iv) HUD determines that the person to the audit requirements of 24 CFR <br /> was not displaced as a direct result of part 45. HUD may perform or require <br /> acquisition, rehabilitation, or demon- <br /> tion for the project. additional audits as it finds necessary <br /> (3) The recipient may request, at any or appropriate. <br /> time, HUD's determination of whether (b) Conflict of interest (1) In addition <br /> a displacement is or would be covered to the conflict of interest requirements <br /> under this section. in 24 CFR part 85, no person who is an <br /> (g) Definition of initiation of negotia- employee, agent, consultant, officer, or <br /> tions. For purposes of determining the elected or appointed official of the re- <br /> formula for computing the replacement cipient and who exercises or has exer- <br /> housing assistance to be provided to a cised any functions or responsibilities <br /> residential tenant displaced as a direct with respect to assisted activities, or <br /> result of privately undertaken rehabili- who is in a position to participate in a <br /> tation, demolition, or acquisition of decisionmaking process or gain inside <br /> the real property, the term "initiation information with regard to such activi- <br /> of negotiations" means the execution ties, may obtain a personal or financial <br /> of the agreement between the recipient interest or benefit from the activity, or <br /> and HUD, or selection of the project have an interest in any contract, sub- <br /> site, if later. contract, or agreement with respect <br /> thereto, or the proceeds thereunder, ei- <br /> § 582.340 Other Federal requirements. ther for himself or herself or for those <br /> In addition to the Federal require- with whom he or she has family or <br /> ments set forth in 24 CFR part 5, the business ties , during his or her tenure <br /> following requirements apply to this or for one year thereafter. Participa- <br /> program: I tion by homeless individuals who also <br /> (a) OMB Circulars. (1) The policies, are participants under the program in <br /> guidelines, and requirements of OMB policy or decisionmaking under § 582.300 <br /> Circular No. A-87 (Cost Principles Ap- of this part does not constitute a con- <br /> plicable to Grants, Contracts and Other flict of interest. - <br /> Agreements with State and Local Gov- (2) Upon the written request of the <br /> ernments) and 24 CFR part 85 apply to recipient. HUD may grant an exception <br /> the acceptance and use of assistance to the provisions of paragraph (b) (1) of <br /> under the program by governmental this section on a case-by-case basis <br /> entities, and OMB Circular Nos. A-110 when it determine that the exception <br /> (Grants and Cooperative Agreements will serve to further the purposes of <br /> with Institutions of Higher Education, the program and the effective and effi- <br /> Hospitals, and Other Nonprofit Organi- cient administration of the recipient's <br /> zations) and 24 CFR part 84 and A-122 project. An exception may be consid- <br /> ered only after the recipient has pro- <br /> . I Copies of OMB Circulars may be obtained vided the following: <br /> from E.O.P. Publications, room 2200, New Ex- '(i) For States, units of general local <br /> ecutive Office Building, Washington, DC <br /> 20503, telephone (202) 395-7332. (This is not a governments, PHAs and IHAs, a disclo- <br /> toll-free number.) There is a limit of two free sure of the nature of the conflict, ac- <br /> copies. companied by an assurance that there <br /> 246 <br />