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Conflict-of-Interest Requirements - Exceptions

Upon written request, exceptions to the HOME-specific Conflict-of-Interest provisions may be granted on a case-by-case basis. Let's take a closer look at these exception requirements.

Exceptions to the HOME Conflict-of-Interest Provisions Applying to Employees, Officials, Consultants, Agents, etc., of PJs, State Recipients or Subrecipients Receiving HOME Funds (§ 92.356(a-e)):

HUD can grant exceptions only after the PJ has:

  • Disclosed the full nature of the conflict and submitted proof that the disclosure has been made public, and
     
  • Provided a legal opinion stating that there would be no violation of state or local law if it granted the exception.

Exceptions to HOME Conflict-of-Interest Provisions Applying to Employees, Officials, Consultants, Agents, etc., of Owners/Sponsors/Developers of HOME Housing Projects (§ 92.356(f)):

PJs can grant exceptions based on the following factors, as set forth in the regulations:

  • If the person receiving the benefit belongs to the group of low-income persons intended to be the beneficiaries of assisted housing, and the exception will permit him or her to receive generally the same interests or benefits as are being made available or provided to the group as a whole;
     
  • If the person has withdrawn from his or her functions, responsibilities, or the decision-making process with respect to the specific assisted housing in question;
     
  • If the tenant protection requirements of 24 CFR 92.253 (prohibited lease terms, termination of tenancy, and tenant selection) are being observed;
     
  • If affirmative marketing requirements are being observed and followed; and
     
  • If any other factors relevant to the PJ's determination are met, including the timing of the requested exception.

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