What constitutes a conflict of interest under NSP?

Date Published: October 2012

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Under the CDBG regulations (24 CFR 570.611), the general rule is that no "persons covered" (below) who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted activity, or with respect to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter.  

Persons covered: The conflict of interest provisions of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or of subrecipients that are receiving funds under this part. It should be noted that typically an exception can be granted by the field office for employees of an organization who have no oversight or control of the grant, for instance an administrative assistant.      

NOTE: When Dealing with Conflict of Interest questions, it is recommended that you contact your local field office to ensure compliance with all applicable regulations. Specific facts vary greatly such that general advice has limited applicability.

Tags: NSP Program Administration - Conflict of Interest