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2. Federal procurement requirements do not apply to the homeowners <br /> receiving rehabilitation loans made by the Agency or to the contractors <br /> hired by those homeowners. <br /> K. Conflict of Interest <br /> 1. Conflict of Interest in Procurement <br /> a. Applicability <br /> In the procurement of supplies, equipment, construction, and services <br /> by the Agency, the conflict of interest provisions in 2 CFR § 200.318 <br /> shall apply. In all cases not governed by 2 CFR § 200.318, the <br /> provisions of 24 CFR § 92.356 and this section shall apply in addition <br /> to the provisions contained in the Basic Terms and Conditions <br /> agreement. <br /> b. Conflicts Prohibited <br /> No persons described in paragraph (c) of this section who exercise or <br /> who have exercised any functions or responsibilities with respect to <br /> activities assisted with HOME funds or who are in a position to <br /> participate in a decision making process or gain inside information with <br /> regard to these activities, may obtain a financial interest or financial <br /> benefit from a HOME-assisted activity, or have a financial interest in <br /> any contract, subcontract or agreement with respect thereto, or the <br /> proceeds thereunder, either for themselves or those with whom they <br /> have family or business ties, during their tenure or for one (1) year <br /> after. <br /> c. Persons Covered <br /> The conflict of interest provisions of paragraph (b) of this section apply <br /> to any person who is an employee, agent, consultant, officer, or <br /> elected official or appointed official of the Agency. <br /> d. Exceptions: Threshold Requirements <br /> Upon the written request of the County, HUD may grant an exception <br /> to the provisions of paragraph (b) of this section on a case-by-case <br /> basis when it determines that such an exception will serve to further <br /> the purposes of the HOME Program and the effective and efficient <br /> administration of the County's HOME activities. The County may <br /> submit to HUD for its consideration a request for an exception only <br /> after the Agency has provided to the County the following: <br /> Exhibit A-2 <br /> HCS-16-42-1601-198(2) <br /> City of Everett <br /> Page 8 of 24 <br />