Dublin Core
Title
Box 22, Folder 2, Document 16
Text Item Type Metadata
Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Reprinted from Federal Register - 31 F.R. p 8781-85
June 24,
Title 24—HOUSING AND HOUSING
CREDIT
Subtitle A—Office of the Secretary,
Department of Housing and Urban
Development
PART O—STANDARDS OF CONDUCT
Pursuant to and in accordance with
sections 201 through 209 of Title 18 of
the United States Code, Executive Order
11222 of May 8, 1965 (30 F.R. 6469), and
Title 5, Chapter I, Part 735 of the Code
of Federal Regulations, Part 0 is added
to Subtitle A of Title 24 of the Code of
Federal Regulations, reading as follows:
Subpart A—Ger=rol Provisions
Purpose.
Definitions.
Interpretation and advisory serv-
ice.
Notification to employees and
special Government employees.
Remedial action.
Interest of employee's or special
Government employee's rela-
tives.
Subpart B—Conduct and Responsibilities of
Employees
Basic principle.
Gifts, entertainment, and favors.
Outside activity.
Financial interests.
Personal real estate transactions.
Use of inside information.
Intermediaries and product rec-
ommendations.
Membership in organizations.
Use of Government property.
Indebtedness.
Gambling, betting, and lotteries.
General conduct; and conduct
prejudicial to the Government,
Subpart C—Conduct and Responsibilities of _
Special Government Employees
0.725-301 Use of Government employment.
0.735-302 Use of inside information.
0.735-303 Coercion,
0.735-304 Gifts, entertainment, and favors.
0.735-305 Applicability of other provisions.
Sec,
0.735-101
0.735-102
0.735-103
0.735-104
0.735-105
0.735-106
0.735—201
0.735-202
0.785-203
0.735-204
0.735-205
0.735-206
0.735-207
0.735-208
0.735—-209
0.735—210
0.735—-211
0.735-212
Subpart D—Miscellaneous Statutory Provisions
0.735-401 Applicable statutory provisions.
Subpart E—Statements of Employment and
Financial Interests
Submission of statements,
Supplementary statements.
Information not known by em-
ployees.
Information prohibited.
Review of statements.
Confidentiality of statements,
Effect of employee’s statements
on other requirements.
Specific provisions for special
Government employees.
Appendiz—List of Positions Subject to
Subpart E.
0.735501
0.735—502
0.735-503
0.735-504
0.735-505
0.735—506
0.735-507
0.735-508
1966
Avurnoniry: The provisions of this Part 0
issued under E.O. 11222 of May 8, 1965, 39
F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735. 10%,
Subpart A—General Provisions
§ 0.735-101 Purpose.
The maintenance of unusually high
standards of honesty, integrity, impar-
tiality, and conduct by Government em-
ployees and special Government em-
ployees is essential to assure the proper
performance of the Government business
and the maintenance of public confi-
dence. The avoidance of misconduct
and conflicts of interest on the part of
Government employees and special Gov-
ernment employees through informed
judgment is indispensable to the main-
tenance of these standards. To accord
with these concepts, this part sets forth
the Department’s regulations prescrib-
ing standards of conduct and responsi-
bilities, and governing statements of
employment and financial interests for
employees and special Government
employees.
§ 0.735-102 Definitions.
(a) “Department” means the Depart-
ment of Housing and Urban Develop-
ment.
(b) “Employee” means an officer or
employee of the Department, but does
not include a special Government em-
ployee.
(ec) “Special Government employee”
means an officer or employee of the De-
partment appointed to serve with or
without compensation, for not more than
130 consecutve days during any period of
365 days, on a full-time, part-time, or
intermittent basis, and who is retained,
designated, appointed, or employed as a
special Government employee under the
provisions of section 202 of Title 18 of
the United States Code.
(d) “Person” means an individual, a
corporation, a company, an association,
a firm, a partnership, a society, a joint
stock company, or any other organiza-
tion or institution.
(e) “Outside employment” means all
gainful employment other than the per-
formance. of official duties. It includes,
but is not limited to, working for another
employer, the management or operation
of a private business for profit (includ-
ing personally owned businesses, partner-
ships, corporations, and other business
entities), and other self-employment.
§ 0.735-103 Interpretation and advisory
service.
(a) Department counselor. The Gen-
eral Counsel is designated Counselor for
the Department and shall serve as the
Department's designee to the Civil Serv-
ice Commission on matters covered by
this part. He shall be responsible for
coordinating the Department’s counsel-
ing services and for assuring that coun-
seling and interpretations on questions
of conflicts of interest and other matters
covered by this part are available to des-
ignated deputy counselors. He may
form ad hoc committees to evaluate the
effectiveness of the standards, or to con-
sider any new or unusual question aris-
ing from their application.
(b) Depyty counselors. Such depyty
counselors as,may be required. shall be
designated to give authoritative advice
and guidance to current and prospective
employees and special Government em-
ployees on questions of conflicts of-inter-
est ey on other matters covered by this
part.
§ 0.735-104 Notification to employees
atid. special Government employees.
The provisions of this part and all re-
visions thereof shall be brought to the
attention of and made available to:
(a) Each employee and special Gov-
ernment employee at the time of issu-
ance and at least annually thereafter;
(b) Each new employee and special
Government employee at the time of em-
ployment.
§ 0.735-105 Remedial action.
A violation of this part by an employee
or special Government employee may be
cause for remedial or disciplinary action.
Such action may include, but is not lim-
ited to:
(a) Changes in assigned duties;
(b) Divestment by the employee or
special Government employee of his con-
flicting interest;
(c) Disciplinary action, including
separation, which may be in addition to
any penalty prescribed by law; or
(d) Disqualification for a particular
assignment.
Remedial action, whether disciplinary or
otherwise, shall be effected in accordance
with any applicable laws, Executive or-
ders, and regulations.
§ 0.735-106 Interests of employee's or
special Government employee’s rela-
tives.
For the purposes of this part, the in-
terest of a spouse, minor child, or a blood
relative who is a full-time resident of an
employee's or special Government em-
Dloyee’s immediate household is consid-
ered to be an interest of the employee or
eminence rane tamplopecs . Gili «
Subpart B—Copduct and Responsibil-
ities of Employees
§ 6735-201 Basie‘principle.
(a) Each employee must realize that
the--Government’s basic and controlling
purpose in employing him is the public
interest, rather than his private or per-
sonal interest, and that he can never
have a right of tenure that transcends
the public good. He can properly be a
Government employee only as long as it
remains in the public interest for him
to be one. Public trust and confidence
in the integrity of the Government are
paramount.
(b) (1) This basic principle applies
with special force and effect in the De-
partment of Housing and Urban Develop-
ment, which deals directly with impor-
tant segments of the public, and whose
success depends upon public trust and
confidence in its actions. The official
actions of the Department often-have a
direct bearing upon the financial and
other interests of individuals, firms, and
institutions with which it does business.
Furthermore, the effective accomplish-
mient of the Department’s mNsion is sig-
nificantly dependefit upon a public image
that engenders confidence in the Depart-
ment’s integrity. Accordingly, the avoid-
ance of any involvement that tends to
damage that image is a responsibility of
exceptional importance for all employees
who participate in or influence official
operating determinations that affect the
interests of those with whom the Depart-
ment does business.
(2) If there is knowledge of an em-
ployee’s involvement in or association
with circumstances reasonably construed
to reduce public confidence in the acts
or determinations of the Department,
such knowledge may be sufficient cause
for the initiation of action adverse to
the employee. Employees, therefore, are
alerted to the gravity with avhich the
Department will view. any such involve-
ment, especially if it has to do with con-
flicts of interest or the compromise of
integrity—whether real or only apparent.
§ 0.735-202 Gifts, entertainment, and
favors.
(a) Except as provided in paragraph
(b) of this section, an employee shall not
solicit or accept, directly or indirectly,
any gift, gratuity, favor, entertainment,
loan, or any other thing of monetary
value, from a person who:
(1) Has, or is seeking to obtain, con-
tractual or other business or financial
relations with the Department; _
(2) Conducts operations or activities
that are regulated by the Department: or
(3) Has interests that may be substan-
tially affected by the performance or
nonperformance of the employee's official
duty.
(b) The prohibitions of paragraph (a)
of this section do not apply to:
(1) The acceptance of customary busi-
ness services from banks or other finan-
cial institutions if such services are ob-
tained under terms and conditions avail-
able to the general public;
(2) Obvious family or personal rela-
tionships, such as those between the em-
ployee. and his parents, children, or
spouse, when the circumstances make it
clear that it is those relationships rather
than:the business of the persons con-
cerned which are the motivating factors;
(3) The acceptance of food and re-
freshments of nominal value on infre-
quent occasions in the ordinary course of
a luncheon or dinner meeting or other
meeting or on an inspection tour where
an employee may properly be in attend- |
ance;
(4) The acceptance of unsolicited ad-
vertising or promotional material, such
as pens, pencils, note pads, calendars,
and other items of nominal intrinsic
value.
(c) An employee shall avoid any
action, whether or not specifically pro-
hibited by the regulations in this part,
which might result in, or create the ap-
pearance of:
(1) Using public office for private
gain;
(2) Giving preferential treatment to
any person;
(3) Impeding Government efficiency
or economy;
(4) Losing complete independence or
impartiality; or
(5) Making sa Government decision
outside official channels.
(d) An employee shall not solicit con-
tributions from another employee for a
gift, or make a donation as a gift, when
such gift is for an employee in a superior
official position. An employee in a su-
perior official position shall not accept
a gift presented as a contribution from
employees receiving less salary than
himself.
Ce) An employee shall not accept a
gift, present, decoration, or other thing
from a foreign government unless au-
thorized by law.
§ 0.735-203 Outside activity.
(a) An employee shall not engage in
outside employment or other outside ac-
tivity not compatible with the full and
proper discharge of his duties and re-
sponsibilities as an employee of the De-
partment. Incompatible activities in-
clude but are not limited to:
(1) Acceptance of a fee, compensa-
tion, gift, payment of expense, or any
other thing of monetary value in circum-
stances in which acceptance may result
in, or create the appearance of, a con-
flict of interest;
(2) Employment which tends to im-
pair his mental or physical capacity to
perform his official duties and responsi-
bilities in an acceptable manner;
(3) Activities that may be construed
by the public to be the official acts of the
Department; vi
(4) Activities that establish relation-
ships or property interests that may re-
sult in a confilct between his private in-
texests and his official duties; ang. ia 4t
2
, GS im ployment that,may involve he
use of information secured as a resuli.
of employment in the Department to
the detriment of the Department or the
public interest, or that may give prefer-
' ential treatment to any person, corpora-
-tion, public agericy, or group.
(b) An employee shall not receive any
salary or anything of monetary value
from a private source as compensation
for his services to the Government (18
U.S.C. 209). :
, (ce) Full-time employees and part-
time employees with a regularly sched-
uled tour of duty must obtain the prior
approval of a designated personnel officer
before engaging in outside employment
in the following categories:
‘(1) Employment related to or similar
to the substantive programs conducted
‘by any part of the Department. This
includes but is not limited to the broad
fields of real estate, mortgage lending,
property insurance, construction, con-
struction financing, and land and real
estate planning.
(2) Employment in the same profes-
sional field as that of the individual’s
official position.
(3) Employment with any person,
.firm, or other private organization hav-
ing business either directly or indirectly
with the Department.
(4) Employment by State, local, or
other governmental body.
(a) No full-time employee or part-
time employee with a regularly'scheduled
tour of duty shall maintain a publicly
listed place of business without the prior
approval of a designated personnel
officer.
(e) Except for employees subject to
the requirements of Subpart E of this
part, approvals required by paragraphs
(ec) and (d) of this section shall be
requested on Form HUD-—843, Request
for Authorization to Engage in Outside
Employment and/or Statement of Fi-
nancial Interests. All .pertinent facts
regarding the proposed employment,
such as the name of the employer, the
nature of the work to be performed, and
the amount of time involved, shall be
set forth.
(f) (1) Employees are encouraged to
engage in teaching, lecturing, and writ-
ing that is not prohibited by law, Ex-
ecutive order, or this part. However,
an employee shall not, either for or
without compensation, engage in teach-
ing, lecturing, or writing that is depend-
ent on.information obtained as a result
of his employment by the Department,
except when that information has been
made available to the general public or
will be made available on request, or
when the Secretary or his designee gives
written authorization for the use of non-
public information on the basis that the
use is in the public interest.
(2) An employee may use his name
and title in connection with articles for
publication which bear upon his work
in the Department only if he obtains
the approval of a designated personnel
officer.
(g) This section does not preclude an
employee from:
(1) Accepting bona fide reimburse-
ment, unless prohibited by law, for
actual expenses for travel and such other
necessary subsistence as is compatible
with this part for which no Government
payment or reimbursement is made.
However, an employee may not be re-
imbursed, and payment may not be made
on his behalf, for excessive personal
living expenses, gifts, entertainment or
other personal benefits.
(2) Participating in the affairs of or
accepting an award for a meritorious
public contribution or achievement given
by a charitable, religious, professional,
social, fraternal, nonprofit educational
and recreational, public service, or civic
organization.
(3) Participating in the activities of
National or State political parties not
proscribed by law.
§ 0.735-—204 Financial interests.
(a) An employee shall not:
(1) Have a direct or indirect financial
interest that conflicts, or appears to
conflict, with his official duties and re-
sponsibilities.
(2) Engage in, direetly or indirectly,
2, financial transaction as a result of, or
primarily relying on, information ob-
tained through his. employment by the
Department.
(3) Acquire securities issued by the
Federal National Mortgage Association.
(4) Acquire ownership of. stéck or
other interest in a rental project financed
with an FHA insured mortgage as long
as the insurance is in force.
(5) Acquire ownership of FHA deben-
tures or certificates:of claim.
(6) Acquire interest in a cooperative
or condominium housing project fi-
nanced under the National Housing Act
if the interest is not for obtaining a
home for himself or his family.
(7) Be an’ officer or director of any
organization which is an FHA approved
mortgagee or lending institution or which
services mortgages or other securities for
the Department. An employee may hold
stock or shares in such organizations
provided his official duties are such that
the holding will not create or tend to
create a conflict of interest. The prohi-
bitions of this paragraph do not apply
to Federal Credit Unions that have been
approved as Title I lending institutions.
(8) Participate directly or indirectly in
any real estate activities for speculative
purposes as distinguished from bona fide
investment purposes.
(b) This section does not preclude an
employee from having a financial inter-
est or engaging in financial transactions
to the same extent as a private citizen
not employed by the Department so long
as it is not prohibited by law, Executive
Order 11222, or this part.
§ 0.735-205 Personal real estate trans-
actions,
(a) Because the operations of the De-
partment are directly related to individ-
ual real estate transactions, all Depart-
ment employees must exercige the utmost
care in the. handling ef ‘Wey Dersonal
real estate activitits.“* teh
therefore report to a designated
nel officer the following types df Sera a
real estate transactions (if the transaé-
tidn involves FHA mdrtgage ingtrance,
the'report shall be filéd at the tine the
application for such insurance is filed;
other types of transactions Shall be re-
ported at the time of corisummation of
the transaction) :
(1) Any purchase or sale of real prop-
erty in which an employee has an
interest.
(2) Any Title I property improvement
loan obtained by the employee or in
which he has a financial interest. In
such case the employee must report the
name of the lending institution and a
description of the improvements being
financed.
(3). Any interest in a cooperative or
condominium housing project financed
under the National Housing. Act if it
involves a home for himself orhis family.
(b) In addition to the reporting. re-
quirements of paragraph (a) of this sees
tion, employees shall. report jall rea}
estate holdings other than those held as
personal residences.
(c) Except for employees subject to
the requirements of Subpart E of this
part, reports required by paragraphs
(a) and (b) ‘of this section shall be filed
on Form HUD-843, Request for Authori-
zation to Engage in Outside Employment
and/or Statement of Fmancial Interests.
§ 0:735-206 Use of intide informwnation.
“ Excépt as provided ip §°0.735-203(f),
no employee shall give or’‘use inside in-
formation acquired by means of his posia
tien to advance any private interest,
particularly the private interests of him-
self, his family, associates, or friends.
For the purpose of this section “inside
information” means information ob-
tained under Government authority but
which has not become part of the body of
public information.
§ 0.735-207 Intermediaries and product
recommendations,
No employee shall recommend or sug-
gest the use of any particular or identi-
fied nongovernmental intermediary to
deal with the Department nor shall he
recommend any device or product tested
by or for, or used by, the Department,
except as required by his official duties.
§ 0.735-208 Membership in organiza-
lions.
(a) An employee may not, in his offi-
cial capacity as an officer or employee of
the Department, serve as a member of
a non-Federal or private organization
except where express statutory authority
exists, or statutory language necessarily
implies such authority. However, ‘an
employee may serve in an individual ca-
pacity as a member of a non-Federal or
private organization, provided that:
(1) His membership does not violate
the restrictions noted in § 0.735-203; and
(2) His official title or organization
connection is not shown on any listing
or presented in any activity of the orga-
nization in such a manner as to imply
taat he is acting in, his official capacity,
(b), -An.emplqyee may be designated to
serve as a liaison representative of the
Department to a non-Federal or private
organization provided that:
(1) The activity relates to the work 6f
the Department. ;
(2) The employee does not participate
by vote in the policy determinations of
the organization.
(3) The Department is in no way
bound by any vote or action takén by the
organization.
§ 0.735-209 Use of Government prop-
erty.
An employee shall not directly or in-
directly use, or allow the use of Depart-
ment property of any kind, including
property leased to the Department, for
other than officially approved activities.
An employee has a positive duty to pro-
tect and conserve Government property,
including equipment, supplies, and other
property entrusted or issued to him,
§ 0.735-210 ‘Indebtedness.
An employee shall pay each just finan-
cial obligation in a proper and timely
manner, especially one imposed by law,
such as Federal, State, and local taxes.
For the purpose of this section, “just fi-
nancial obligation’’ means one acknowl-
edged by the employee or reduced to
judgment by a court, and “in a proper
and timely manner” means in a manner
which the Department determines does
not, under the circumstances, reflect ad-
verselyiom tha.@overnment as his. an-
Pioyer. fInhthe event of a dispute be-
tween amemptoyee and an alleged credi-
tor, this seetion dpes. not require the
Department to determine the walidity or
the. amount of the disputed dabt.
§ 0.735-211 Gambling, betting, and lot-
teries.
An employee shall not participate,
while on Government-owned or leased
property or while on duty for the Depart-
ment, in any gambling activity includ-
ing the operation of a gambling device, in
conducting a lottery or pool, in a game
for money or property, or in selling or
purchasing a number slip or ticket.
§ 0.735-212 General conduct; and con-
duct prejudicial to the Government,
(a) Each employee shall conduct him-
self in a manner that facilitates the ef-,
fective accomplishment of the work of
the Department, observing at all times
the requirements of courtesy, considera-
tion, and promptness in dealing with the
public and with persons or firms having
business with the Department;
(b) An employee shall not engage in
criminal, infamous, dishonest, immoral,
or notoriously disgraceful conduct, or
gener conduct prejudicial to the Govern-
ment,
Subpart C—Conduct and Responsibil-
ities of Special Government Em-
ployees
§ 0.735301
ployment.
A special Government employee shall
not use his Government employmensise®
Use of Covernment em-
a@ purpose that is, or gives the appear-
ance of being, motivated by the desire for
private gain for himself or another per-
son, particularly one with whom he has
family, business, or financial ties.
§ 0.735-302 Use of inside information.
(a) A special Government employee
shall not use inside information obtained
as a result of his Government employ-
ment for private gain for himself or
another person either by direct action on
his part or by counsel, recommendation,
or suggestion to another person, particu-
larly one with whom he has family, busi-
ness, or financial ties. For the purpose
of this section, “inside information”
means information obtained under Gov-
ernment authority which has not become
part of the body of public information.
(b) Special Government employees
may teach, lecture, or write in a manner
cons sient with the provisions of § 0.735-
203(f).
§ 0.735-303 Coercion.
A special Government employee shall
not use his Government employment to
coerce, or give the appearance of
coercing, a person to provide financial
benefit to himself or another person,
particularly one with whom he has
family, business, or financial ties.
§ 0.735-304 Gifts, entertainment, and
favors.
(a) Except as provided in paragraph
(b) of this section, a special Government
employee, while so employed or in con-
nection with his employment, shall not
receive or solicit from a person having
‘business with the Department anything
of monetary value as a gift, gratuity,
loan, entertainment, or favor for himself
or another person, particularly one with
whom he has family, business, or
financial ties.
(b) The exceptions of § 0.735-202(b),
which are applicable to employees, are
also applicable to special Government
employees.
§ 0.735-305 Applicability of other pro-
visions.
(a) Each special Government em-
ploye? is subject to the provisions of
§§ 0.735-201, 0.735—-208 through 0.735—212,
and 0.735-508.
(b) Each special Government em-
ployee shall acquaint himself with each
statute listed in Subpart D of this part.
Subpart D—Miscellaneous Statutory
Provisions
§ 0.735-401 Applicable statutory provi-
sions.
Each employee shall acquaint himself
with each statute that relates to his
ethical and other conduct as an employee
of the Department and of the Govern-
ment. The attention of each employee
is directed to the following statutory
provisions:
(a) House Concurrent Resolution 175,
85th Congress, 2d Session, 72 Stat. B12,
the “Code of Ethics for Government
Service”.
(b) Chapter 11 of Title 18, United
States Code, relating to bribery, graft,
and conflicts of interest, as appropriate
to the employees concerned.
(c) The prohibition against lobbying
with appropriated funds (18 U.S.C. 1913).
(d) The prohibitions against disloyal-
ty and striking (5 U.S.C. 118p, 118r).
(e) The prohibition against the em-
ployment of a member of a Communist
organization (50 U.S.C. 784).
({) The prohibitions against (1) the
disclosure of classified information (18
U.S.C. 798, 50 U.S.C. 783); and (2) the
disclosure of confidential information
(18 U.S.C. 1905).
(¢) The provision relating to the
habitual use of intoxicants to excess (5
U.S.C 640).
(h) The prohibition against the mis-
use of a Government vehicle (5 U.S.C.
T8(c)).
(i) The prohibition against the mis-
use of the franking privilege (18 U.S.C.
1719).
(j) The prohibition against the use of
deceit in an examination or personnel
action in connection with Government
employment (5 U.S.C. 637).
(k) The prohibition against fraud or
false statements in a Government matter
(18 U.S.C. 1001).
(1) The prohibition against mutilat-
ing or destroying a public record (18
U.S.C. 2071). ‘
(m) The prohibition against counter-
feiting and forging transportation re-
quests (18 U.S.C. 508).
(n) The prohibitions against (1) em-
bezzlement of Government money or
property (18 U.S.C. 641); (2) failing to
account for public money (18 U.S.C.
643); and (3) embezzlement of the
money or, property of another person in
the possession of an employee by reason
of his employment (18 U.S.C. 654).
(o) The prohibition against unauthor-
ized use of documents relating to claims
from or by the Government (18 U.S.C.
285).
(p) The prohibition against pro-
scribed political activities—The Hatch
Act (5 U.S.C. 118i), and 18 U.S.C. 602,
603, 607, and 608.
Subpart E—Staftements of Employ-
ment and Financial Interests
§ 0.735-501 Submission of statements,
(a) Not later than 90 days after the
effective date of this part, each employee
occupying a position designated in the
Appendix shall submit to the reviewing
official specified in § 0.735-505, Form
HUD-844, Statement of Employment and
Financial Interests.
(b) Each employee who enters on duty
after the effective date of this part in a
position designated in the Appendix shall
submit to the reviewing official specified
in § 0.735-505 a statement not later than
30 days after his entrance on duty or
90 days after the effective date of this
part, whichever is later.
(ec) Additions to, deletions from, and
other amendments of the list of positions
in the Appendix may be made from time
to time as necessary to carry out the
purpose of the law, Executive Order
11222, and Part 735 of the Civil Service
4
Commission Regulations (5 CFR Part
735). Such amendments are effective
upon actual notification to the incum-
bents. The amended list shall be sub-
mitted at least annually for publication
in the FEDERAL REGISTER.
§ 0.735-502 Supplementary statements.
(a) Changes in, or additions to, the
information contained in an employee’s
statement shall be reported to the appro-
priate reviewing official in a supplemen-
tary statement at the end of the quarter
in which the change occurs. Interim
memoranda reports shall be filed if re-
quired to meet the prior approval provi-
sions of § 0.735-203 (c) and (d), or the
requirements of § 0.735-205(a) concern-
ing the timely reporting of real estate
transactions. Financial interests or em-
ployment acquired during a quarter, but
disposed of or terminated before the end
of such quarter, shall constitute changes
or additions to be reported at the end
of such quarter. Quarters end March 31,
June 30, September 30, and December 31.
If there are no changes or additions in
a quarter, a negative report is not re-
quired. However, for the purpose of
annual review, a supplementary state-
ment, negative or otherwise, is required
as of June 30 of each year.
(b) A supplementary statement shall
be submitted on Form HUD~—844, and
shall be designated “Supplementary”.
A supplementary statement shall fur-
nish all information required by an initial
statement and by appropriate notation,
shall indicate any changes. in, or addi-
tions to the information set out in the
employee's initial statement or last sup-
plementary statement.
§ 0.735-503 Information not known by
employees.
If any information required to be in-
cluded on a statement or supplementary
statement, including holdings placed in
trust, is not known to the employee but
is known to another person, the em-
ployee shall request that other person
to submit information in his behalf.
§ 0.735-504 Information prohibited.
This subpart does not require an em-
ployee to report information relating to
his connection with, or interest in, a
professional society or a charitable, reli-
gious, social, fraternal, recreational, pub-
lic service, civic, or political organization
or a similar organization not conducted
as a business enterprise. For the pur-
pose of this section, educational and
other institutions doing research and de-
velopment or related work involving
grants of money from or contracts with
the Government are deemed “business
enterprises” and are required to be in-
cluded in an employee's statement.
§ 0.735-505 Review of statements.
(a) Employees reporting directly to
the Secretary shall submit their state-
ments directly to the Secretary for re-
view; employees reporting directly to
the Under Secretary shall submit their
statements directly to the Under Secre-
tary for review.
(b) Employees reporting directly to
Assistant Secretaries shall submit their
statements directly to the apenoprge
Assistant Secretary for review; employges
reporting directly to the General Counse
shall submit their statements directly
the General Counsel for revigw. —
(c) Employees not included, in para-
graph (a) or (b) of this section shall
submit their statements directly to the
appropriate Deputy Counselor.
(d) When a statement submitted un-
der paragraph (b) or (c) of this section,
or information from other sources, indi-
cates a conflict between the interest of
an employee and the performance of his
official duties, and when the conflict or
appearance of conflict cannot be resolved
by the reviewing official, he shall report
the information concerning the conflict
or appearance of conflict to the Secre-
tary through the Counselor. The em-
ployee concerned shall be given an op-
portunity to explain the conflict or
appearance of conflict before amy re-
quired remedial action is initiated.
§ 0.735-506 Confidentiality of. state-
ments.
After the review process has been com-
pleted, the statements submitted under
§ 0.735-505 shall be promptly forwarded
to the personnel office having eusony, of
the employee's official personnel /file.
The statements shall be held in ¢on-
fidente and rétained: in? limited access
files. Information from a statement
may not be disclosed except as the Secre-
tary or his designee, or the Civil Service
Commission may determine for good
cause shown.
§ 0.735-507 Effect of employee's state-
ments on other requirements.
The statements and supplementary
statements reauired of employees are in
addition to, and not in substitution for,
or in derogation of, any similar reauire-
ment imposed by law, order, or regula-
tion. The submission of a statement or
supplementary statement by an employee
does not permit him or any other person
to participate in a matter in which his
or the other person's participation is
prohibited by law, order or regulation.
§ 0:735—-508 Specific provisions for spe-
cial Government employees.
(a) Except as provided in paragraph
(c) of this section, each special Govern-
ment employee shall submit to: the re-
viewing official specified in § 0.735-505,
Form HUD-844-A, Statement of Employ-
ment and Financial Interésts, not later
than the time of his employment. He
shall keep his statement current through-
out his employment with the Department
by the peas of supplementary
ents.
(b) The provisions of §§ 0.735—503,
0.735-504, 0.735-506, and 0.735-507 are
applicable to a special Government ém-
ployee who is reauired to file a statement.
(c) The Secretary or his designee may
waive the provisions of this section in the
case of a special Government employee
who is not a consultant or an expert when
it is determined that the dutieg of the
position held by the special Govérnment
employee are of a nature and at such
level of responsibility that the submis-
sion of a statement is not necessary to
protect the integrity of the Government.
For the purpose of this-paragrapi® “én
sultant” and “expert” have the meanings
given those terms by Chapter 304 of the
Federal Personnel Manual.
This part was approved by the Civil
Service Commission on May 17, 1966.
Effective date. This part shall be
effective as of June 24, 1966.
RoserT C. WEAVER,
Secretary of Housing and
Urban Development.
APPENDIX—LIsT oF PosITIons SUBJECT TO
Suppart E
Officers and employees in the following
positions are subject to the provisions of
Subpart E of this part:
(a) Employees paid at a level of the Federal
Executive Salary Schedule established by the
Federal Executive Salary Act of 1964, as
amended, except the Secretary, who is sub-
ject to separate reporting requirements under
section 401 of Executive Order 11222;
(b) Employees in grade GS-16 or above of
the General Schedule established by the
Classification Act of 1949, ag amended, or in
comparable or higher positions not subject to
that Act; and
(c) Employees in the following positions:
OFFICE OF THE SECRETARY
Departmental:
Administrative Assistant te the Seoretary.
Director, Low-Incomg Mowing Demepetta-
tion Staff, Office 9f Program Poljcy.
Director, Division of Research Dévelop-
ment, Office of Program Policy.
Director, Equal Opportunity Standards and
Regulations Staff.
Deputy Director, Compliance Division,
Field Supervisory Investigators, Compliance
Division.
Director, Audit Division, Office of Adminis-
tration.
Deputy Director, Audit Division, Office of
Administration.
Field Supervisory Auditors, Audit Division,
Office of Administration.
Director, Division of Finance and Accotints,
Office of Administration.
Deputy Director, Division of Finance and
Accounts, Office of Administration.
Director, Division of General Services, Office
of Administration.
Director, Property Management and Pro-
curement Branch, Division of General Serv-
ices, Office of Administration.
Field:
Deputy Regional Administrator,
, Regional Director of Administration.
Director, Division of Community Facilities.
Deputy Director, Division of Community
Facilitiesi
Director, Division of Urban Renewal.
Deputy. Director, Division of Urban Re-
newal,
Director, Northwest Operations.
Deputy Director, Northwest Operations.
Regional Counsel.
Chief, Real Estate Disposition, Division of
Urban Renewal.
Chief, Real Estate Acquisition, Division of
Urban Renewal.
ASSISTANT SECRETARY FOR MORTGAGE CREDIT
AND FEDERAL HOUSING COMMISSIONER
Federal Housing Administration
Departmental:
Director of Compliance Coordination.
Director of Examination and Audit.
Director, Audit Division.
Director, Division of General Services.
Deputy .Director, Division of General
Services.
Chief, Procurement and Property Section,
Division of General Services.
Director, Community Disposition Staff.
é Deputy Director, Community Disposition
taf.
Field Office Director, Community Disposi-
tion Staff.
Bield: :
Multifamily Housing Representatiyp.
Director, Insuring Office.
Deputy Director, Insuring Office.
Assistant Director (Chief of Operations).
Chief Underwriter.
State Director (New York).
Assistant State Director.
Federal National Mortgage Association
Departmental:
Vice President.
Loan Manager.
Secretary-Treasurer.
Controller.
Director of Examination and Audit.
Field:
Agency Manager.
Assistant Agency Manager.
ASSISTANT SECRETARY FOR METROPOLITAN
DEVELOPMENT
Departmental:
Director, Urban Planning Assistance
Branch, Office of Planning Standards and
Coordination.
Director, Division of Academic Faci"ties,
Office of Technical Services.
Land and Facilities Development Admuuais-
tration:
Director, Division of Senior Citizens Hous-
ing.
Director, Division of Public Facilities
Grants.
Director, Division of Public Facilities
Loans,
Director, Division of Land Development.
Director, Division of College Housing.
Director, Finance Standards Staff.
Deputy Director, Finance Standards Staff.
Urban Transportation Administration:
Positions at GS-15.
URBAN RENEWAL ADMINISTRATION
Departmental:
Director, Demonstration Program Branch.
Deputy Assistant Commissioner, Rehabili-
tation and Codes.
PUBLIC HOUSING ADMINISTRATION
Departmental:
Director, Office Services Branch.
Financing Officer.
Field:
Regional Director.
{F.R. Doc. 66-6930; Filed, June 23, 1966;
8:48 a.m.]
U.S. GOVERNMENT PRINTING OFFICE : 1966 0—223-092
Reprinted from Federal Register - 31 F.R. p 8781-85
June 24,
Title 24—HOUSING AND HOUSING
CREDIT
Subtitle A—Office of the Secretary,
Department of Housing and Urban
Development
PART O—STANDARDS OF CONDUCT
Pursuant to and in accordance with
sections 201 through 209 of Title 18 of
the United States Code, Executive Order
11222 of May 8, 1965 (30 F.R. 6469), and
Title 5, Chapter I, Part 735 of the Code
of Federal Regulations, Part 0 is added
to Subtitle A of Title 24 of the Code of
Federal Regulations, reading as follows:
Subpart A—Ger=rol Provisions
Purpose.
Definitions.
Interpretation and advisory serv-
ice.
Notification to employees and
special Government employees.
Remedial action.
Interest of employee's or special
Government employee's rela-
tives.
Subpart B—Conduct and Responsibilities of
Employees
Basic principle.
Gifts, entertainment, and favors.
Outside activity.
Financial interests.
Personal real estate transactions.
Use of inside information.
Intermediaries and product rec-
ommendations.
Membership in organizations.
Use of Government property.
Indebtedness.
Gambling, betting, and lotteries.
General conduct; and conduct
prejudicial to the Government,
Subpart C—Conduct and Responsibilities of _
Special Government Employees
0.725-301 Use of Government employment.
0.735-302 Use of inside information.
0.735-303 Coercion,
0.735-304 Gifts, entertainment, and favors.
0.735-305 Applicability of other provisions.
Sec,
0.735-101
0.735-102
0.735-103
0.735-104
0.735-105
0.735-106
0.735—201
0.735-202
0.785-203
0.735-204
0.735-205
0.735-206
0.735-207
0.735-208
0.735—-209
0.735—210
0.735—-211
0.735-212
Subpart D—Miscellaneous Statutory Provisions
0.735-401 Applicable statutory provisions.
Subpart E—Statements of Employment and
Financial Interests
Submission of statements,
Supplementary statements.
Information not known by em-
ployees.
Information prohibited.
Review of statements.
Confidentiality of statements,
Effect of employee’s statements
on other requirements.
Specific provisions for special
Government employees.
Appendiz—List of Positions Subject to
Subpart E.
0.735501
0.735—502
0.735-503
0.735-504
0.735-505
0.735—506
0.735-507
0.735-508
1966
Avurnoniry: The provisions of this Part 0
issued under E.O. 11222 of May 8, 1965, 39
F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735. 10%,
Subpart A—General Provisions
§ 0.735-101 Purpose.
The maintenance of unusually high
standards of honesty, integrity, impar-
tiality, and conduct by Government em-
ployees and special Government em-
ployees is essential to assure the proper
performance of the Government business
and the maintenance of public confi-
dence. The avoidance of misconduct
and conflicts of interest on the part of
Government employees and special Gov-
ernment employees through informed
judgment is indispensable to the main-
tenance of these standards. To accord
with these concepts, this part sets forth
the Department’s regulations prescrib-
ing standards of conduct and responsi-
bilities, and governing statements of
employment and financial interests for
employees and special Government
employees.
§ 0.735-102 Definitions.
(a) “Department” means the Depart-
ment of Housing and Urban Develop-
ment.
(b) “Employee” means an officer or
employee of the Department, but does
not include a special Government em-
ployee.
(ec) “Special Government employee”
means an officer or employee of the De-
partment appointed to serve with or
without compensation, for not more than
130 consecutve days during any period of
365 days, on a full-time, part-time, or
intermittent basis, and who is retained,
designated, appointed, or employed as a
special Government employee under the
provisions of section 202 of Title 18 of
the United States Code.
(d) “Person” means an individual, a
corporation, a company, an association,
a firm, a partnership, a society, a joint
stock company, or any other organiza-
tion or institution.
(e) “Outside employment” means all
gainful employment other than the per-
formance. of official duties. It includes,
but is not limited to, working for another
employer, the management or operation
of a private business for profit (includ-
ing personally owned businesses, partner-
ships, corporations, and other business
entities), and other self-employment.
§ 0.735-103 Interpretation and advisory
service.
(a) Department counselor. The Gen-
eral Counsel is designated Counselor for
the Department and shall serve as the
Department's designee to the Civil Serv-
ice Commission on matters covered by
this part. He shall be responsible for
coordinating the Department’s counsel-
ing services and for assuring that coun-
seling and interpretations on questions
of conflicts of interest and other matters
covered by this part are available to des-
ignated deputy counselors. He may
form ad hoc committees to evaluate the
effectiveness of the standards, or to con-
sider any new or unusual question aris-
ing from their application.
(b) Depyty counselors. Such depyty
counselors as,may be required. shall be
designated to give authoritative advice
and guidance to current and prospective
employees and special Government em-
ployees on questions of conflicts of-inter-
est ey on other matters covered by this
part.
§ 0.735-104 Notification to employees
atid. special Government employees.
The provisions of this part and all re-
visions thereof shall be brought to the
attention of and made available to:
(a) Each employee and special Gov-
ernment employee at the time of issu-
ance and at least annually thereafter;
(b) Each new employee and special
Government employee at the time of em-
ployment.
§ 0.735-105 Remedial action.
A violation of this part by an employee
or special Government employee may be
cause for remedial or disciplinary action.
Such action may include, but is not lim-
ited to:
(a) Changes in assigned duties;
(b) Divestment by the employee or
special Government employee of his con-
flicting interest;
(c) Disciplinary action, including
separation, which may be in addition to
any penalty prescribed by law; or
(d) Disqualification for a particular
assignment.
Remedial action, whether disciplinary or
otherwise, shall be effected in accordance
with any applicable laws, Executive or-
ders, and regulations.
§ 0.735-106 Interests of employee's or
special Government employee’s rela-
tives.
For the purposes of this part, the in-
terest of a spouse, minor child, or a blood
relative who is a full-time resident of an
employee's or special Government em-
Dloyee’s immediate household is consid-
ered to be an interest of the employee or
eminence rane tamplopecs . Gili «
Subpart B—Copduct and Responsibil-
ities of Employees
§ 6735-201 Basie‘principle.
(a) Each employee must realize that
the--Government’s basic and controlling
purpose in employing him is the public
interest, rather than his private or per-
sonal interest, and that he can never
have a right of tenure that transcends
the public good. He can properly be a
Government employee only as long as it
remains in the public interest for him
to be one. Public trust and confidence
in the integrity of the Government are
paramount.
(b) (1) This basic principle applies
with special force and effect in the De-
partment of Housing and Urban Develop-
ment, which deals directly with impor-
tant segments of the public, and whose
success depends upon public trust and
confidence in its actions. The official
actions of the Department often-have a
direct bearing upon the financial and
other interests of individuals, firms, and
institutions with which it does business.
Furthermore, the effective accomplish-
mient of the Department’s mNsion is sig-
nificantly dependefit upon a public image
that engenders confidence in the Depart-
ment’s integrity. Accordingly, the avoid-
ance of any involvement that tends to
damage that image is a responsibility of
exceptional importance for all employees
who participate in or influence official
operating determinations that affect the
interests of those with whom the Depart-
ment does business.
(2) If there is knowledge of an em-
ployee’s involvement in or association
with circumstances reasonably construed
to reduce public confidence in the acts
or determinations of the Department,
such knowledge may be sufficient cause
for the initiation of action adverse to
the employee. Employees, therefore, are
alerted to the gravity with avhich the
Department will view. any such involve-
ment, especially if it has to do with con-
flicts of interest or the compromise of
integrity—whether real or only apparent.
§ 0.735-202 Gifts, entertainment, and
favors.
(a) Except as provided in paragraph
(b) of this section, an employee shall not
solicit or accept, directly or indirectly,
any gift, gratuity, favor, entertainment,
loan, or any other thing of monetary
value, from a person who:
(1) Has, or is seeking to obtain, con-
tractual or other business or financial
relations with the Department; _
(2) Conducts operations or activities
that are regulated by the Department: or
(3) Has interests that may be substan-
tially affected by the performance or
nonperformance of the employee's official
duty.
(b) The prohibitions of paragraph (a)
of this section do not apply to:
(1) The acceptance of customary busi-
ness services from banks or other finan-
cial institutions if such services are ob-
tained under terms and conditions avail-
able to the general public;
(2) Obvious family or personal rela-
tionships, such as those between the em-
ployee. and his parents, children, or
spouse, when the circumstances make it
clear that it is those relationships rather
than:the business of the persons con-
cerned which are the motivating factors;
(3) The acceptance of food and re-
freshments of nominal value on infre-
quent occasions in the ordinary course of
a luncheon or dinner meeting or other
meeting or on an inspection tour where
an employee may properly be in attend- |
ance;
(4) The acceptance of unsolicited ad-
vertising or promotional material, such
as pens, pencils, note pads, calendars,
and other items of nominal intrinsic
value.
(c) An employee shall avoid any
action, whether or not specifically pro-
hibited by the regulations in this part,
which might result in, or create the ap-
pearance of:
(1) Using public office for private
gain;
(2) Giving preferential treatment to
any person;
(3) Impeding Government efficiency
or economy;
(4) Losing complete independence or
impartiality; or
(5) Making sa Government decision
outside official channels.
(d) An employee shall not solicit con-
tributions from another employee for a
gift, or make a donation as a gift, when
such gift is for an employee in a superior
official position. An employee in a su-
perior official position shall not accept
a gift presented as a contribution from
employees receiving less salary than
himself.
Ce) An employee shall not accept a
gift, present, decoration, or other thing
from a foreign government unless au-
thorized by law.
§ 0.735-203 Outside activity.
(a) An employee shall not engage in
outside employment or other outside ac-
tivity not compatible with the full and
proper discharge of his duties and re-
sponsibilities as an employee of the De-
partment. Incompatible activities in-
clude but are not limited to:
(1) Acceptance of a fee, compensa-
tion, gift, payment of expense, or any
other thing of monetary value in circum-
stances in which acceptance may result
in, or create the appearance of, a con-
flict of interest;
(2) Employment which tends to im-
pair his mental or physical capacity to
perform his official duties and responsi-
bilities in an acceptable manner;
(3) Activities that may be construed
by the public to be the official acts of the
Department; vi
(4) Activities that establish relation-
ships or property interests that may re-
sult in a confilct between his private in-
texests and his official duties; ang. ia 4t
2
, GS im ployment that,may involve he
use of information secured as a resuli.
of employment in the Department to
the detriment of the Department or the
public interest, or that may give prefer-
' ential treatment to any person, corpora-
-tion, public agericy, or group.
(b) An employee shall not receive any
salary or anything of monetary value
from a private source as compensation
for his services to the Government (18
U.S.C. 209). :
, (ce) Full-time employees and part-
time employees with a regularly sched-
uled tour of duty must obtain the prior
approval of a designated personnel officer
before engaging in outside employment
in the following categories:
‘(1) Employment related to or similar
to the substantive programs conducted
‘by any part of the Department. This
includes but is not limited to the broad
fields of real estate, mortgage lending,
property insurance, construction, con-
struction financing, and land and real
estate planning.
(2) Employment in the same profes-
sional field as that of the individual’s
official position.
(3) Employment with any person,
.firm, or other private organization hav-
ing business either directly or indirectly
with the Department.
(4) Employment by State, local, or
other governmental body.
(a) No full-time employee or part-
time employee with a regularly'scheduled
tour of duty shall maintain a publicly
listed place of business without the prior
approval of a designated personnel
officer.
(e) Except for employees subject to
the requirements of Subpart E of this
part, approvals required by paragraphs
(ec) and (d) of this section shall be
requested on Form HUD-—843, Request
for Authorization to Engage in Outside
Employment and/or Statement of Fi-
nancial Interests. All .pertinent facts
regarding the proposed employment,
such as the name of the employer, the
nature of the work to be performed, and
the amount of time involved, shall be
set forth.
(f) (1) Employees are encouraged to
engage in teaching, lecturing, and writ-
ing that is not prohibited by law, Ex-
ecutive order, or this part. However,
an employee shall not, either for or
without compensation, engage in teach-
ing, lecturing, or writing that is depend-
ent on.information obtained as a result
of his employment by the Department,
except when that information has been
made available to the general public or
will be made available on request, or
when the Secretary or his designee gives
written authorization for the use of non-
public information on the basis that the
use is in the public interest.
(2) An employee may use his name
and title in connection with articles for
publication which bear upon his work
in the Department only if he obtains
the approval of a designated personnel
officer.
(g) This section does not preclude an
employee from:
(1) Accepting bona fide reimburse-
ment, unless prohibited by law, for
actual expenses for travel and such other
necessary subsistence as is compatible
with this part for which no Government
payment or reimbursement is made.
However, an employee may not be re-
imbursed, and payment may not be made
on his behalf, for excessive personal
living expenses, gifts, entertainment or
other personal benefits.
(2) Participating in the affairs of or
accepting an award for a meritorious
public contribution or achievement given
by a charitable, religious, professional,
social, fraternal, nonprofit educational
and recreational, public service, or civic
organization.
(3) Participating in the activities of
National or State political parties not
proscribed by law.
§ 0.735-—204 Financial interests.
(a) An employee shall not:
(1) Have a direct or indirect financial
interest that conflicts, or appears to
conflict, with his official duties and re-
sponsibilities.
(2) Engage in, direetly or indirectly,
2, financial transaction as a result of, or
primarily relying on, information ob-
tained through his. employment by the
Department.
(3) Acquire securities issued by the
Federal National Mortgage Association.
(4) Acquire ownership of. stéck or
other interest in a rental project financed
with an FHA insured mortgage as long
as the insurance is in force.
(5) Acquire ownership of FHA deben-
tures or certificates:of claim.
(6) Acquire interest in a cooperative
or condominium housing project fi-
nanced under the National Housing Act
if the interest is not for obtaining a
home for himself or his family.
(7) Be an’ officer or director of any
organization which is an FHA approved
mortgagee or lending institution or which
services mortgages or other securities for
the Department. An employee may hold
stock or shares in such organizations
provided his official duties are such that
the holding will not create or tend to
create a conflict of interest. The prohi-
bitions of this paragraph do not apply
to Federal Credit Unions that have been
approved as Title I lending institutions.
(8) Participate directly or indirectly in
any real estate activities for speculative
purposes as distinguished from bona fide
investment purposes.
(b) This section does not preclude an
employee from having a financial inter-
est or engaging in financial transactions
to the same extent as a private citizen
not employed by the Department so long
as it is not prohibited by law, Executive
Order 11222, or this part.
§ 0.735-205 Personal real estate trans-
actions,
(a) Because the operations of the De-
partment are directly related to individ-
ual real estate transactions, all Depart-
ment employees must exercige the utmost
care in the. handling ef ‘Wey Dersonal
real estate activitits.“* teh
therefore report to a designated
nel officer the following types df Sera a
real estate transactions (if the transaé-
tidn involves FHA mdrtgage ingtrance,
the'report shall be filéd at the tine the
application for such insurance is filed;
other types of transactions Shall be re-
ported at the time of corisummation of
the transaction) :
(1) Any purchase or sale of real prop-
erty in which an employee has an
interest.
(2) Any Title I property improvement
loan obtained by the employee or in
which he has a financial interest. In
such case the employee must report the
name of the lending institution and a
description of the improvements being
financed.
(3). Any interest in a cooperative or
condominium housing project financed
under the National Housing. Act if it
involves a home for himself orhis family.
(b) In addition to the reporting. re-
quirements of paragraph (a) of this sees
tion, employees shall. report jall rea}
estate holdings other than those held as
personal residences.
(c) Except for employees subject to
the requirements of Subpart E of this
part, reports required by paragraphs
(a) and (b) ‘of this section shall be filed
on Form HUD-843, Request for Authori-
zation to Engage in Outside Employment
and/or Statement of Fmancial Interests.
§ 0:735-206 Use of intide informwnation.
“ Excépt as provided ip §°0.735-203(f),
no employee shall give or’‘use inside in-
formation acquired by means of his posia
tien to advance any private interest,
particularly the private interests of him-
self, his family, associates, or friends.
For the purpose of this section “inside
information” means information ob-
tained under Government authority but
which has not become part of the body of
public information.
§ 0.735-207 Intermediaries and product
recommendations,
No employee shall recommend or sug-
gest the use of any particular or identi-
fied nongovernmental intermediary to
deal with the Department nor shall he
recommend any device or product tested
by or for, or used by, the Department,
except as required by his official duties.
§ 0.735-208 Membership in organiza-
lions.
(a) An employee may not, in his offi-
cial capacity as an officer or employee of
the Department, serve as a member of
a non-Federal or private organization
except where express statutory authority
exists, or statutory language necessarily
implies such authority. However, ‘an
employee may serve in an individual ca-
pacity as a member of a non-Federal or
private organization, provided that:
(1) His membership does not violate
the restrictions noted in § 0.735-203; and
(2) His official title or organization
connection is not shown on any listing
or presented in any activity of the orga-
nization in such a manner as to imply
taat he is acting in, his official capacity,
(b), -An.emplqyee may be designated to
serve as a liaison representative of the
Department to a non-Federal or private
organization provided that:
(1) The activity relates to the work 6f
the Department. ;
(2) The employee does not participate
by vote in the policy determinations of
the organization.
(3) The Department is in no way
bound by any vote or action takén by the
organization.
§ 0.735-209 Use of Government prop-
erty.
An employee shall not directly or in-
directly use, or allow the use of Depart-
ment property of any kind, including
property leased to the Department, for
other than officially approved activities.
An employee has a positive duty to pro-
tect and conserve Government property,
including equipment, supplies, and other
property entrusted or issued to him,
§ 0.735-210 ‘Indebtedness.
An employee shall pay each just finan-
cial obligation in a proper and timely
manner, especially one imposed by law,
such as Federal, State, and local taxes.
For the purpose of this section, “just fi-
nancial obligation’’ means one acknowl-
edged by the employee or reduced to
judgment by a court, and “in a proper
and timely manner” means in a manner
which the Department determines does
not, under the circumstances, reflect ad-
verselyiom tha.@overnment as his. an-
Pioyer. fInhthe event of a dispute be-
tween amemptoyee and an alleged credi-
tor, this seetion dpes. not require the
Department to determine the walidity or
the. amount of the disputed dabt.
§ 0.735-211 Gambling, betting, and lot-
teries.
An employee shall not participate,
while on Government-owned or leased
property or while on duty for the Depart-
ment, in any gambling activity includ-
ing the operation of a gambling device, in
conducting a lottery or pool, in a game
for money or property, or in selling or
purchasing a number slip or ticket.
§ 0.735-212 General conduct; and con-
duct prejudicial to the Government,
(a) Each employee shall conduct him-
self in a manner that facilitates the ef-,
fective accomplishment of the work of
the Department, observing at all times
the requirements of courtesy, considera-
tion, and promptness in dealing with the
public and with persons or firms having
business with the Department;
(b) An employee shall not engage in
criminal, infamous, dishonest, immoral,
or notoriously disgraceful conduct, or
gener conduct prejudicial to the Govern-
ment,
Subpart C—Conduct and Responsibil-
ities of Special Government Em-
ployees
§ 0.735301
ployment.
A special Government employee shall
not use his Government employmensise®
Use of Covernment em-
a@ purpose that is, or gives the appear-
ance of being, motivated by the desire for
private gain for himself or another per-
son, particularly one with whom he has
family, business, or financial ties.
§ 0.735-302 Use of inside information.
(a) A special Government employee
shall not use inside information obtained
as a result of his Government employ-
ment for private gain for himself or
another person either by direct action on
his part or by counsel, recommendation,
or suggestion to another person, particu-
larly one with whom he has family, busi-
ness, or financial ties. For the purpose
of this section, “inside information”
means information obtained under Gov-
ernment authority which has not become
part of the body of public information.
(b) Special Government employees
may teach, lecture, or write in a manner
cons sient with the provisions of § 0.735-
203(f).
§ 0.735-303 Coercion.
A special Government employee shall
not use his Government employment to
coerce, or give the appearance of
coercing, a person to provide financial
benefit to himself or another person,
particularly one with whom he has
family, business, or financial ties.
§ 0.735-304 Gifts, entertainment, and
favors.
(a) Except as provided in paragraph
(b) of this section, a special Government
employee, while so employed or in con-
nection with his employment, shall not
receive or solicit from a person having
‘business with the Department anything
of monetary value as a gift, gratuity,
loan, entertainment, or favor for himself
or another person, particularly one with
whom he has family, business, or
financial ties.
(b) The exceptions of § 0.735-202(b),
which are applicable to employees, are
also applicable to special Government
employees.
§ 0.735-305 Applicability of other pro-
visions.
(a) Each special Government em-
ploye? is subject to the provisions of
§§ 0.735-201, 0.735—-208 through 0.735—212,
and 0.735-508.
(b) Each special Government em-
ployee shall acquaint himself with each
statute listed in Subpart D of this part.
Subpart D—Miscellaneous Statutory
Provisions
§ 0.735-401 Applicable statutory provi-
sions.
Each employee shall acquaint himself
with each statute that relates to his
ethical and other conduct as an employee
of the Department and of the Govern-
ment. The attention of each employee
is directed to the following statutory
provisions:
(a) House Concurrent Resolution 175,
85th Congress, 2d Session, 72 Stat. B12,
the “Code of Ethics for Government
Service”.
(b) Chapter 11 of Title 18, United
States Code, relating to bribery, graft,
and conflicts of interest, as appropriate
to the employees concerned.
(c) The prohibition against lobbying
with appropriated funds (18 U.S.C. 1913).
(d) The prohibitions against disloyal-
ty and striking (5 U.S.C. 118p, 118r).
(e) The prohibition against the em-
ployment of a member of a Communist
organization (50 U.S.C. 784).
({) The prohibitions against (1) the
disclosure of classified information (18
U.S.C. 798, 50 U.S.C. 783); and (2) the
disclosure of confidential information
(18 U.S.C. 1905).
(¢) The provision relating to the
habitual use of intoxicants to excess (5
U.S.C 640).
(h) The prohibition against the mis-
use of a Government vehicle (5 U.S.C.
T8(c)).
(i) The prohibition against the mis-
use of the franking privilege (18 U.S.C.
1719).
(j) The prohibition against the use of
deceit in an examination or personnel
action in connection with Government
employment (5 U.S.C. 637).
(k) The prohibition against fraud or
false statements in a Government matter
(18 U.S.C. 1001).
(1) The prohibition against mutilat-
ing or destroying a public record (18
U.S.C. 2071). ‘
(m) The prohibition against counter-
feiting and forging transportation re-
quests (18 U.S.C. 508).
(n) The prohibitions against (1) em-
bezzlement of Government money or
property (18 U.S.C. 641); (2) failing to
account for public money (18 U.S.C.
643); and (3) embezzlement of the
money or, property of another person in
the possession of an employee by reason
of his employment (18 U.S.C. 654).
(o) The prohibition against unauthor-
ized use of documents relating to claims
from or by the Government (18 U.S.C.
285).
(p) The prohibition against pro-
scribed political activities—The Hatch
Act (5 U.S.C. 118i), and 18 U.S.C. 602,
603, 607, and 608.
Subpart E—Staftements of Employ-
ment and Financial Interests
§ 0.735-501 Submission of statements,
(a) Not later than 90 days after the
effective date of this part, each employee
occupying a position designated in the
Appendix shall submit to the reviewing
official specified in § 0.735-505, Form
HUD-844, Statement of Employment and
Financial Interests.
(b) Each employee who enters on duty
after the effective date of this part in a
position designated in the Appendix shall
submit to the reviewing official specified
in § 0.735-505 a statement not later than
30 days after his entrance on duty or
90 days after the effective date of this
part, whichever is later.
(ec) Additions to, deletions from, and
other amendments of the list of positions
in the Appendix may be made from time
to time as necessary to carry out the
purpose of the law, Executive Order
11222, and Part 735 of the Civil Service
4
Commission Regulations (5 CFR Part
735). Such amendments are effective
upon actual notification to the incum-
bents. The amended list shall be sub-
mitted at least annually for publication
in the FEDERAL REGISTER.
§ 0.735-502 Supplementary statements.
(a) Changes in, or additions to, the
information contained in an employee’s
statement shall be reported to the appro-
priate reviewing official in a supplemen-
tary statement at the end of the quarter
in which the change occurs. Interim
memoranda reports shall be filed if re-
quired to meet the prior approval provi-
sions of § 0.735-203 (c) and (d), or the
requirements of § 0.735-205(a) concern-
ing the timely reporting of real estate
transactions. Financial interests or em-
ployment acquired during a quarter, but
disposed of or terminated before the end
of such quarter, shall constitute changes
or additions to be reported at the end
of such quarter. Quarters end March 31,
June 30, September 30, and December 31.
If there are no changes or additions in
a quarter, a negative report is not re-
quired. However, for the purpose of
annual review, a supplementary state-
ment, negative or otherwise, is required
as of June 30 of each year.
(b) A supplementary statement shall
be submitted on Form HUD~—844, and
shall be designated “Supplementary”.
A supplementary statement shall fur-
nish all information required by an initial
statement and by appropriate notation,
shall indicate any changes. in, or addi-
tions to the information set out in the
employee's initial statement or last sup-
plementary statement.
§ 0.735-503 Information not known by
employees.
If any information required to be in-
cluded on a statement or supplementary
statement, including holdings placed in
trust, is not known to the employee but
is known to another person, the em-
ployee shall request that other person
to submit information in his behalf.
§ 0.735-504 Information prohibited.
This subpart does not require an em-
ployee to report information relating to
his connection with, or interest in, a
professional society or a charitable, reli-
gious, social, fraternal, recreational, pub-
lic service, civic, or political organization
or a similar organization not conducted
as a business enterprise. For the pur-
pose of this section, educational and
other institutions doing research and de-
velopment or related work involving
grants of money from or contracts with
the Government are deemed “business
enterprises” and are required to be in-
cluded in an employee's statement.
§ 0.735-505 Review of statements.
(a) Employees reporting directly to
the Secretary shall submit their state-
ments directly to the Secretary for re-
view; employees reporting directly to
the Under Secretary shall submit their
statements directly to the Under Secre-
tary for review.
(b) Employees reporting directly to
Assistant Secretaries shall submit their
statements directly to the apenoprge
Assistant Secretary for review; employges
reporting directly to the General Counse
shall submit their statements directly
the General Counsel for revigw. —
(c) Employees not included, in para-
graph (a) or (b) of this section shall
submit their statements directly to the
appropriate Deputy Counselor.
(d) When a statement submitted un-
der paragraph (b) or (c) of this section,
or information from other sources, indi-
cates a conflict between the interest of
an employee and the performance of his
official duties, and when the conflict or
appearance of conflict cannot be resolved
by the reviewing official, he shall report
the information concerning the conflict
or appearance of conflict to the Secre-
tary through the Counselor. The em-
ployee concerned shall be given an op-
portunity to explain the conflict or
appearance of conflict before amy re-
quired remedial action is initiated.
§ 0.735-506 Confidentiality of. state-
ments.
After the review process has been com-
pleted, the statements submitted under
§ 0.735-505 shall be promptly forwarded
to the personnel office having eusony, of
the employee's official personnel /file.
The statements shall be held in ¢on-
fidente and rétained: in? limited access
files. Information from a statement
may not be disclosed except as the Secre-
tary or his designee, or the Civil Service
Commission may determine for good
cause shown.
§ 0.735-507 Effect of employee's state-
ments on other requirements.
The statements and supplementary
statements reauired of employees are in
addition to, and not in substitution for,
or in derogation of, any similar reauire-
ment imposed by law, order, or regula-
tion. The submission of a statement or
supplementary statement by an employee
does not permit him or any other person
to participate in a matter in which his
or the other person's participation is
prohibited by law, order or regulation.
§ 0:735—-508 Specific provisions for spe-
cial Government employees.
(a) Except as provided in paragraph
(c) of this section, each special Govern-
ment employee shall submit to: the re-
viewing official specified in § 0.735-505,
Form HUD-844-A, Statement of Employ-
ment and Financial Interésts, not later
than the time of his employment. He
shall keep his statement current through-
out his employment with the Department
by the peas of supplementary
ents.
(b) The provisions of §§ 0.735—503,
0.735-504, 0.735-506, and 0.735-507 are
applicable to a special Government ém-
ployee who is reauired to file a statement.
(c) The Secretary or his designee may
waive the provisions of this section in the
case of a special Government employee
who is not a consultant or an expert when
it is determined that the dutieg of the
position held by the special Govérnment
employee are of a nature and at such
level of responsibility that the submis-
sion of a statement is not necessary to
protect the integrity of the Government.
For the purpose of this-paragrapi® “én
sultant” and “expert” have the meanings
given those terms by Chapter 304 of the
Federal Personnel Manual.
This part was approved by the Civil
Service Commission on May 17, 1966.
Effective date. This part shall be
effective as of June 24, 1966.
RoserT C. WEAVER,
Secretary of Housing and
Urban Development.
APPENDIX—LIsT oF PosITIons SUBJECT TO
Suppart E
Officers and employees in the following
positions are subject to the provisions of
Subpart E of this part:
(a) Employees paid at a level of the Federal
Executive Salary Schedule established by the
Federal Executive Salary Act of 1964, as
amended, except the Secretary, who is sub-
ject to separate reporting requirements under
section 401 of Executive Order 11222;
(b) Employees in grade GS-16 or above of
the General Schedule established by the
Classification Act of 1949, ag amended, or in
comparable or higher positions not subject to
that Act; and
(c) Employees in the following positions:
OFFICE OF THE SECRETARY
Departmental:
Administrative Assistant te the Seoretary.
Director, Low-Incomg Mowing Demepetta-
tion Staff, Office 9f Program Poljcy.
Director, Division of Research Dévelop-
ment, Office of Program Policy.
Director, Equal Opportunity Standards and
Regulations Staff.
Deputy Director, Compliance Division,
Field Supervisory Investigators, Compliance
Division.
Director, Audit Division, Office of Adminis-
tration.
Deputy Director, Audit Division, Office of
Administration.
Field Supervisory Auditors, Audit Division,
Office of Administration.
Director, Division of Finance and Accotints,
Office of Administration.
Deputy Director, Division of Finance and
Accounts, Office of Administration.
Director, Division of General Services, Office
of Administration.
Director, Property Management and Pro-
curement Branch, Division of General Serv-
ices, Office of Administration.
Field:
Deputy Regional Administrator,
, Regional Director of Administration.
Director, Division of Community Facilities.
Deputy Director, Division of Community
Facilitiesi
Director, Division of Urban Renewal.
Deputy. Director, Division of Urban Re-
newal,
Director, Northwest Operations.
Deputy Director, Northwest Operations.
Regional Counsel.
Chief, Real Estate Disposition, Division of
Urban Renewal.
Chief, Real Estate Acquisition, Division of
Urban Renewal.
ASSISTANT SECRETARY FOR MORTGAGE CREDIT
AND FEDERAL HOUSING COMMISSIONER
Federal Housing Administration
Departmental:
Director of Compliance Coordination.
Director of Examination and Audit.
Director, Audit Division.
Director, Division of General Services.
Deputy .Director, Division of General
Services.
Chief, Procurement and Property Section,
Division of General Services.
Director, Community Disposition Staff.
é Deputy Director, Community Disposition
taf.
Field Office Director, Community Disposi-
tion Staff.
Bield: :
Multifamily Housing Representatiyp.
Director, Insuring Office.
Deputy Director, Insuring Office.
Assistant Director (Chief of Operations).
Chief Underwriter.
State Director (New York).
Assistant State Director.
Federal National Mortgage Association
Departmental:
Vice President.
Loan Manager.
Secretary-Treasurer.
Controller.
Director of Examination and Audit.
Field:
Agency Manager.
Assistant Agency Manager.
ASSISTANT SECRETARY FOR METROPOLITAN
DEVELOPMENT
Departmental:
Director, Urban Planning Assistance
Branch, Office of Planning Standards and
Coordination.
Director, Division of Academic Faci"ties,
Office of Technical Services.
Land and Facilities Development Admuuais-
tration:
Director, Division of Senior Citizens Hous-
ing.
Director, Division of Public Facilities
Grants.
Director, Division of Public Facilities
Loans,
Director, Division of Land Development.
Director, Division of College Housing.
Director, Finance Standards Staff.
Deputy Director, Finance Standards Staff.
Urban Transportation Administration:
Positions at GS-15.
URBAN RENEWAL ADMINISTRATION
Departmental:
Director, Demonstration Program Branch.
Deputy Assistant Commissioner, Rehabili-
tation and Codes.
PUBLIC HOUSING ADMINISTRATION
Departmental:
Director, Office Services Branch.
Financing Officer.
Field:
Regional Director.
{F.R. Doc. 66-6930; Filed, June 23, 1966;
8:48 a.m.]
U.S. GOVERNMENT PRINTING OFFICE : 1966 0—223-092
Comments