HUD-52537
March 1976

2.10 Interest of Members, Officers, or Employees of PHA, Members of Local Governing 3ody or Other Public Officials.

No member, officer, or employee of the PHA, no member of the governing body of the locality (city and county) in which the project is situated, no member of the governing body of the locality in which the PHA was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the project, during his tenure or for one year thereafter, shall have any interest, direct or indirect, in this Contract or in any proceeds or benefits arising therefrom.

2.11 Interest of Member of or Delegate to Congress.

No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this Contract or to any benefits which may arise therefrom.

2.12 Sales or Foreclosures.

In the event of foreclosure, including foreclosure by the Government, or in the event of any assignment or sale agreed to by the Government or made to the Government, assistance payments shall continue in accordance with the terms of the Contract.

WARNING: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willfully makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both.

This is in response to your February 26, 1986 memorandum in
which you asked whether it would be legally possible to use
excess section 8 payments to assist additional units in the
captioned project. We understand from a telephone conversation
with Peggy Cockrell of your staff that currently $210,150 in Loan
Management Set Aside contract authority is provided for 91 units,
while only $144,000 is actually needed for the 91 units and an
additional 25 units could be assisted with the excess.

Provided that the additional units would be within the
limits established by Congress, and the Owner and HUD agree to
the contract modification through an amendment to the current HAP
contract, the change would be legally acceptable.