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Sec. 0.1 Cross-reference to employees ethical

conduct standards and financial disclo

sure regulations. 0.2 Outside employment and other activi

ties. 0.3 Financial interests.

AUTHORITY: 6 U.S.C. 7301; 42 U.S.C. 3535(d).

SOURCE: 61 FR 15350, Apr. 5, 1996, unless otherwise noted.

EFFECTIVE DATE NOTE: At 61 FR 15350, Apr. 5, 1996, part 0 was revised, effective May 6, 1996. For the convenience of the user, the superseded material is set forth after the revised part 0.



gage lending, property insurance, appraisal services, construction, struction financing, land planning, and real estate development;

(5) Serving as an officer or director of any organization which engages in lobbying activities concerning Department programs; (6) Serving as an officer or director of

Department-approved mortgagee, lending institution organization which services mortgages or other securities for the Department;

(7) Accepting employment, with or without compensation, with any person or business entity doing business with the Department;

(c) An employee shall not receive any salary or any thing of monetary value from a private source as compensation for his or her services to the Government (18 U.S.C. 209).

(d) An employee must obtain the prior approval of the appropriate Deputy Counselor:

(1) Before using his or her title or reference to his or her government employment or experience in connection with a commercial enterprise, or

(2) Before accepting employment, with or without compensation

(i) With a State or local government,

80.1 Cross-reference to employees eth

ical conduct standards and finan

cial disclosure regulations. Employees of the Department of Housing and Urban Development (Department) are subject to the executive branch-wide standards of ethical conduct at 5 CFR part 2635 and the executive branch-wide financial disclosure regulation at 5 CFR part 2634.


80.2 Outside employment and other

activities. (a) Reference in this section to outside employment and outside activities is not intended to cover employee investments. That subject is covered in 80.735-204.

(b) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the employee's official duties and responsibilities. Incompatible activities include, but are not limited to:

(1) Outside activities which tend to impair the employee's ability or capacity to perform official duties and responsibilities.

(2) Outside activities that may be construed by the public to be the official acts of the Department;

(3) Outside activities that establish relationships or property interests that may result in a conflict between private interests and official duties;

(4) Active participation in, or conduct of, a business dealing with, or related to, real estate or manufactured housing including, but not limited to, real estate brokerage, management and

(ii) In the same professional field as that of the employee's official position.

(e) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, Executive order, Office of Personnel Management regulations, or this part, except that

(1) An employee may not receive compensation for any lecture, writing, or consultation, the subject matter of which is substantially related to the responsibilities, programs, or operations of the Department;

(2) An employee may not, either with or without compensation, engage in teaching, lecturing or writing that is dependent on information obtained as a result of his or her Government employment, except when that information has been made available to the general public, or will be made available on request, or when the appropriate Assistant Secretary or his or her designee gives written authorization

for the use of nonpublic information on (1) In prosecuting a claim against the the basis that the use is in the public United States; or interest.

(2) In connection with any proceed(3) An employee may use his or her ing, application, request for ruling, title in connection with writing for contract or other particular matter in publication only if:

which the United States is a party or (i) The writing contains a statement has a direct and substantial interest indicating that the views contained and which is before any Federal or Distherein are those of the employee as an

trict of Columbia department, agency, individual and do not necessarily rep

or court (18 U.S.C. 205). resent the views of the Department of

(i) Permissible exceptions to the proHousing and Urban Development; or

hibitions set forth in paragraphs (g) (ii) Such use of the employee's title

and (h) of this section include: is approved in advance by the appro

(1) Representation without compriate Assistant Secretary or equiva

pensation in connection with a disciplilent, or his or her designee.

nary, loyalty, or personnel proceeding; (4) An employee may not accept any

(2) Representation with or without honorarium of more than $2,000 for any

compensation of parents, spouse, child, appearance, speech or article (2 U.S.C.

or those to whom the employee owes a 4411), except if the honorarium is paid

fiduciary duty except in those matters directly to a charitable organization at

in which the employee has participated the request of the employee and se

personally and substantially as a Govlected by the payor from a list of 5 or

ernment employee or which are the more charitable organizations provided

subject of his official responsibility; by the employee. In computing the

and $2,000 amount, the following may be ex

(3) Statements required to be made cluded:

under penalty for perjury or contempt. (i) Actual travel and subsistence ex

An employee seeking to engage in one penses for the employee and the em of these excepted activities is encourployee's spouse or aide; and

aged to consult in advance with a Dep(ii) Amounts paid or incurred for any

uty Counselor. agent's fees or commissions.

(j) The prohibitions set forth in para(1) Any employee who is compensated

graphs (g) and (h) of this section are in at an amount equal to or above GS-16

addition to, and not in lieu of, any in the General Schedule and who occu

other restrictions contained in this pies a full-time position, appointment

subpart. to which must be made by the Presi

(k) This section does not prohibit an dent by and with the advice and con

employee from serving in an individual sent of the Senate, may not have in

capacity as an officer or a member of any calendar year outside earned in

the Board of Directors of: come attributable to such calendar

(1) A Federal Credit Union, or year which is in excess of 15 per cent of

(2) A cooperative or condominium asthe employee's salary (Pub. L. 95-521,

sociation for a housing project which is section 210, 5 U.S.C. App.).

not subject to regulation by the De(g) An employee may not directly or

partment or, if so regulated, in which indirectly seek or receive compensa

the employee personally resides. tion for services, rendered by himself

(1) When participating in any activity or others, in connection with any pro

permitted by this section, an employee ceeding, application, request for ruling,

shall make certain that his or her officontract, claim, or other particular

cial title or Department connection is matter in which the United States is a

not shown or used in a manner which party or has a direct and substantial

implies that the employee is acting in interest and which is before any Fed

an official capacity. eral or District of Columbia depart (52 FR 27113, July 17, 1987. Redesignated at 61 ment or agency (18 U.S.C. 203).

FR 19188, May 1, 1996) (h) An employee may not act, with or EFFECTIVE DATE NOTE: At 61 FR 19188, May without compensation, as agent or at 1, 1996, $0.735–203 was redesignated as $0.2, eftorney for another:

fective May 6, 1996.


80.3 Financial interests.

(a) An employee shall not have a direct or indirect financial interest that conflicts, or appears to conflict, with his or her official duties and responsibilities. Such interests include, but are not limited to, the voluntary acceptance, acquisition or holding of:

(1) Securities issued by the Federal National Mortgage Association and securities collateralized by FNMA securities.

(2) FHA debentures or certificates of claim.

(3) Stock or other interest in a Department-owned, insured or subsidized multifamily project or single family dwelling, cooperative unit, or dominium unit, except to the extent that the stock or other interest represents the employee's principal residence. Employees who wish to purchase a Department-held property as a principal residence must adhere to the procedures established by the Assistant Secretary for Housing for the administration of the property disposition program set forth in Handbook 4310.5.

(4) Any Department subsidy provided pursuant to section 8 of the United States Housing Act of 1937, as amended, to or on behalf of a tenant of property owned by the employee. However, an employee may accept the benefit of such a subsidy when:

(i) The employee involuntarily acquires a property which at the time of acquisition has a tenant receiving such a subsidy but only as long as that tenant continues to reside in the property, or

(ii) An incumbent tenant who has not previously received such a subsidy becomes the beneficiary thereof but only if there is no increase in that tenant's rent upon the commencement of subsidy payments other than normal annual adjustments.

(5) Any direct creditor interest in a mortgage insured by the Department.

(b) Notwithstanding paragraph (a) of this section, an employee may accept, acquire or hold

(1) An interest in a mutual or money market fund which has holdings listed in paragraph (a) of this section, and which:

(i) Has a broadly diversified portfolio not specializing in any particular industry;

(ii) Is widely held; and

(iii) Is not under the employee's control.

(2) A limited partnership interest in a large public partnership (i.e. one which has at least 5,000 partnership interests) less than 25% of the assets of which are Department insured

or subsidized projects;

(3) Mortgage insurance provided pursuant to section 203 of the National Housing Act on any one single family residence in addition to the employee's current principal residence.

(c) If an employee acquires an interest prior to the commencement of employment with the Department which is prohibited under paragraph (a) of this section, or involuntarily acquires such a prohibited interest after the commencement of employment with the Department, the matter must be reported promptly to a Deputy Counselor. The Deputy Counselor will then determine whether retention of the interest is permissible or whether divestment or other appropriate remedial action is required.

(d)(1) An employee must not participate in his or her capacity as a Government employee in any matter in which, to his or her knowledge, the employee, his or her spouse, minor child, any organization in which the employee is serving as an officer, director, trustee, partner, or staff member, or a partner of the employee has a financial interest. In addition, an employee must not participate in his or her capacity as a Government employee in any matter in which, to the employee's knowledge, a person, business, or nonprofit organization with whom the employee is negotiating, or has an arrangement for, employment has a financial interest. For purposes of this paragraph a matter includes an application, contract, claim, request for ruling, controversy, charge, accusation, arrest, judicial or other proceeding, or other particular matter. (18 U.S.C. 208(a)).

(2) Paragraph (d)(1) of this section does not apply:

(i) If a Deputy Counselor first determines that the financial interest is not so substantial as to be deemed likely to


0.735-209 Intermediaries and product rec

ommendations. 0.735–210 Membership in organizations in an

official capacity. 0.735–211 Political activities. 0.735-212 Miscellaneous statutory provi


Subpart C-Statements of Employment

and Financial Interests

affect the integrity of the services which the Government may expect from the employee; or

(ii) If the financial interest is within one of the following categories which are hereby exempted from the requirements of section 208(a) of title 18, United States Code, as being too remote or too inconsequential to affect the integrity of an employee's service:

(A) Any holding in a widely held mutual or money market fund, or regulated investment company, which is not under the employee's control and which has a broadly diversified portfolio not specializing in any particular industry;

(B) Participation in a bona fide employee benefit plan, other than a profit-sharing or stock-bonus plan, that is maintained by a former employer to the extent that the employee's rights in the plan are vested and require no additional services by him or her or further payment to the plan by the former employer with respect to the services of the employee. (52 FR 27113, July 17, 1987. Redesignated at 61 FR 19188, May 1, 1996)

EFFECTIVE DATE NOTE: At 61 FR 19188, May 1, 1996, 80.735-204 was redesignated as $0.3, effective May 6, 1996.

0.735_301 Employees required to file under

the Ethics in Government Act of 1978. 0.735302 Employees required to file con

fidential financial disclosure statements. 0.735303 Employee's grievance regarding

filing requirements. 0.735 304 Reporting and review require

ments. 0.735–305 Confidentiality of employees'


Subpart D-Conduct and Responsibilities

of Special Government Employees 0.735 401 Applicable provisions. 0.735 402 Outside employment, activities

and financial interests. 0.735 403 Political activities. 0.735 404 Financial reporting. 0.735_405 Post employment restrictions.

EFFECTIVE DATE NOTE: At 61 FR 15350, Apr. 5, 1996, part 0 was revised, effective May 6, 1996. For the convenience of the user, the superseded material is set forth as follows:

Subpart E-Conduct and Responsibilities of

Former Employees 0.735-501 Prohibited activities by former

employees. 0.735-502 Disciplinary action. 0.735-503 Initiating disciplinary proceed

ings. 0.735_504 Notice. 0.735-505 Hearings. 0.735–506 Decision without a hearing. 0.735 507 Appeals. 0.735_508 Sanctions. 0.735-509 Judicial review.

AUTHORITY: 5 U.S.C. 301; 18 U.S.C. 201-212; E.O. 11222, E.O. 12674, 3 CFR, 1964-1965 Comp., p. 306; 5 CFR 735.101-412.

SOURCE: 52 FR 27113, July 17, 1987, unless otherwise noted.


Subpart A-General Provisions

Sec. 0.735–101 Purpose. 0.735-102 Definitions. 0.735–103 Notification to employees. 0.735–104 Responsibilities of Ethics Officials. 0.735–105 Disciplinary and other remedial


Subpart A-General Provisions

Subpart B-Conduct and Responsibilities of


0.735-201 Proscribed actions. 0.735–202 Gifts, entertainment, and favors. 0.735-205 Misuse of Government personnel

and property. 0.735-206 Misuse of official information. 0.735-207 Misuse of official position. 0.735-208 General conduct and conduct prej

udicial to the Government.

80.738–101 Purpose.

The maintenance of high standards of honesty, integrity and impartiality by Government employees is essential for the proper performance of the public business and the maintenance of confidence by citizens in their Government. To inform the public and Department staff as to the specific application of this general principle, this part sets forth the Department's regulations prescrib ing standards of conduct for, and governing the submission of statements of employment

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