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Subpart B-Conduct and Responsi

bilities of Employees $ 0.735–201 Basic 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 personal 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 Department of Housing and Urban Development, which deals directly with important 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 accomplishment of the Department's mission is significantly dependent upon a public image that engenders confidence in the Department's integrity. Accordingly, the avoidance 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 Department does business.

(2) If there is knowledge of an employee'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 which the Department will view any such involvement, especially if it has to do with conflicts of interest or the compromise of integrity-whether real only apparent. $ 0.735–202 Proscribed actions.

An employee shall avoid any action, whether or not specifically prohibited by the regulations in this subpart, which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Government decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Government. $ 0.735–203 Gifts, entertainment, and

favors. (a) Except as provided in paragraphs (b) and (e) 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, contractual 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 substantially affected by the performance or nonperformance of the employee's official duty.

(b) The prohibitions of paragraph (a) of this section do not apply in the following cases:

(1) Obvious family or personal relationships, such as those between the parents, children, or spouse of the employee and the employee, when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;

(2) Acceptance of food and refreshments of nominal value on infrequent 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 attendance;

(3) The acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; and

(4) The acceptance of un licited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior,


or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness or retirement.

(d) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342.

(e) Neither this section nor $ 0.735204 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses for travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Department orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967. $ 0.735–204 Outside employment and

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

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest;

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner;

(3) Activities that may be construed by the public to be the official acts of the Department;

(4) Activities that establish relationships or property interests that may result in a conflict between his private interests and his official duties; and

(5) Employment that may involve the use of information secured as a result of employment in the Department to the detriment of the Department or the pub

lic interest, or that may give preferential treatment to any person, corporation, public agency, or group.

(6) Engaging directly or indirectly in the purchase, sale or management of real estate, including the financing of realty transactions; except (i) the employee's residence, immediate past residence, vacation or retirement home, or (ii) realty transactions involving a moderate scale of investment properties which are not likely in the foreseeable future to be involved in a HUD program.

(7) 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, construction financing, and land and real estate planning.

(8) Employment with any person, firm, or other private organization haying business either directly or indirectly with the Department.

(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).

(c) Full-time employees and part-time employees with a regularly scheduled tour of duty must obtain the prior approval of the appropriate deputy counselor before engaging in outside employment in the following categories:

(1) Employment in the same professional field as that of the individual's official position. However, an attorney in this Department may, in off-duty hours and consistent with his official responsibilities, participate, without compensation for his services, in a program to provide legal assistance and representation to poor persons. Such participation shall not include representation or assistance in any judicial matter or proceeding, whether Federal, State, or local, involving programs of this Department or in any other matter or proceeding in which the United States, including the District of Columbia, is a party or has a direct and substantial interest. Notice of intention to participate in such a program shall be given by the attorney in writing to his superior in such detail as that official shall require.

(2) Employment by State, local, or other governmental body.

(d) No full-time employee or parttime employee with a regularly scheduled tour of duty shall maintain a publicly listed place of business without the prior approval of the appropriate deputy counselor.

(e) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, Executive order, Civil Service Commission regulations, or this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or Board of Examiners for the Foreign Service, that is dependent on information obtained as a result of his Government employment, 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 nonpublic information on the basis that the use is in the public interest.

(1) Each employee including the Secretary, and including each full-time member of a committee, board, or commission appointed by the President, shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Department, or which draws substantially on official data or ideas which have not become part of the body of public information pursuant to the regulations in this part.

(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 the appropriate deputy counselor.

(f) This section does not preclude an employee from:

(1) Participation in the activities of National or State political parties not proscribed by law.

(2) Participation in the affairs of or acceptance of 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. $ 0.735–205 Financial interests.

(a) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or

appears to conflict substantially, with his Government duties and responsibilities.

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(3) Acquire securities issued by the Federal National Mortgage Association.

(4) Acquire ownership of stock 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 debentures or certificates of claim.

(6) Acquire interest in a cooperative or condominium housing project financed 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 oficial duties are such that the holding will not create or tend to create a conflict of interest. The prohibitions 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 on a moderate scale. There is a presumption of speculation when the use of borrowed funds is involved on a continuing basis or in large sums or the income characteristic of an investment is disproportionate or absent.

(b) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, Executive Order 11222, Civil Service Commission regulations, or this part. $ 0.735-206 Use of Government prop

erty. An employee shall not directly or indirectly use, or allow the use of Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him.

$ 0.735–207 Misuse of information. criminal, infamous, dishonest, immoral, For the purpose of furthering a private

or notoriously disgraceful conduct, or interest, an employee shall not, except

other conduct prejudicial to the Govern

ment. as provided in § 0.735–204(e), directly or indirectly use, or allow the use of, of- $ 0.735–211 Intermediaries and prod. ficial information obtained through or in uct recommendations. connection with his Government employ

No employee shall recommend or sugment which has not been made available

gest the use of any particular or identito the general public.

fied nongovernmental intermediary to $ 0.735–208 Indebtedness.

deal with the Department nor shall he

recommend any device or product tested An employee shall pay each just fi

by or for, or used by, the Department, nancial obligation in a proper and timely

except as required by his official duties. manner, especially one imposed by law, such as Federal, State, and local taxes. $ 0.735-212 Membership in organizaFor the purpose of this section, a "just

tions. financial obligation" means one acknowl

(a) An employee may not, in his offiedged by the employee or reduced to

cial capacity as an officer or employee of judgment by a court, and “in a proper

the Department, serve as a member of a and timely manner" means in a man

non-Federal or private organization exner which the Department determines

cept where express statutory authority does not, under the circumstances, re

exists, or statutory language necessarily flect adversely on the Government as

implies such authority, or where the his employer. In the event of a dispute

Secretary has determined in writing that between an employee and an alleged

such service would be beneficial to the creditor, this section does not require the

Department and consistent with such Department to determine the validity or

officer's or employee's service as a Deamount of the disputed debt.

partment employee. However, an em$ 0.735–209 Gambling, bett and lot- ployee may serve in an individual capateries.

city as a member of a non-Federal or

private organization, provided that: An employee shall not participate,

(1) His membership does not violate while on Government owned or leased

the restrictions noted in $ 0.735-204; and property or while on duty for the Depart

(2) His official title or organization ment, in any gambling activity including

connection is not shown on any listing the operation of a gambling device, in

or presented in any activity of the orgaconducting a lottery or pool, in a game

nization in such a manner as to imply for money or property, or in selling or

that he is acting in his official capacity. purchasing a number slip or ticket. How

(b) An employee may be designated to ever, this section does not preclude

serve as a liaison representative of the activities:

Department to a non-Federal or private (a) Necessitated by an employee's law

organization provided that: enforcement duties;

(1) The activity relates to the work of (b) Under section 3 of Executive Or

the Department. der 10927, namely, solicitations conducted

(2) The employee does not participate by organizations composed of employees

by vote in the policy determinations of among their own members for organiza

the organization. tional support or for benefit or welfare

(3) The Department is in no way funds for their members, or similar De

bound by any vote or action taken by partment-approved activities.

the organization. $ 0.735-210 General conduct; and conduct prejudicial to the Government.

$ 0.735–213 Prohibited activities by for

mer employees. (a) Each employee shall conduct himself in a manner that facilitates the ef

A former officer or employee or former fective accomplishment of the work of

Special Government employee of the exthe Department, observing at all times ecutive branch of the U.S. Government, the requirements of courtesy, considera- of any independent agency of the United tion, and promptness in dealing with the States or of the District of Columbia shall public and with persons or organizations not: having business with the Department; (a) At any time after his Government (b) An employee shall not engage in employment has ended, knowingly act as an agent or attorney for anyone other (h) The prohibition against the misthan the United States in connection use of a Government vehicle (31 U.S.C. with any matter involving a specific party 638a(c)). or parties in which the United States is (i) The prohibition against the misa party or has a direct or substantial use of the franking privilege (18 U.S.C. interest and in which he participated 1719). personally and substantially as an officer (j) The prohibition against the use of or employee for the Government through deceit in an examination or personnel decision, approval, disapproval, recom- action in connection with Government mendation, the rendering of advice, in- employment (18 U.S.C. 1917). vestigation, or otherwise while so em- (k) The prohibition against fraud or ployed. (18 U.S.C. 207(a).)

false statements in a Government matter (b) Within 1 year after his Govern- (18 U.S.C. 1001). ment employment has ended, appear per

(1) The prohibition against mutilating sonally before any court or department or destroying a public record (18 U.S.C. or agency of the Government as agent, 2071). or attorney for, anyone other than the (m) The prohibition against counterUnited States in connection with any feiting and forging transportation rematter involving a specific party or par- quests (18 U.S.C. 508). ties in which the United States is a party

(n) The prohibitions against (1) emor directly or substantially interested,

bezzlement of Government money or and which was under his official responsi- property (18 U.S.C. 641); (2) failing to bility as an officer or employee of the account for public money (18 U.S.C. 643); Government at any time within a period

and (3) embezzlement of the money or of one year prior to the termination of property of another person in the possuch responsibility (18 U.S.C. 202(b) and session of an employee by reason of his 207(b)).

employment (18 U.S.C. 654).

(0) The prohibition against unau$ 0.735–214 Miscellaneous statutory pro- thorized use of documents relating to visions.

claims from or by the Government (18 Each employee shall acquaint himself U.S.C. 285). with each statute that relates to his (p) The prohibitions against political ethical and other conduct as an employee activities in subchapter III of chapter 73 of the Department and of the Govern- of title 5, United States Code, and 18 ment. The attention of each employee is U.S.C. 602, 603, 607, and 608. directed to the following statutory pro- (q) The prohibition against an emvisions:

ployee acting as the agent of a foreign (a) House Concurrent Resolution 175, principal registered under the Foreign 85th Congress, second session, 72 Stat. Agents Registration Act (18 U.S.C. 219). B12, the “Code of Ethics for Government Service".

Subpart —Conduct and Responsi(b) Chapter 11 of Title 18, United bilities of Special Government States Code, relating to bribery, graft, Employees and conflicts of interest, as appropriate to the employees concerned.

$ 0.735–301 Use of Government em. (c) The prohibition against lobbying

ployment with appropriated funds (18 U.S.C. A special Government employee shall 1913).

not use his Government employment for (d) The prohibitions against disloyalty

a purpose that is, or gives the appearance and striking (5 U.S.C. 7311, 18 U.S.C. of being, motivated by the desire for pri1918).

vate gain for himself or another person, (e) The prohibition against the em- particularly one with whom he has fam. ployment of member of a Communist ily, business, or financial ties. organization (50 U.S.C. 784).

$ 0.735–302 Use of inside information. (f) The prohibitions against (1) the disclosure of classified information (18

(a) A special Government employee

shall not use inside information obtained U.S.C. 798, 50 U.S.C. 783); and (2) the

as a result of his Government employdisclosure of confidential information

ment for private gain for himself or an(18 U.S.C. 1905).

other person either by direct action on (g) The provision relating to the his part or by counsel, recommendation, habitual use of intoxicants to excess (5 or suggestion to another person, particuU.S.C. 7352).

larly one with whom he has family, busi

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