care in the handling of their personal real estate activities. Employees must therefore report to a designated personnel officer the following types of personal real estate transactions (if the transaction involves FHA mortgage insurance, the report shall be filed at the time the application for such insurance is filed; other types of transactions shall be reported at the time of consummation of the transaction):

(1) Any purchase or sale of real property 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 or his family.

(b) In addition to the reporting requirements of paragraph (a) of this section, employees shall report all real 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 Authorization to Engage in Outside Employment and/or Statement of Financial Interests. § 0.735-206 Use of inside information.

Except as provided in § 0.735-203 (f), no employee shall give or use inside information acquired by means of his position to advance any private interest, particularly the private interests of himself, his family, associates, or friends. For the purpose of this section "inside information" means information obtained 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 suggest the use of any particular or identified 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 organizations.

(a) An employee may not, in his official 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 capacity 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 organization in such a manner as to imply that he is acting in his official capacity.

(b) An employee 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 of 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 taken by the organization.

An employee shall pay each just financial 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 financial obligation” means one acknowledged 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 adversely on the Government as his employer. In the event of a dispute between an employee and an alleged creditor, this section does not require the Department to determine the validity or the amount of the disputed debt.

§ 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 Department, in any gambling activity including 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 himself in a manner that facilitates the effective accomplishment of the work of the Department, observing at all times the requirements of courtesy, consideration, 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 other conduct prejudicial to the Government.

Subpart C-Conduct and Responsibilities of Special Government Employees

A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, 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 employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. For the purpose of this section, "inside information" means information obtained under Government authority which has not become part of the body of public information.

(b) Special Government employees may teach, lecture, or write in a manner consistent with the provisions of § 0.735203 (f).

§ 0.735-303 Coercion.

of

A special Government employee shall not use his Government employment to coerce, or give the appearance 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 connection 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.

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 Government. 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 disloyalty and striking (5 U.S.C. 118p, 118r).

(e) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(f) 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).

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C 640).

(h) The prohibition against the misuse of a Government vehicle (5 U.S.C. 78(c)).

(i) The prohibition against the misuse 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 mutilating or destroying a public record (18 U.S.C. 2071).

(m) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(n) The prohibitions against (1) embezzlement 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).

(0) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(p) The prohibition against proscribed political activities-The Hatch Act (5 U.S.C. 118i), and 18 U.S.C. 602, 603, 607, and 608.

Subpart E-Statements 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.

(c) 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 Commission Regulations (5 CFR Part 735). Such amendments are effective upon actual notification to the incumbents. The amended list shall be submitted 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 appropriate reviewing official in a supplementary statement at the end of the quarter in which the change occurs. Interim memoranda reports shall be filed if required to meet the prior approval provisions of 0.735-203 (c) and (d), or the requirements of § 0.735-205(a) concerning the timely reporting of real estate transactions. Financial interests or employment 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 required. However, for the purpose of annual review, a supplementary statement, 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 furnish all information required by an initial statement and by appropriate notation, shall indicate any changes in, or additions to the information set out in the employee's initial statement or last supplementary statement.

If any information required to be included on a statement or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf. § 0.735-504 Information prohibited.

This subpart does not require an employee to report information relating to his connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in an employee's statement. § 0.735-505

Review of statements.

(a) Employees reporting directly to the Secretary shall submit their statements directly to the Secretary for review; employees reporting directly to the Under Secretary shall submit their statements directly to the Under Secretary for review.

(b) Employees reporting directly to Assistant Secretaries shall submit their statements directly to the appropriate Assistant Secretary for review; employees reporting directly to the General Counsel shall submit their statements directly to the General Counsel for review.

(c) Employees not included in paragraph (a) or (b) of this section shall submit their statements directly to the appropriate Deputy Counselor.

(d) When a statement submitted under paragraph (b) or (c) of this section, or information from other sources, indicates 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 Secretary through the Counselor. The employee concerned shall be given an opportunity to explain the conflict appearance of conflict before any required remedial action is initiated.

or

After the review process has been completed, the statements submitted under $ 0.735-505 shall be promptly forwarded to the personnel office having custody of the employee's official personnel file. The statements shall be held in confidence and retained in limited access files. Information from a statement may not be disclosed except as the Secretary or his designee, or the Civil Service Commission may determine for good cause shown.

§ 0.735-507 Effect of employee's statements on other requirements.

The statements and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order, or regulation. 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 special Government employees.

(a) Except as provided in paragraph (c) of this section, each special Government employee shall submit to the reviewing official specified in § 0.735-505, Form HUD-844-A, Statement of Employment and Financial Interests, not later than the time of his employment. He shall keep his statement current throughout his employment with the Department by the submission of supplementary statements.

(b) The provisions of §§ 0.735-503, 0.735-504, 0.735-506, and 0.735-507 are applicable to a special Government employee who is required 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 duties of the position held by the special Government employee are of a nature and at such level of responsibility that the submission of a statement is not necessary to protect the integrity of the Government. For the purpose of this paragraph, “consultant" and "expert" have the meanings given those terms by Chapter 304 of the Federal Personnel Manual.

(d) The term "United States" means the States of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, the Canal Zone, and the territories and possessions of the United States, and the term "State" means any one of the foregoing.

(e) The term "Federal financial assistance" includes (1) grants, loans, and advances of Federal funds, (2) the grant or donation of Federal property and interests in property, (3) the detail of Federal personnel, (4) the sale and lease of, and the permission to use (on other than a casual or transient basis), Federal property or any interest in such property without consideration or at a nominal consideration, or at a consideration which is reduced for the purpose of assisting the recipient, or in recognition of the public interest to be served by such sale or lease to the recipient, and (5) any Federal agreement, arrangement, other contract which has as one of its purposes the provision of assistance. The term "Federal financial assistance" does not include a contract of insurance or guaranty.

or

(f) The term "recipient" means any State, political subdivision of any State, or instrumentality of any State or political subdivision, any public or private agency, institution, organization, or other entity, or any individual, in any State, to whom Federal financial assistance is extended, directly or through another recipient, for any program or activity, or who otherwise participates in carrying out such program or activity (such as a redeveloper in the Urban Renewal Program), including any successor, assign, or transferee thereof, but such term does not include any ultimate beneficiary under any such program or activity.

(g) The term "applicant" means one who submits an application, contract, request, or plan requiring Department approval as a condition to eligibility for Federal financial assistance, and the term "application" means such an application, contract, request, or plan.

§ 1.3 Application of Part 1.

This Part 1 applies to any program or activity for which Federal financial assistance is authorized under a law administered by the Department, including any program or activity assisted under the Department programs listed in Ap