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 prescribing standards of conduct for, and governing the submission of statements of employment and financial interests by its employees. All questions about, or requests for, interpretations should be directed to the Department Counselor or to a Deputy Counselor.

(a) "Department" means the Department of Housing and Urban Development.

(b) "Employee" means an employee of the Department, other than a Special Government employee.

(c) "Special Government employee" means a person who is retained, designated, appointed or employed by the Department to perform temporary duties, with or without compensation, for not more than 130 days during any period of 365 consecutive days, either on a full-time or intermittent basis, as defined in 18 U.S.C. 202.

(d) "Person" means an individual human being.

(e) "Business entity" means a corporation, company, firm, partnership, society, joint stock company, or any other organization or institution

having a business purpose including, but not limited to:

(1) Non-profit organizations or institutions which own or operate housing units, and

(2) Educational and other institutions doing research and development or related work involving grants or other types of financial assistance from, or contracts with, the Government.

§ 0.735-103 Notification to employees.

The provisions of this part shall be brought to the attention of, and made available to, each employee and special Government employee at the time of entrance on duty and at least annually thereafter. Each revision of this part shall be brought promptly to the attention of all employees and special Government employees.

§ 0.735-104 Interpretation and advisory service.

(a) Department Counselor. The General Counsel is the Standards of Conduct Counselor for the Department and shall serve as the Department's designee to the Office of Personnel Management on matters covered by this part. The Department Counselor shall be responsible for directing and coordinating the Department's activities under this part and assuring that adequate counseling is provided to prospective, present and former employees of the Department.

(b) Deputy Counselors. The Department's Deputy Standards of Conduct Counselors are the Associate General Counsel for Equal Opportunity and Administrative Law, the Assistant General Counsel for Administrative Law, all Regional Counsel, and any other employees designated by the Department Counselor. The Department Counselor and the Deputy Counselors shall provide authoritative advice to former, current and prospective Department employees who seek guidance on questions of conflicts of interest and on other matters covered by this part. In addition, the Inspector General is the Deputy Counselor for employees of the Office of Inspector General and will provide advice to former, current and prospective employees of that office.

$ 0.735-105 Disciplinary and other remedial actions.

(a) When an actual or apparent conflict of interest or other violation of this part is not resolved to the satisfaction of a Deputy Counselor, the matter shall be reported by the Deputy Counselor to the employee's supervisor; copies of the report shall also be provided to the Office of Personnel and Training and other concerned offices, such as the Office of the Inspector General, and the Office of the appropriate Assistant Secretary, Regional Administrator or other field office head.

(b) The employee's supervisor must consider the report of the Deputy Counselor, initiate appropriate remedial action, and inform the Deputy Counselor of the action taken. Remedial action may inlcude, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee of the conflicting interest within a reasonable time, but normally not more than 60 days after notice that a conflict exists;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

by this subpart, which might result in, or create the appearance of:

(a) Using public office or official title for private gain;

(b) Giving preferential treatment; (c) Impeding Government efficiency or economy;

(d) Losing independence or impartiality;

(e) Making a Government decision outside official channels;

(f) Adversely affecting the confidence of the public in the integrity of the Government;

(g) Discriminating against any other employee, or applicant for employment, on the ground of race, color, religion, national origin, sex, age, or handicap;

(h) Excluding any person from participating in, or denying to any person the benefits of, any program or activity administered by the Department on the ground of race, color, religion, sex, national origin, age, or handicap; or

(i) Knowingly participating in, or attending while on official business, any segregated meetings, or meetings held in segregated facilities, from which persons are excluded because of race, color, religion, national origin, sex, age or handicap.

(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 value, from a person, State government, local government or business entity, or a group of persons, State governments, local governments or business entities, who or which:

(1) Has, or is seeking, and contractual or other business or financial relationship with the Department;

(2) Conducts operations or activities that are regulated by the Department;

or

(3) Has interests, or whose members or clients have interests, that may be substantially affected by the actions of the Department.

(b) The prohibitions of paragraph (a) of this section do not apply:

(1) When the circumstances make it clear that family or personal relation

ships are the motivating factors for a gift, entertainment or favor;

(2) To acceptance of food and refreshments of nominal value on infrequent occasions in the course of a business meeting in which the employee is properly in attendance;

(3) To acceptance by an employee of loans from banks or other financial institutions on customary terms;

(4) To Acceptance by an employee of unsolicited advertising or promotional material, such as pens, pencils, plaques, note pads, calendars, and other items of nominal intrinsic value;

(5) To participation by an employee at a widely attended luncheon, dinner, conference, or similar gathering sponsored by a trade, technical, professional or other association or similar group for a discussion of matters related to the work of the Department. Participation must be approved in advance by the employee's supervisor as being in the interest of the Department. Acceptance of food and refreshments from a private company in connection with an association's activities is impermissible.

(6) To acceptance by the Department pursuant to 42 U.S.C. 3535(k) and under its policies governing official travel, of a donation of transportation, lodging or meals from a non-federal entity to permit an employee to attend a meeting or other event in an official duty status.

(c) An employee shall not solicit contributions 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 or herself (5 U.S.C. 7351). However, this paragraph does not prohibit voluntary gifts or donations of modest value made because of special circumstances such as marriage, illness or retirement.

(d) An employee shall not accept any gift, present, decoration or other item from a foreign government, except as authorized by the Foreign Gifts and Decorations Act (5 U.S.C. 7342).

(e) An employee may accept payment of travel, subsistence, and other expenses, incident to attendance at a meeting, from a charitable organization as defined in 26 U.S.C. 501(c)(3),