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shall not be used in payment of any bonus or commission to obtain HUD or City approval of the
<br />application for such assistance or for additional assistance, or any other approval or concurrence
<br />required under this Contract, Title I of the Housing and Community Development Act of 1974, as
<br />amended, or HUD regulations with respect thereto; provided, however, that reasonable fees or bona
<br />fide technical, consultant, managerial or other such services, rather than solicitation, are not
<br />prohibited if otherwise eligible as program costs.
<br />Prohibition Against Kickbacks. The Agency agrees to comply with the Copeland Anti -Kickback
<br />Act (18 U.S.C. 874) which prohibits kickbacks from public works employees.
<br />C. Conflict of Interest. In the procurement of supplies, equipment, construction, and services by the
<br />Agency:
<br />1. No member, officer, or employee of the City, or its designees or agents, no member of the
<br />governing body of the City of South Bend or the Agency (and no one with whom they have
<br />family or business ties) who exercises any functions or responsibilities with respect to the
<br />program during his or her tenure or for one year thereafter, shall have any financial benefit,
<br />direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be
<br />performed in connection with the program assisted under the Contract.
<br />2. The Agency agrees that it will incorporate into every written contract the following
<br />provision:
<br />INTEREST OF CONTRACTOR AND EMPLOYEES: The Contractor
<br />covenants that no person who presently exercises any functions or responsibilities
<br />in connection with the Community Development Program, and no one with whom
<br />they have family or business ties, has any personal financial benefit, direct or
<br />indirect in this Contract.
<br />In all other situations, no Covered Person who exercises or has exercised any functions or responsibilities
<br />with respect to CDBG activities assisted under this part, or who is in a position to participate in a decision
<br />making process or gain inside information with regard to such activities, may obtain a financial interest or
<br />benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract, or agreement
<br />with respect to a CDBG-assisted activity, or with respect to the proceeds of the CDBG-assisted activity,
<br />either for themselves or those with whom they have business or immediate family ties, during their tenure or
<br />for one year thereafter. For the UDAG program, the above restrictions shall apply to all activities that are a
<br />part of the UDAG project, and shall cover any such financial interest or benefit during, or at any time after,
<br />such person's tenure. A "Covered Person" is any person who is an employee, agent, consultant, officer, or
<br />elected official or appointed official of the recipient (the City), or of any designated public agencies, or of
<br />subrecipients (the Agency) that are receiving funds under this part.
<br />D. Political Activity Prohibited. None of the funds, materials, property or services provided directly
<br />or indirectly under this Contract shall be used for any candidate for public office or for political
<br />activities.
<br />E. Prohibition of Religious Discrimination and Assistance for Religious Activities and/o
<br />Organizations. Organizations that are religious or faith -based are eligible, on the same basis as any
<br />other organization, to participate in the CDBG program. An organization that participates in the
<br />CDBG program shall not, in providing program assistance, discriminate against a program
<br />beneficiary or prospective program beneficiary on the basis of religion or religious belief. None of
<br />the funds, materials, property or services provided under this Contract may be used to promote
<br />religious activities as set forth in 24 CFR 570.2000).
<br />F. Lobbying Prohibited. None of the funds provided under this Contract shall be used for publicity or
<br />propaganda purposes designed to defeat or support legislation pending before Congress.
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