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16. PROHIBITIONS:
<br />A. Prohibition Against Payments of Bonus or Commission. The assistance provided under this Contract
<br />shall not be used in payment of any bonus or commission to obtain HUD or City approval of the application
<br />for such assistance or for additional assistance, or any other approval or concurrence required under this
<br />Contract, Title I of the Housing and Community Development Act of 1974, as amended, or HUD regulations
<br />with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial
<br />or other such services, rather than solicitation, are not prohibited if otherwise eligible as program costs.
<br />B. Prohibition Against Kickbacks, The Agency agrees to comply with the Copeland "Anti -Kickback" Act
<br />(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 governing
<br />body of the City of South Bend or the Agency (and no one with whom they have family or business
<br />ties) who exercises any functions or responsibilities with respect to the program during his or her
<br />tenure or for one year thereafter, shall have any financial benefit, direct or indirect, in any contract
<br />or subcontract, or the proceeds thereof, for work to be performed in connection with the program
<br />assisted under the Contract.
<br />2. The Agency agrees that it will incorporate into every written contract the following provision:
<br />"INTEREST OF CONTRACTOR AND EMPLOYEES: The Contractor covenants that no
<br />person who presently exercises any functions or responsibilities in connection with the
<br />Community Development Program, and no one with whom they have family or business
<br />ties, has any personal financial benefit, direct or indirect in this Contract."
<br />In all other situations, no Covered Person who exercises or has exercised any functions or
<br />responsibilities with respect to CDBG activities assisted under this part, or who is in a position to
<br />participate in a decision making process or gain inside information with regard to such activities,
<br />may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest
<br />in any contract, subcontract, or agreement with respect to a CDBG-assisted activity, or with respect
<br />to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they have
<br />business or immediate family ties, during their tenure or for one year thereafter. For the UDAG
<br />program, the above restrictions shall apply to all activities that are a part of the UDAG project, and
<br />shall cover any such financial interest or benefit during, or at any time after, such person's tenure.
<br />A "Covered Person" is any person who is an employee, agent, consultant, officer, or elected official
<br />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 or
<br />indirectly under this Contract shall be used for any candidate for public office or for political activities.
<br />E. Prohibition of Reli ions Discrimination and Assistance for Religious Activities and/or Or anizations.
<br />Organizations that are religious or faith -based are eligible, on the same basis as any other organization, to
<br />participate in the CDBG program. An organization that participates in the CDBG program shall not, in
<br />providing program assistance, discriminate against a program beneficiary or prospective program beneficiary
<br />on the basis of religion or religious belief. None of the funds, materials, property or services provided under
<br />this Contract may be used to promote 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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