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form HUD -52641 (6/2009) Previous editions are obsolete Page 7 of 12 ref Handbook 7420.8 the contract unit or the premises or with the Far Housing Act or other Federal equal implementation of the HAP contract. opportunity requirements. e. The HAP contract may not be assigned to a new owner 13. Conflict of Interest if the new owner (including a principal or other a. "Covered individual" nneins a person or entity who is a interested party) is the parent, child, grandparent, member of any of the following classes: grandchild, sister or bmther of any member of the (1) Any present or former member or officer of the family, unless the PHA has determined (and has PHA (except a PHA commissioner who is a notified the family of such determination) that participant in the program); approving the assignment, notwithstanding such (2) Any employee of the PHA, or any contractor, relationship, would provide reasonable accommodation sub- contractor or agent of the PHA, who for a family member who is a person with disabilities. formulates policy or who influences decisions £ The PHA may deny approval to assign the HAP with respect to the program; contract if the owner or proposed new owner (including (3) Any public official, member of a goveming body, (principal or other interested Party): ( i) Has violated obligations under a - housing or State or local legislator, who exercises assistance payments contrail under Section 8; assistance functions or responsibilities with respect to the program; or (2) Has committed fraud, bribery or any other (4) Any member of the Congress of the United corrupt or criminal act m connection with soy Federal housing program; b. States. A covered individual ,may not have any direct or (3) Has engaged m any drug related criminal activity or any violent criminal activity; indirect mterest in the HAP contract or in any benefits or payments under the contract (indudmg the interest (4) Has a history or practice of non - compliance with of an immediate family member of such covered the HQS for units leased under the Section 8 individual) while such person is a covered individual or tenam -based programs, or non - compliance with during one year thereafter. applicable housing standards for units leased with C. "Immediate family member" means the spouse, parent project-based Section 8 assistance or for units (including a stepparent), child (including a stepchild), leased under any other Federal housing program; gmdparent, grandchild, sister or brother (including a (5) Has a history or practice of Yarling to terminate stepsister or stepbrother) of any covered individual. tenancy of tenants assisted under any Federally d The owner certifies and is responsible for assuring that assisted housing program for activity eagaged in no person or entity has or will have a prohibited by the tenant, any member of the household, a interest, at execution of the HAP contract, or at any guest or another person under the control of any time during the HAP contract term member of the household that e. If a prohibited interest occurs, the owner shall promptly (a) 'threatens the right to peaceful enjoyment of and fully disclose such interest to the PHA and HUD. the premises by other residents; f. The conflict of interest prohibition under this section (b) Threatens the health or safety of other may be waived by the HUD field office for good cause. residents, of employees the PHA, of g. No member of or delegate to the Congress of the owner employees or other persons engaged m other g ge United States or resident commissioner shall be management of the housing admitted to any share or part of the HAP contract or to any benefits which may arise from it (c) Threatens the health or safety of; or the right to peaceful enjoyment of their residents by, 14. Assignment of the HAP Contract persons residing in the immediate vicinity of the n The owner may not assign the HAP contract to anew premises; or (d) Is drug-related criminal activity or violent owner without the prior written consent of the PHA. criminal activity; b. If the owner requests PHA consent to assign the HAP contract to a new owner, the owner shall supply any (6) Has a history air practice ofrenting units that fail to information as requirrd by the PHA pertinent to the meet State or local housing codes; or proposed assignment (7) Has not paid State or local real estate taxes, fines or c. The HAP contract may not be assigned to a new owner assessments that is debarred, suspended or subject to a limited g The new, owner must agree to be bound by and comply denial of participation under HUD regulations (see 24 with the HAP contract The agreement must be in Code of Federal Regulations Part 24). writing, and in a form acceptable to the PHA. The new d_ The HAP contract may not be assigned to a new owner owner must give the PHA a copy of the executed if HUD has prohibited such assignment because: agreement (1) The Federal government has instituted an administrative or judicial action against the owner or proposed new owner for violation ofthe 15. Foreclosure. In the case of any foreclosure, the immediate _ Far Housing Act or other Federal equal the foreclosure to the is interest a the property phe shall opportunity requirements, and such action is lest en the assume such interest shhlrjeil to the lease between the prior assume - pending; m owner and the tenant and to the HAP contract between the prior owner and the PHA for the occupied unit This provision does not (2) A court or administrative agency has determined affect any State or local law that provides longer time periods or that the owner or proposed new owner violated other additional protections for tenants. This provision will sunset on December 31, 2012 unless extended by law. form HUD -52641 (6/2009) Previous editions are obsolete Page 7 of 12 ref Handbook 7420.8