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PUBLIC DISCLOSURE OF CONFLICT OF INTEREST
UNDER THE CODE OF FEDERAL REGULATIONS
The federal regulations governing the administration of Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), and LEAD Program (LSL) grants for local governments have strict guidelines relating to Conflict of Interest. Under the federal regulations the following persons are covered:
The conflict of interest provisions of this section applies to any person who is an employee, agent, consultant, officer, elected official or appointed official of the participating jurisdiction or subrecipients that are receiving funds under this part. 24 CFR 92.356(c) and 24 CFR 570.611(c).
Under the regulations, a conflict exists as described below:
Conflicts Prohibited. The general rule is that no persons who exercise or have exercised any functions or responsibilities with respect to activities assisted with CDBG or HOME funds or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted or HOME-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted or HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. 24 CFR 92.356(b) and 24 CFR 570.611(b).
The regulations provide for an exception for persons who fall under the Conflict of Interest regulations.
Written request for an exception may be made to HUD after public notification that a person covered by the Conflict of Interest regulations has applied for assistance and the County Attorney has rendered an opinion that if HUD grants the exception, no state or local law will be violated. 24 CFR 570.611(d)(1) and 24 CFR 92.356 (d).
PUBLIC NOTICE is hereby provided on 7/18/2019 that Louisville Metro Develop Louisville Office of Housing Division request an exception to the regulation for the following applicant who is an immediate family member (by marriage) of an employee of The Office of Housing Division. Anita McGruder, the applicant, is the mother-in-law of Epiphany McGruder, Housing Program Coordinator in the Home Repair Program. Epiphany McGruder does not possess any decision-making authority and has recused herself from all involvement in any actions related to this application workflow, that may be perceived as intentional or unintended conflict. Ms. Anita McGruder is not an employee of Louisville Metro Government and meets all eligibility requirements for assistance under the Home Repair Program.
Employee: Epiphany McGruder, Housing Program Coordinator, Develop Louisville Office of Housing Division
Program: Home Repair Program (Community Development Block Grant)
Nature of the Conflict: Mother-in-law Anita McGruder has applied for and is eligible to receive Home Repair Assistance
Factors which were considered as part of this exception process include:
- Whether the person affected is a member of a group or class of low- or moderate-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interest or benefits as are being made available or provided to the group or class;
- Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision-making process with respect to the specific assisted activity in question
- Whether undue hardship will result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict.
- Ms. McGruder request for assistance was received and will be processed like any other applicant in the Home Repair Program. The applicant has not received any special or preferential treatment.
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