| (a) Applicability.
(1) The conflict of interest and procurement regulations
prescribed by HUD in 2 CFR Part 200 and 24 CFR Part 570 apply to all
agreements, contracts, subcontracts, awards, and subawards made under
the TxCDBG Program.
(2) In addition to the federal conflict of interest
and procurement regulations, state and local procurement and conflict
of interest laws apply.
(3) The conflict of interest restrictions and procurement
requirements identified in this section shall apply to a business,
utility provider, or other third party entity that benefits from or
receives any assistance, directly or indirectly, under a TxCDBG grant,
or that has any involvement in completing the project or meeting program
objectives.
(b) Conflicts prohibited. Grant recipients shall avoid,
neutralize or mitigate actual or potential conflicts of interest so
as to prevent an unfair competitive advantage or the existence of
conflicting roles that might impair the performance of a TxCDBG grant
or impact the integrity of the procurement process. Conflicts related
to the procurement of property or services are prohibited regardless
of any mitigating actions.
(c) Match requirements. A grant recipient's cash match
may not be obtained from any person or entity that provides contracted
professional or construction-related services (other than utility
providers) to implement the project.
(d) Administration and engineering services. Grant
recipients may not procure the same firm or consultant to provide
administration and engineering services.
(e) Conflicting laws. In the event of a conflict between
federal, state and local law, the more stringent provision shall control.
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