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Harris County Community Services Department <br /> Affordable Housing Project Design Standards <br /> <br />partner,oranorganizationwhichemploysorisabouttoemployanyofthepartiesindicated <br />herein,hasafinancialorotherinterestinthefirmselectedforanaward. <br />TheCDBGregulationsat24CFR570.611andHOMEregulationsat24CFR92.356providethat <br />nopersonwhoisanemployee,agent,consultant,officer,orelectedofficialorappointed <br />officialoftherecipientorsubrecipientthatarereceivingCDBGorHOMEfundsand(1)who <br />exercisesorhasexercisedanyfunctionsorresponsibilitieswithrespecttoactivitiesassisted <br />withCDBGfunds;or(2)whoisinapositiontoparticipateinadecisionmakingprocessorgain <br />insideinformationwithregardtotheseactivities,mayobtainafinancialinterestfromaCDBG <br />assistedorHOMEassistedactivity,orhaveanyinterestinanycontract,subcontract,or <br />agreementwithrespectthereto,ortheproceedsthereunder,eitherforthemselvesorthose <br />withwhomtheyhavefamilyorbusinessties,duringtheirtenureorforone(1)yearthereafter. <br />Identityofinterestmeansanyrelationship(generallybasedonfamilytiesorfinancialinterests) <br />between(a)thesellerandpurchase(prospectiveowner),(b)theownerand/orgeneral <br />contractorandthesubcontractor,materialsupplierorequipmentlessor,or(c)theownerand <br />thelender,whichcouldreasonablygiverisetoapresumptionthatthepartiestothe <br />transactionmayoperateincollusioninestablishingthepurchasepriceoftheproperty,thecost <br />oftherehabilitationwork,orthetermsofthefinancing.Examplesofidentityofinterest <br />relationshipsinclude: <br />Whentheowneroroneormoreoftheofficers,directors,stockholders,orpartnersofa <br />corporationorpartnershipowningorsellingthepropertyhasanyfamilytieorisan <br />officer,director,stockholderorpartnerofthegeneralcontractororlender,orhasany <br />financialinterestwhatsoeverinthegeneralcontractororlender. <br />Whenthesellerorgeneralcontractoradvancesanyfundstotheowner(purchaser)or <br />takesstockoranyinterestintheowner's(purchaser's)corporation,partnership,or <br />propertyaspayment. <br />Whenanyofthepartiesisinvolvedwithanotherinanenterprisewhollyseparatefrom <br />theproposedHOME/CDBGproject. <br />ConflictsofInterestandIdentityofInterestmustbedisclosedintherequestforproposals <br />applicationforHCCSDfunding. <br />1.12IntercreditorAgreement <br />Withinthirty(30)daysoftheexecutionofanAgreement,thesubrecipientshallsecurethe <br />execution,bytheSeniorLenderontheProject,ofanIntercreditorAgreementorDeclaration <br />whichataminimumshall:(1)requiretheSeniorLendertonotifyGranteeintheeventthe <br />SeniorLenderlearnsofadefaultundertheSeniorLoanfortheProject,and(2)requirethe <br />SeniorLendertogiveGranteewrittennoticeofandreasonableopportunitytocureanydefault <br />bysubrecipientundertheSeniorLoan(provided,however,Granteeshallhavenoobligationto <br />Harris County Community Services Department 11 <br />Affordable Housing Project Design Standards <br />Revised May 2011 <br /> <br />