1060.03

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1-1. PURPOSE. This Handbook applies to programs

administered by the Office of Housing and supplements

Ethics Letter 91-5 and OMB\'s Interim Final Rule (See

Attachment I) of February 26, 1990 (55 FR 6736) and its

supplementing Notice 55 FR 24540 (See Attachment II) of

June 15, 1990 (see [24 CFR Part
87](http://www.gpoaccess.gov/cfr/index.html) for HUD\'s

restrictions on lobbying). These Directives require

compliance with the restrictions on lobbying called for

by Section 319 (referred to as the Byrd Amendment) of

Public Law 101-121. The Byrd Amendment prohibits all

applicants and recipients of Federal contracts, grants,

loans and cooperative agreements from using Federally

appropriated funds for lobbying; and it requires

disclosure of lobbying with other than Federally

appropriated funds by each person who receives or

requests financial assistance in the form of a

contract, grant, loan, cooperative agreement or

commitment for loan insurance or loan guaranty which

exceeds the minimum dollar thresholds.

1-2. APPLICABILITY. The Byrd amendment and the guidance in

this Handbook apply to applicants, recipients,

contractors and subcontractors of contracts, grants, or

cooperative agreements exceeding \$100,000 as well as

loans or commitments to insure a loan exceeding

\$150,000 as follows:

A. Multifamily Mortgage Insurance Programs. All

multifamily insurance, property management and

disposition programs pursuant to Title II of the

National Housing Act. (Property Disposition

contracting procurements are subject to Byrd

Amendment requirements, as implemented through the

Federal Acquisition Regulation (FAR).)

B. Assisted Housing Programs. Rent Supplement,

Section 236 (including non-insured Section 236)

and Flexible Subsidy, Rental Assistance Payments,

Section 8 (including Loan Management Set-aside,

Property Disposition Set-aside, State Agency

Set-aside, New Construction Set-aside for Section 515

Rural Rental Projects), Section 811, Special

Purpose Grants, Section 202.

C. Other Housing Programs. Section 106(b) loans,

Hope for Elderly Independence Program, Congregate

Housing Services Program and Housing Counseling

Program with single family mortgage insurance.

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1060.03

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D. FHA Exceptions. Section 319 of the 1993

Department of the Interior and Related Agencies

Appropriations Act changed the Byrd Amendment to

say that insured single family mortgages which do

not exceed \$150,000 or the single family mortgage

limit for affected programs, whichever is greater

are exempt from the Byrd requirements.

FHA-insured single family mortgages are exempt

from the Byrd Amendment reporting requirements,

and lenders and borrowers no longer have to

execute any of the certifications required by

[Mortgagee Letters
93-5](http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/) and
90-31 in connection

with FHA-insured single family mortgages.

1-3. REQUIRED REPORTING. The OMB regulations require a

certification that Federally appropriated funds are

not being or have not been used in violation of Section

319 and that disclosure will be made of payments for

lobbying with other than Federally appropriated funds.

This certification is to be submitted by applicants as

part of the application process for the \"covered

Federal actions\" described above. Civil penalties from

\$10,000 to \$100,000 can be assessed for noncompliance.

A. Standard certification information is included in

paragraph II A 2 of attached Ethics Letter
[91-5](http://www.hud.gov/offices/adm/hudclips/letters/el91-5.txt) .

B. Please note that the certification/statement and

disclosure form must be submitted with each

application, if required above. In addition, at

the end of each quarter, a disclosure form shall

be filed when an event requires disclosure or when

previously filed disclosure information is

inaccurate. It is up to the applicant to

determine whether it is to be submitted.

1-4. REQUIRED ACTION. Subcontractors and sub-recipients are

also subject to these requirements. They must submit

their certifications and disclosure forms prior to

subcontract execution or receipt of funds to the next

higher tier above them. All forms must be submitted up

from tier to tier until they are submitted to HUD.

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1060.03

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1-5. ONGOING FIELD OFFICE RESPONSIBILITIES

A. The Field Office must review each certification

which it receives and determine that it is

complete prior to the award of loan or grant funds

or the issuance of commitments to insure loans.

Each certification submitted to the Field Office

must be kept in the project or program file.

B. The Field Office shall send the original of any

disclosure forms ([Standard Form -
LLL](http://www.hud.gov/offices/adm/hudclips/forms/files/sflll.pdf))
received

directly and immediately to the Office of Ethics

in Headquarters and retain a copy in the

application, project or program file.

C. It must be emphasized that even if the loan or

grant amounts are not large enough to trigger the

certification and disclosure requirements, the

prohibitions against the use of Federally

appropriated funds for influencing or attempting

to influence the actions of Federal officials

apply. Accordingly, Field Office staff must be

alert to possible violations, which must be

reported to the Office of Ethics.

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