Nonprofits must ensure that no conflicts of interest exist between their Boards of Directors, principal staff, or any other Entities that may participate in operating their Affordable Housing Programs (AHP).
It is a conflict of interest for a nonprofit to employ staff who also work for and receive financial benefits from an Entity that is providing the nonprofit with services related to the nonprofit's Affordable Housing Program Plan (AHPP).
Voting members of the nonprofit’s Board of Directors must serve in a voluntary capacity for any service they provide in implementing the nonprofit’s program and cannot receive compensation.
No person who is an employee, officer, or elected or appointed official of the nonprofit agency, or who is in a position to participate in a decision making process pursuant to the AHPP or gain inside information with regard to the lease or purchase of the Property pursuant to the AHPP, may obtain a personal or financial interest or benefit from the purchase of the Property, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves, or for those with whom they have family or business ties, during their tenure, or for one year thereafter.
For additional information see Handbook 4000.1 I.B.4.b.iii(A)-(B) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
The FHA-approved Nonprofits web page is available at https://www.hud.gov/program_offices/housing/sfh/np