Business with Excluded Parties

PURPOSE: This rule establishes the requirements for doing business with an excluded person in a Missouri Housing Development Commission covered transaction. (1) A non-excluded person may not enter into a covered transaction with an excluded person unless the Missouri Housing Development Commission (MHDC) grants an exception. (2) If a person is excluded while involved in an existing covered transaction, the nonexcluded person may complete the covered transaction already in existence with that person, but the covered transaction agreements with the excluded person may not be renewed or extended unless the MHDC grants an exception. (3) If a non-excluded person knowingly does business with an excluded person without first receiving an exception from MHDC, MHDC may disallow costs, annul or terminate the covered transaction, issue a stop work order, debar or suspend the person, or take other remedies as appropriate. Development Commission (4) When entering into a covered transaction with a participant, the primary participant must require that participant to— (A) Comply with the requirements of these regulations and all other regulations to which the subparticipant’s participation in a covered transaction are subject to as well as all applicable state and federal laws and commission policies; and (B) Pass the requirements to comply with these regulations to each person with whom the subparticipant enters into a contract at the next lower level in furtherance of work performed on a covered transaction. (5) An excluded person must, immediately upon written notice of their exclusion from MHDC, notify all parties in writing with whom they are currently participating in a covered transaction of MHDC’s decision to exclude them from such covered transactions. Failure to do so may result in permanent debarment from future covered transactions. AUTHORITY: section 215.030(5), (12), and (19), RSMo 2000.* Original rule filed Feb. 11, 2010, effective Aug. 30, 2010. *Original authority: 215.030, RSMo 1969, amended 1974, 1982, 1985, 1989, 1993, 1995, 1998.