Secretary Martinez has made ethical conduct a top priority at the Department. As we enter the winter holiday season, both Secretary Martinez and Deputy Secretary Jackson want to reinforce the message that every HUD employee is accountable to the public, and that everyone must observe the highest standards of integrity. That's why it is in everyone's best interest to uphold both the spirit and the letter of the Standards of Ethical Conduct.

MEMORANDUM FOR: ALL EMPLOYEES

FROM: Richard A. Hauser, General Counsel, C

SUBJECT: Gift Policy Reminder

As we enter the holiday season, I would like to remind all employees of the rules contained in the government-wide Standards of Ethical Conduct that govern holiday gifts and parties. Secretary Martinez has made ethical conduct a top priority at HUD. Therefore, it is particularly important as we celebrate this holiday season to remember our accountability to the public and the high standard of integrity required of us as HUD employees. In this regard, please familiarize yourselves with the applicable ethical rules for attendance at parties and the acceptance of gifts. Contact the Ethics Law Division by e-mail or the Regional Counsel in your geographic area, if you have questions concerning the applicability of these rules.

I. Gifts from Outside Sources

Under the government-wide Standards of Ethical Conduct, "gifts" may include nearly anything of value. Food, drinks, gratuities, favors, hospitality, discounts, or entertainment are considered "gifts" subject to the regulation. The Standards of Ethical Conduct at 5 CFR § 2635.202 provides that:

• Employees may not directly or indirectly solicit or accept a gift given by any source because of the employee's official position; and
• Employees may not directly or indirectly solicit or accept a gift from a prohibited source.

As a result of Section 2635.202, the following principles guide the acceptance of gifts from prohibited sources. First, employees may not solicit gifts. Second, employees may not accept gifts offered because of their official Departmental positions regardless of the identity of the donor. Third, employees may not circumvent the rule by directing that the gift be given to family members or friends. Finally, employees may not accept gifts offered by prohibited sources. In this regard, please note that prohibited sources include persons doing or seeking to do business with HUD as well as anyone substantially affected by the performance or nonperformance of an employee's official duties.

There are several exceptions to the prohibition against the acceptance of gifts from prohibited sources. For example, gifts from relatives or friends (who may be prohibited sources) may be accepted if circumstances make it clear that the gift is motivated by a family relationship or personal friendship rather than the position of the employee. Likewise, unsolicited gifts that have a market value of $20 or less may be accepted under certain circumstances. Additionally, if you are invited to a holiday party or reception by a prohibited source, generally you may attend and accept food or refreshments of $20 or less if the event is a "widely attend gathering" and an agency ethics official has determined that your attendance is in the agency's interest. A widely attended gathering is an event where a large number of persons who represent a diversity of interest or views attend. Gifts of nominal value, such as greeting cards or cookies may also be accepted. Improper gifts that are perishable (food, flowers, or fruit) may be shared within the office, given to charity, or destroyed with the concurrence of the office supervisor or agency ethics official. The exceptions to the gift rule are described in greater detail in the Standards of Conduct regulation at 5 C.F.R § 2635.204. Should you receive a gift from a prohibited source, I urge you to contact staff in the Ethics Law Division or the appropriate Regional Counsel for your geographic area.

Finally, officials who are required to file financial disclosure reports (SF-278 or OGE-450) must report source and value of gifts aggregating $285 or more received from any one source during the reporting period.

II. Gifts Between Employees

The Standards of Ethical Conduct also restricts gifts between employees. The regulation provides that the following items may be shared among employees:

• Items other than cash, having a market value of $10 or less;
• Items such as food and refreshments shared in the office among several employees;
• Personal hospitality provided at a residence of a type customarily provided to friends;

It is impermissible to directly or indirectly give a gift to or make a donation toward a gift for an official supervisor if its value exceeds $10. In addition, gifts to co-workers who earn a higher salary are also limited to $10 in value. Gifts that exceed $10 must be based on a personal relationship and the co-worker cannot be a supervisor in your chain of authority.

During the holiday season, employees are still subject to the prohibition on asking for donations for a charity or other organizations on Government premises. Also remember that solicitations for food or other refreshments from outside or prohibited sources including contractors or grantees, are prohibited. You are also reminded that you should not disclose any Government information that is not readily available to the public at parties or other social occasions where employees of contractors or prohibited sources may be in attendance.