Just as a doctor does not treat his own family, so a priest ordinarily does not hear confessions of those who are family or close personal friends. It’s not that he cannot do so; it is only that it can be imprudent to do so (except, of course, in cases of emergency when there is no other priest available). In your case though, it sounds to me that this priest is not so much a close personal friend as he is the pastor of a small community parish with which he is close to as its pastor. At a time completely separate from when you are seeking confession – so that the priest does not feel like he is turning away a penitent – I recommend that you ask this priest his preference. If he does not consider it a problem to hear your confession, then you are free to go to him for confession if you wish.