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<br />ARTICLE 10 <br />Subcontracts <br /> <br />10.1. Administrator shall only subcontract for performance of activities described in this Contract after <br />Administrator has submitted a Subcontractor Eligibility form, as specified by Department, for each such <br />proposed subcontract, and Administrator has obtained Department's prior written approval, based on the <br />information submitted, of Administrator's intent to enter into such proposed subcontract. Administrator, in <br />subcontracting for any activities described in this Contract, expressly understands that in entering into such <br />subcontracts, Department is in no way liable to Administrator's subcontractor(s). <br /> <br />10.2. In no event shall any provision of this Article 10, specifically the requirement that Administrator obtain <br />Department's prior written approval ofa subcontractor's eligibility, be construed as relieving Administrator of the <br />responsibility for ensuring that the performances rendered under all subcontracts are rendered so as to comply <br />with all of the terms of this Contract, as if such performances rendered were rendered by Administrator. <br />Department's approval under this Article 10 does not constitute adoption, ratification, or acceptance of <br />Administrator's or subcontractor's performance hereunder. Department maintains the right to insist upon <br />Administrator's full compliance with the terms of this Contract, and by the act of approval under this Article, <br />Department does not waive any right of action which may exist or which may subsequently accrue to Department <br />under this Contract. <br /> <br />10.3 Administrator shall comply with all applicable federal, state, and local laws, regulations, and ordinances <br />for making procurements under this Contract. Administrator shall ensure compliance with applicable provisions <br />under 24 C.r-.R. parts 84 or 85, and OMB Circulars referenced therein, in the procurement of property and <br />services. <br /> <br />ARTICLE 11 <br />Contlict Of Interest <br /> <br />No person who is: (I) an employee, agent, consultant, officer or elected or appointed official of the State of <br />Texas, or of any applicant that receives funds, and who exercises or has exercised any functions or <br />responsibilities with respect to activities assistcd with funds provided under this Contract; or (2) in a position to <br />participate in a decision making process, or gain inside inFormation with regard to such activities, may obtain a <br />personal or financial interest or benefit from a HOME assisted activity, or have an interest in any contract, <br />subcontract, or agreement (or the proceeds thereof) with respect to a HOME assisted activity either for <br />themselves or those with whom they have family or business ties, during their tenure or for one year thereafter; <br />or (3) in dispute with the Department regarding program compliance or administration of program funds under <br />federal or state programs, may be employed in any capacity by the Administrator or any subcontractor hired by <br />Administrator during the Contract term. Even the appearance of impropriety determined by the Department in its <br />sole discretion, related to any Department program must be avoided. <br /> <br />ARTICLE 12 <br />Nondiscrimination And Sectarian Activitv <br /> <br />12.1 Administrator shall ensure that no person shall, on the grounds of race, color, religion, sex, handicap, <br />familial status, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to <br />discrimination under, any program or activity Funded in whole or in part with funds provided under this Contract. <br />In addition, funds provided under this Contract must be made available in accordance with the requirements of <br />Section 3 of the Housing and Urban Development Act of 1968 at 12 U.S.C. 170 lu that: <br /> <br />A. to the greatest extent feasible, opportunities for training and employment arising in connection <br />with the planning and carrying out of any project assisted with HOME funds provided under this <br /> <br />..,~ <br /> <br />539076 <br />Page 5 or 17 <br />