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<br />ARTICLE 7 <br />Reporting Requirements <br /> <br />7.1. Administrator shall submit to Department such reports on the operation and performance of this <br />Contract as may be required by Department, including but not limited to, the reports specified in <br />this Article 7. Administrator shall provide Department with all reports necessary for <br />Department's compliance with 24 CFR 92.509 and 24 CFR Subpart L. <br /> <br />7.2. In addition to the limitations on liability otherwise specified in this Contract, it is expressly <br />understood and agreed by the Parties hereto that if Administrator fails to submit to Department in <br />a timely and satisfactory manner any report required by this Contract, Department may, at its <br />sole option and in its sole discretion, withhold any or all payments otherwise due or requested by <br />Administrator hereunder. If Department withholds such payments, it shall notify Administrator <br />in writing of its decision, the reasons for this action and the time period in which Administrator <br />must bring itself into compliance. Payments withheld pursuant to this paragraph may be held by <br />Department until such time as the delinquent obligations for which funds are withheld are <br />fulfilled by Administrator. If Administrator fails to perform as required within the stated cure <br />period, Department may terminate this Contract and Administrator hereby agrees and <br />acknowledges that upon termination, Administrator's rights to any funds shall be terminated. <br /> <br />ARTICLE 8 <br />Monitoring <br /> <br />The Department reserves the right, from time to time, to carry out field inspections to ensure compliance <br />with the requirements of this Contract. Administrator shall attend a compliance seminar, as scheduled <br />by the Department. After each monitoring visit, Department shall provide Administrator with a written <br />report of the mOllitor's findings. If the monitoring reports note deficiencies in Administrator's <br />performances under the terms of this Contract, the monitoring report shall include requirements for the <br />timely correction of such deficiencies by Administrator. Failure by Administrator to take the action <br />specified in the monitoring report may be cause for suspension or termination of this Contract, as <br />provided in Articles 16 and 17 of this Contract. <br /> <br />ARTICLE 9 <br />Independent Contractor <br /> <br />It is expressly understood and agreed by the Parties hereto that Department is contracting with <br />Administrator as an Independent Contractor, and that Administrator, as such, agrees to hold Department <br />harmless and to indemnify Department from and against any and all claims, demands, and causes of <br />action of every kind and character which may be asserted by any third party occurring or in any way <br />incident to, arising out of, or in connection with the services to be performed by Administrator under this <br />Contract. <br /> <br />ARTICLE 10 <br />Subcontracts <br /> <br />10.1. Except for subcontracts to which the federal labor standards requirements apply, Administrator <br />may not subcontract for performance of the activities described in this Contract without <br />obtaining Department's prior written approval. Administrator shall only subcontract for <br />performance of activities described in this Contract to which the federal labor standards <br />requirements apply, after Administrator has submitted a Subcontractor Eligibility form, as <br />specified by Department, for each such proposed subcontract, and Administrator has obtained <br /> <br />Page 4 of 17 <br />HOME Contract No. 535035 <br />Owner Occupied Assistance <br />