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Administrator shall include in any subcontracts that failure to adequately perform under this Contract may result in penalties up to and includino, Debarnzent from performing additional work for the Department. SECTION fl 1. COI>1FLICT OF INTERES'T A. Administrator shall ensure that no employee, agent, consultant, ofticer or elected or appointed official of Administrator, who exercises or has exercised any functions or responsibilities with respect to activities assisted with funds provided under this contract or who is in a position to participate in a decision making process, or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from a HOME assisted activity, or have an interest in any contract, subcontract, or agreement (or the proceeds thereof) with respect to a HOME assisted activity either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. B. Administrator shall ensure that no employee, officer, or agent of Administrator shall participate in the selection, or in the award or administration of a subcontract supported by funds provided hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of interest would arise when: 1) the employee, officer, or agent; 2) any member of his or her immediate family; 3) his or her partner; or 4) any organization which employs, or is about to employ any of the above, has a financial or other interest in the firm orerson selected to perform the subcontract Administrator shall comnlv wi.th 24 CFR §92.356 (exceptions can only be waived by HUD). C. No owner, developer or sponsor of HOME-assisted housing, including their officers, employees, agents, consultants ar elected or appointed officials may occupy a HOME- assisted unit in a development (with the exceptions of (1) an individual living in a HOME-assisted rental housing development where he/she is a project manager or a maintenance worker in that development and (2) an individual receiving HOME funds to acquire or rehabilitate his/her principal residence). D. None of the funds provided under this contract may be paid to an entity or organization that provides downpayment assistance if the activities of that entity or organization are financed in whole or in part, directly or indirectly, by contributions, service fees, or other payments from the sellers of housing, whether or not made in conjunction with the sale of specific housing acquired with funds provided under this contract. E. Administrator shall include the substance of this Section 11 in all of its subcontracts. SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTIVITIES A. Administrator shall ensttre that no person shall, on the grounds of race, color, religion, sex, handicap, familial status, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds provided under this contract. HOME Contract #1000930 ~ 000112 Page7of21