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Section 9.2 Subcontracts <br />A. RSP shall include language in any subcontract that failure of <br />subcontractor/consultant to adequately perform under the contract may result in penalties up to <br />and including debarment from performing additional work for the Department. <br />B. RSP shall only subcontract for performance of activities described in this Contract <br />after RSP has obtained the appropriate documentation verifying the subcontractor's eligibility, as <br />required by state of federal law or specified by Department, for each such proposed subcontract. <br />RSP, in subcontracting for any activities described in this Contract, expressly understands that in <br />entering into such subcontracts, Department is in no way liable to RSP's subcontractor(s). <br />C. In no event shall any provision of this section constitute adoption, ratification, or <br />acceptance of RSP's or subcontractor's performance hereunder. Department maintains the right <br />to insist upon RSP's full compliance with the terms of this Contract, and by the act of approval <br />under this section, Department does not waive any right of action which may exist or which may <br />subseyuently accrue to Department under this Contract. <br />Section 9.3 Contlict of Interest <br />A. RSP shall ensure that no employee, agent, consultant, officer or elected or <br />appointed official of RSP, who exercises or has exercised any functions or responsibilities with <br />respect to activities assisted with funds provided under this Contract or who is in a position to <br />participate in a decision making process, or gain inside information with regard to such activities, <br />may obtain a personal or financial interest or benefit from a HOME assisted activity, or have an <br />interest in any contract, subcontract, or agreement (or the proceeds thereo fl with respect to a <br />HOME assisted activity either for themselves or those with whom they have family or business <br />ties, during their tenure or for one year thereafter. <br />B. RSP shall ensure that no employee, officer, or agent of RSP shall participate in <br />the selection, or in the award or administration of a subcontract supported by funds provided <br />hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of interest <br />would arise when: 1) the employee, officer, or agent; 2) any member of his or her immediate <br />family; 3) his or her partner; or 4) any organization which employs, or is about to employ any of <br />the above, has a financial or other interest in the firm or person selected to perform the <br />subcontract. RSP shall comply with 24 C.F.R. §92.356 (exceptions can only made by HUD in <br />writing). <br />C. No owner, developer or sponsor of HOME-assisted housing, including their <br />officers, employees, agents, consultants or elected or appointed officials may occupy a HOME- <br />assisted unit in a development (with the exceptions of (1) an individual living in a HOME- <br />assisted rental housing development where he/she is a project manager or a maintenance worker <br />in that development and (2) an individual receiving HOME funds to acquire or rehabilitate <br />his/her principal residence). <br />17 of 25 zoio-oois <br />82 <br />