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It is understood that this agreement is funded in whole or in part with CDBG funds through the <br />Washington State CDBG Program as administered by COMMERCE and is subject to those <br />regulations and restrictions normally associated with federally-funded programs and any other <br />requirements that the state may prescribe. <br />5. PERFORMANCE MONITORING <br />The Local Government will monitor the performance of the Subrecipient by tracking project <br />progress, reviewing payment requests for applicable costs, managing the timely pass-through of <br />CDBG funds, overseeing compliance with CDBG requirements, and ensuring recordkeeping and <br />audit requirements are met. Substandard performance as determined by the Local Government <br />will constitute noncompliance with this Agreement. <br />If action to correct such substandard performance is not taken by the Subrecipient within a <br />reasonable period of time after being notified by the Local Government, contract suspension or <br />termination procedures will be initiated. <br />6. SPECIAL CONDITIONS <br />There are no Special Conditions <br />7. GENERAL CONDITIONS <br />A. General Compliance <br />The Subrecipient agrees to comply with: <br />• The requirements of Title 24 of the Code of Federal regulations, Part 570 (HUD <br />regulations concerning CDBG); and <br />• All other applicable Federal, state and local laws, regulations, and policies, governing <br />the funds provided under this Agreement. <br />B. CDBG National Objective <br />The Subrecipient certifies the activities carried out under this Agreement meet a CDBG <br />Program National Objective defined in 24 CFR 570.208. <br />C. Independent Contractor <br />Nothing contained in this Agreement is intended to, or will be construed in any manner, as <br />creating or establishing the relationship of employer/employee between the parties. The <br />Subrecipient will at all times remain an "independent contractor" with respect to the services <br />to be performed under this Agreement. The Local Government will be exempt from payment <br />of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and <br />Workers' Compensation Insurance, as the Subrecipient is an independent contractor. <br />D. Hold Harmless <br />The Subrecipient will hold harmless, defend and indemnify the Local Government from any <br />and all claims, actions, suits, charges and judgments whatsoever that arise out of the <br />Subrecipient's performance or nonperformance of the services or subject matter called for in <br />this Agreement. <br />Page 3 of lO