(a) Periodic review of contract performance.

1. (1) The division shall monitor and review, at periodic intervals, the performance of the qualified applicant under its respective contract(s) with the division. The qualified applicant shall provide program reports to facilitate the evaluation process and other such reports that the division may request from time to time.

2. (2) Should the commissioner find that there has been substantial nonperformance or other breach of the performance contract for reasons other than those over which the applicant can exercise no effective control, the commissioner shall have the right to terminate or modify the contract. Immediately upon such notice of termination, the group is to return all expended funds to the division.

   (b) Conflict of interest.

3. (1) The following are restricted from holding voting board membership, serving as officers of the applicant and/or staff management positions, except where otherwise required by statute:

   1. (i) State legislators and members of their staffs who hold policymaking positions;
   2. (ii) commissioners and chairpersons of State departments and their deputies and assistants (including members or directors of public authorities, public benefit corporations, boards, commissions and councils);
   3. (iii) staff of the Division of Housing and Community Renewal;
   4. (iv) statewide elected officials, including the Governor, Lieutenant Governor, Attorney General and Comptroller, and members of their staffs who hold policy-making positions;
   5. (v) chief executive officials and members of the legislative bodies of counties having a population of 275,000 or more, within which the project is located, or cities, towns and villages having a population of 20,000 or more, within the county in which the project is located, except where board membership for such persons is mandated by other relevant Federal or State statutes; and
   6. (vi) political party chairpersons, party organization leaders and members of their executive committees in the State, counties having a population of 275,000 or more, within which the project is located, or cities, towns and villages having a population of 20,000 or more, within the county in which the project is located.

4. (2) The following shall not receive any compensation whatsoever from a recipient organization, directly or indirectly, for services or goods rendered to such organization unless the goods or services are provided pursuant to an award or contract let, unless otherwise required, after a good faith effort to obtain competitive prices is made, the results of which were reported in writing prior to the award of the contract and were approved by the Division of Housing and Community Renewal, which approval shall be based on comparison to arm's length transactions and the needs of the project:

   1. (i) State legislators and members of their staffs who hold policymaking positions;
   2. (ii) commissioners and chairpersons of State departments and their deputies and assistants (including members or directors of public authorities, public benefit corporations, boards, commissions and councils);
   3. (iii) staff of the Division of Housing and Community Renewal;
   4. (iv) statewide elected officials, including the Governor, Lieutenant Governor, Attorney General and Comptroller, and members of their staffs who hold policymaking positions;
   5. (v) chief executive officials and members of the legislative bodies of counties, cities, towns and villages in which county the project is located;
   6. (vi) political party chairpersons, party organization leaders and members of their executive committees in the State, counties, cities, towns and villages in which county the project is located;
   7. (vii) voting board members and officers, except for salary payments of officers which shall require the approval of the commissioner, which approval shall be granted if the duties assigned to the officer correspond to duties normally assigned to an executive director;
   8. (viii) staff members of the recipient organization, except for salary payments;
   9. (ix) the immediate families of persons in subparagraphs (i)-(viii) of this paragraph; and
   10. (x) any firm, association, corporation or partnership in which any individual listed in paragraph (1) or (2) of this subdivision holds an interest of 10 percent or more.
5. (3) These provisions apply to all persons and entities whether or not their involvement with, or compensation from, a recipient organization is related to the project funded pursuant to this program.