(a) Every contract under the Homeless Housing and Assistance Program must contain a provision requiring that the property which is the subject of such contract continue to be used and operated for the purposes specified in the contract for a period of seven years commencing with the date of the department's written approval of occupancy of the homeless project, or such longer period of time as may be established in the contract. If the property ceases to be so used, or in the case of any other substantial violation of law, regulation or contract which is not corrected or remedied within 30 days, the commissioner may terminate the contract upon 30 days' written notice to the contracting organization. Upon such termination, the department may require the repayment to the department of any monies previously paid to the contracting organization pursuant to the terms of the contract.

(b) Every contract entered into pursuant to this Part shall specify the items of work to be performed, a time schedule for such work, a budget showing which items are to be funded under the contract(s), other work items necessary for the completion of the project and the sources of funds necessary to complete said additional work items.

(c) Contracts entered into pursuant to this Part must provide for ongoing supervision, review and evaluation of contract performance by the department. In order to permit such review and to enable the department to carry out its statutory duty to evaluate and report to the Governor and the Legislature on the Homeless Housing and Assistance Program, the contracting organization must provide such reports and information as the department may request and must permit access to the project facility by the department at all reasonable times.

(d) Without limiting the powers of the department under subdivision (c) of this section to require any other reports and information, each contractor shall furnish to the department in such form and detail as the department may prescribe:

(e) Every contract entered into pursuant to this Part shall require the contractor to maintain all funds received under the contract in a separate bank account subject to such controls and limitations as the contract shall specify.

(f) Contracts entered into pursuant to this Part may, as necessary, be modified to the extent consistent with applicable law and regulations.

(g) For projects licensed by a State agency, continued evidence of meeting licensing criteria will be required. Revocation of a license may result in termination of the contract. Where there is evidence of substantial violation of law, regulation or contract, the commissioner shall consult with the appropriate agency and shall take action with the advice and consent of said agency.

(h) Projects subject to state agency licensing shall operate in accordance with standards of the licensing agency, and nothing herein relieves a project of the burden of complying with all directives and standards of the certifying agency.

(i) Contracts may be terminated if the contractor's operation of a project facility has remained for a substantial period of time in substantial violation of the applicable laws and regulations of any appropriate licensing agency.

(j) Contracts may be terminated upon a finding by the department of substantial nonperformance or other breach of contractual obligations.

(k) When a municipality applying under this Part for state financial assistance proposes to contract with a not-for-profit corporation or charitable organization to undertake a homeless housing project, the municipality shall submit as part of its proposed operating plan the proposed subcontract agreement with said not-for-profit corporation or charitable organization. All such subcontract agreements shall be subject to the department's prior review and approval.