External monitor will not sleep using 2012 MacBook Air and HDMI adapter

I am running a HP 27xi (27" display) using the apple thunderbolt to HDMI adapter, and using a HDMI cable.
ISSUE:
I run my 2012 macbook air in "clamshell mode", and solely use the 27" display, which works great. Problem, is when the macbook goes to put the display to sleep, or sleep for the laptop, the display starts to go into power save mode, then flips back on... goes back into power save mode, repeats forever. I called HP, and they said the HDMI signal is not being turned off, hence why the screen keeps going ON, then power save, then repeat. If I shutdown the laptop, then the monitor goes off just fine.
Anyone else ran into an issue with an external monitor NOT going to sleep when plugged into the HDMI adapter? Someone suggusted that I purchase a DVI-D adapter, and use that cable... but that sounds ridiculous. The HDMI adapter should absolutely work.
My temporary fix is to turn off the monitor everytime (if i remember) otherwise the display is in this never ending loop of trying to shut down.
And yes, the Macbook Air is 100% up to date with updates. DRIVING ME CRAZY!!!
Joe

Hello Joe,
I definitely understand your concern regarding your external display not going to sleep and endlessly looping into power save mode when your MacBook Air is asleep. 
I found an article with steps to troubleshoot issues with displays.  This article is for internal and external displays, so you can skip any steps referring to the internal display.  The following steps specifically stands out to me for the situation you are experiencing:
Reset the system
You can reset the Mac's parameter RAM and SMC.
You can find the full article here:
Apple computers: Troubleshooting issues with video on internal or external displays
http://support.apple.com/kb/ht1573
Thank you for using Apple Support Communities.
Best,
Sheila M.

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