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SECTION 3 CLAUSE <br />A. The work to be performed under this contract is on a project assisted under a program <br />providing direct Federal financial assistance from the Department of Housing & Urban <br />Development and is subject to the requirements of Section 3 of the Housing & Urban <br />Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the <br />greatest extent feasible opportunities for training and employment be given lower income <br />residents of the project area and contracts for work in connection with the project be <br />awarded to business concerns which are located in, or owned in substantial part by persons <br />residing in the area of the project. <br />B. The parties to this contract will comply with the provisions of said Section 3 and the <br />regulations issued pursuant thereto by the Secretary of Housing & Urban Development set <br />forth in 24 C.F.R. Part 135, and all applicable rules and orders of the Department issued <br />thereunder prior to the execution of this contract. The parties to this contract certify and <br />agree that they are under no contractual or other disability which would prevent them from <br />complying with these requirements. <br />C. The contractor will send to each labor organization or representative of workers with <br />which it has a collective bargaining agreement or other contract or understanding, if any, a <br />notice of advising the said labor organization or workers' representative of its <br />commitments under this Section 3 clause and shall post copies of the notice inconspicuous <br />places available to employees and applicants for employment or training. <br />D. The contractor will include this Section 3 clause in every subcontract for work in <br />connection with the project and will, at the direction of the applicant for or recipient of <br />Federal financial assistance, take appropriate action pursuant to the subcontract upon a <br />finding that the subcontractor is in violation of regulations issued by the Secretary of <br />Housing & Urban Development, 24 C.F.R. Part 135. The contractor will not subcontract <br />with any subcontractor where it has notice or knowledge that the latter has been found in <br />violation of regulations under 24 C.F.R. Part 135 and will not let any subcontract unless <br />the subcontractor has first provided it with a preliminary statement of ability to comply <br />with the requirements of these regulations. <br />E. Compliance with the provisions of Section 3, the regulations set forth in 24 C.F.R. Part <br />135, and all applicable rules and orders of the Department issued thereunder prior to the <br />execution of the contract, shall be a condition of the Federal financial assistance provided <br />to the project, binding upon the applicant or recipient for such assistance, its successors, <br />and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its <br />contractors and subcontractors, its successors, and assigns to those sanctions specified by <br />the grant or loan agreement or contract through which Federal assistance is provided, and <br />to such sanctions as are specified by 24 C.F.R. Part 135. <br />ATTACHMENT A <br />Page 24 <br />