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VII. HUD SECTION 3 COMPLIANCE <br /> A. The work to be performed under this contract is on a project assisted under a <br /> program providing direct Federal financial assistance from the Department of <br /> Housing and Urban Development and is subject to the requirements of Section 3 of <br /> the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 170. <br /> Section 3 requires that to the greatest extent feasible opportunities for training and <br /> employment be given lower income residents of the project area and contracts for <br /> work in connection with the project be awarded to business concerns which are <br /> located in, or owned in substantial part by persons residing in the area of the <br /> 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 and Urban <br /> Development set forth in 24 CFR Part 135, and all applicable rules and orders of the <br /> Department issued thereunder prior to the execution of this contract. The parties to <br /> this contract certify and agree that they are under no contractual or other disability <br /> which would prevent them from complying with these requirements. <br /> C. The contractor will send to each labor organization or representative of workers with <br /> which he has a collective bargaining agreement or other contract or understanding, <br /> if any, a notice advising the said labor organization or workers' representative of his <br /> commitments under this Section 3 clause and shall post copies of the notice in <br /> conspicuous places available to employees and applicants for employment or <br /> 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 <br /> of Federal financial assistance, take appropriate action pursuant to the subcontract <br /> upon a finding that the subcontractor is in violation of regulations issued by the <br /> Section of Housing and Urban Development, 24 CFR Part 135. The contractor will <br /> not subcontract with any subcontractor where it has notice or knowledge that the <br /> latter has been found in violation of regulations under 24 CFR Part 135 and will not <br /> let any subcontract unless the subcontractor has first provided it with a preliminary <br /> statement of ability to comply with the requirements of these regulations. <br /> E. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part <br /> 135, and all applicable rules and orders of the Department issued thereunder prior <br /> to the execution of the contract, shall be a condition of the Federal financial <br /> assistance provided to the project, binding upon the applicant or recipient for such <br /> assistance, its successors, and assigns. Failure fo fulfill these requirements shall <br /> subject the applicant or recipient, its contractors and subcontractors, its successors, <br /> and assigns to those sanctions specified by the grant or loan agreement or contract <br /> through which Federal assistance is provided and to such sanctions as are specified <br /> by 24 CFR Part 135. <br /> AGREEMENT 00520-4 <br />