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Section 3 is to ensure that employment and other economic opportunities generated by HUD <br />assistance or HUD -assisted projects covered by Section 3, shall, to the greatest extent feasible, <br />be directed to low- and very low-income persons, particularly persons who are recipients of <br />HUD assistance for housing. Accordingly, Section 3 requires that to the greatest extent feasible <br />opportunities for training and employment be given lower income residents of the project area <br />and contracts for work in connection with the project be awarded to business concerns which <br />are located in or owned in substantial part by persons residing in the area of the project. <br />B. The parties to this Contract will comply with the provisions of Section 3 and the regulations <br />issued pursuant thereto by the Secretary of Housing and Urban Development set forth in Title <br />24, Code of Federal Regulations (24 CFR), and all applicable rules and orders of the <br />Department issued there under prior to the execution of this Contract. The parties to this <br />Contract certify and agree that they are under no contractual or other disability which would <br />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 if any, a <br />notice advising the said labor organization or workers' representative of his commitments under <br />this Section 3 Clause and shall post copies of the notice in conspicuous places available to <br />employees and applicants for employment or training. The notice shall describe Section 3 <br />preference, shall set forth minimum number and job titles subject to hire, availability of <br />apprenticeship and training positions, the qualifications for each; the name and location of the <br />person(s) taking applications for each of the positions; and the anticipated date the work shall <br />begin. <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 Federal <br />financial assistance, take appropriate action pursuant to the subcontract upon a finding that the <br />subcontractor is in violation of regulations issued by the Secretary of Housing and Urban <br />Development under 24 CFR. The Contractor will not subcontract with any subcontractor where <br />it has notice or knowledge that the latter has been found in violation of regulations under 24 <br />CFR and will not let any subcontract unless the subcontractor has first provided it with a <br />preliminary statement of ability to comply with the requirements of these regulations. <br />E. The Contractor will certify that any vacant employment positions, including training <br />positions, that are filled (1) after the Contractor is selected but before the contract is executed, <br />and (2) with persons other than those to whom the regulations of 24 CFR require employment <br />opportunities to be directed, were not filled to circumvent the Contractor's obligations under <br />24 CFR. <br />F. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR, and all <br />applicable rules and orders of the Department issued thereunder prior to execution of this <br />contract, shall be a condition of the Federal financial assistance provided to the project, binding <br />upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill <br />these requirements shall subject the applicant or recipient, its contractors and subcontractors, <br />its successors, and assigns to those sanctions specified by the grant or loan agreement or <br />contract through which Federal assistance is provided, and to such sanctions as are specified <br />by 24 CFR, which may include termination of this Contract for default and debarment or <br />suspension from future HUD assisted contracts." <br />The contracts shall also include additional language from Section 3 and from 25 U.S.0 450e to the <br />extent work performed in connection with Section 3 covers Indian housing assistance. <br />CDBG Program Contract Page 7 <br />