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12. "SECTION 3" COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT <br />AND BUSINESS OPPORTUNITIES. <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 <br />3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. <br />1701 u. Section 3 requires that to the greatest extent feasible opportunities for <br />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 <br />concerns, which are located in, or owned in substantial part by persons residing <br />in the area of the project. <br />B. The parties to this contract will comply with the provisions of said Section 3 and <br />the regulations issued pursuant thereto by the Secretary of Housing and Urban <br />Development set forth in 24 C.F.R. 135, and all applicable rules and orders of <br />the Department issued there under prior to the execution of this Contract. The <br />parties to this Contract certify and agree that they are under no contractual or <br />other disability, which would prevent them from complying with these <br />requirements. <br />C. The contractor will send to each labor organization or representative of workers <br />with which he/she has a collective bargaining agreement or other contract or <br />understanding, if any, a notice advising the said labor organization or workers' <br />representative of his/her commitments under this Section 3 clause and shall <br />post copies of the notice in conspicuous places available to employees and <br />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 <br />recipient of Federal financial assistance, take appropriate action pursuant to the <br />subcontract upon a finding that the subcontractor is in violation of regulations <br />issued by the Secretary of Housing and Urban Development, 24 C.F.R. Part <br />135. The contractor will not subcontract with any subcontractor where it has <br />notice or knowledge that the latter has been found in violation of regulations <br />under 24 C.F.R. Part 135 and will let any subcontract unless the subcontractor <br />has first provided it with a preliminary statement of ability to comply with <br />requirements of the regulations. <br />E. Compliance with the provisions of Section 3, the regulations set forth in 24 <br />C.F.R. Part 135, and all applicable rules and orders of the Department issued <br />hereunder prior to the execution of the contract, shall be a condition of the <br />federal financial assistance provided to the project, binding upon the applicant <br />or recipient for such assistance, it successors and assigns. Failure to fulfill these <br />requirements shall subject the applicant, its contractors and subcontractors, its <br />successors and assigns to those sanctions specified by the grant or loan <br />agreement or contract through which federal assistance is provided, and to such <br />sanctions as are specified by 24 C.F.R. Part 135. <br />13. INTEREST OF MEMBERS OF CLIENT. No member of the governing body of the <br />Client and no other officer, employee, or agent of the Client who exercises any <br />functions or responsibilities in connection with the planning and carrying out of the <br />