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to business concerns which are located in, or owned in substantial part by, persons residing in <br />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 and Urban Development set <br />forth in 24 C.F.R. 235, and all applicable rules and orders of the Department issued <br />thereander 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 which <br />he/she 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/her coinmitments <br />under this Section 3 clause and shall post copies of the notice in conspicuous places available <br />to en_ployees and applicants for employment or training. <br />D. The Contractor will include this Section 3 clause in every subcontract for work in connection <br />with the project and will, at the direction of the applicant for or recipient of Federal fnancial <br />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, 24 C.F.R., Part 135. The Contractor will not subcontract with any <br />subcontractor where it has notice or knowledge that the latter has been found in violation of <br />regulations under 24 C.F.R. Part 135 and will not let any subcontract unless the subcontractor <br />has frst provided it with a preliminary statement of ability to comply with the requirements <br />of these regulations. <br />E. Compliance with the provisions of Section 3, the regulations set forth in 24 C.F.R. Part 135, <br />and ail applicable rules and orders of the Department issued hereunder prior to the execution <br />of the contract, shall be a condition of the Federal financial assistance provided to the project, <br />binding upon the applicant or recipient for such assistance, its successors and assigns. Pailure <br />to fulfill these requirements shall subject the applicant or recipient, its contractors and <br />subcontractors, its 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 sanctions as <br />are specified by 24 C.F.R. Part 135. <br />Section 503 Handicapped (if $2 500 or Over) Affirmative Action for Handicapped Workers <br />A. The C-ontractor will not discriminate against any employee or applicant for employment <br />because of physical or mental handicap in regard to any position for which the employee or <br />applicant for employment is qualified. The contractor agrees to take affirmative action to <br />employ, advance in employment and otherwise treat qualified handicapped individuals <br />without discrimination based upon their physical or mental handicap in all employment <br />practices such as the following: Employment, upgrading, demotion or transfer, recruitment, <br />