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same to City and shall, promptly and in any event within ten (10) Business Days after <br />written demand therefor, (a) pay and discharge the same, (b) effect the release thereof by <br />delivering to City a surety bond complying with the requirement of applicable laws for <br />such release, or (c) take such other action as City may reasonably require to release City <br />from any obligation or liability with respect to such stop notice or claim. <br />10.8 General Contractors who are Related Parties to the Developer. If the <br />Project is developed with general contractors who are Related Parties to the Developer, <br />the Developer must be audited to the subcontractor level by an outside auditing firm <br />approved by the City. The Developer shall pay for the audit to the subcontractor level by <br />an outside auditing firm. <br />10.9 Labor Standards. Developer shall comply with the provisions of 24 CFR <br />570.603 and related requirements. Developer shall include in all applicable construction <br />contracts the provisions of federal law imposing labor standards on federally assisted <br />contracts. Developer shall comply with the requirements of the Secretary of Labor in <br />accordance with the Davis -Bacon Act as amended (40 U.S.C. 3141 through 3148), the <br />provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq. and <br />implementing regulations), the Copeland Anti -Kick Back Act (40 U.S.C. 276c and 18 <br />U.S.C. 874 et seq.), the implementing regulations of the U.S. Department of Labor <br />including 29 CFR Parts 1, 3, 5, 6 and 7, and all other applicable Federal, state and local <br />laws and regulations pertaining to labor standards insofar as those acts apply to the <br />performance of the Agreement. Developer shall maintain documentation that demonstrates <br />compliance with these provisions and such documentation shall be made available to City <br />and HUD for review upon request. Developer shall cause or require to be inserted in full, <br />in all such contracts subject to such regulations, provisions meeting the requirements of <br />this paragraph. <br />10.10 HUD Form 4010. Developer shall comply and cause Developer personnel <br />to comply with the provisions of HUD Form 4010. HUD Form 4010 must be included in <br />the bid packet and construction contract and subcontracts for the Project. <br />11. FEDERAL (CDBG PROGRAM) COVENANTS <br />Developer shall comply with this Section during the CDBG Compliance Period. <br />11.1 Oualification as Affordable Housing. As more particularly provided in <br />the Affordability Restrictions on Transfer of Property, Developer shall use, manage and <br />operate the Property in accordance with the requirements of this Agreement so as to <br />qualify the housing on the Property as Affordable Housing with affordable rents. <br />11.2 Tenant and Participant Protection. Developer shall comply with the <br />requirements of 24 CFR 92.253. <br />11.3 Local Preference. Subject to compliance with the CDBG Regulations, the <br />HUD -Veterans Affairs Supportive Housing referral program requirements, the County of <br />Orange coordinated entry system and applicable California and federal fair housing laws, <br />local preference for Santa Ana residents and workers in tenant selection shall be a <br />20 <br />