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Section 3 Clause <br />All section 3 covered contracts shall include the following clause <br />(referred to as the section 3 clause): <br />A. The work to be performed under this contract is subject to the <br />requirements of section 3 of the Housing and Urban Development Act of 1968, <br />as amended, 12 U.S.C. 170lu (section 3). The purpose of section 3 is to <br />ensure that employment and other economic opportunities generated by HUD <br />assistance or HUD-assisted projects covered by section 3, shall, to the <br />greatest extent feasible, be directed to low- and very low-income persons, <br />particularly persons who are recipients of HUD assistance for housing. <br />B. The parties to this contract agree to comply with HUD's regulations in <br />29 CFR part 135, which implement section 3. As evidenced by their execution <br />of this contract, the parties to this contract certify that they are under no <br />contractual or other impediment that would prevent them from complying with <br />the part 135 regulations. <br />C. The contractor agrees to send to each labor organization or. <br />representative of workers with which the contractor has a collective <br />bargaining agreement or other understanding, if any, a notice advising the <br />labor organization or workers' representative of the contractor's commitments <br />under this section 3 clause, and will post copies of the notice in <br />conspicuous places at the work site where both employees and applicants for <br />training and employment positions can see the notice. The notice shall <br />describe the section 3 preference, shall set forth minimum number and job <br />titles subject to hire, availability of apprenticeship and training <br />positions, the qualifications for each; and the name and location of the <br />person(s) taking applications for each of the positions; and the anticipated <br />date the work shall begin. <br />D. The contractor agrees to include this section 3 clause in every <br />subcontract subject to compliance with regulations in 29 CFR part 135, and <br />agrees to take appropriate action, as provided in an applicable provision of <br />the subcontract or in this section 3 clause, upon a finding that the <br />subcontractor is in violation of the regulations in 29 CFR part 135. The <br />contractor will not subcontract with any subcontractor where the contractor <br />has notice or knowledge that the subcontractor has been found in violation of <br />the regulations in 24 CFR part 135. <br />E. The contractor will certify that any vacant employment positions, <br />including training positions, that are filled (1) after the contractor is <br />selected but before the contract is executed, and (2) with persons other than <br />those to whom the regulations of 29 CFR part 135 require employment <br />opportunities to be directed, were not filled to circumvent the contractor's <br />obligations under 29 CFR part 135. <br />F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in <br />sanctions, termination of this contract for default, and debarment or <br />suspension from future HUD assisted contracts. <br />G. With respect to work performed in connection with section 3 covered <br />Indian housing assistance, section 7(b) of the Indian Self-Determination and <br />Education Assistance Act (25 U.S.C. 450e) also applies to the work to be <br />performed under this contract. Section 7(b) requires that to the greatest <br />extent feasible (i) preference and opportunities for training and employment <br />shall be given to Indians, and (ii) preference in the award of contracts and <br />subcontracts shall be given to Indian organizations and Indian-owned Economic <br />Enterprises. Parties to this contract that are subject to the provisions of <br />section 3 and section 7(b) agree to comply with section 3 to the maximum <br />extent feasible, but not in derogation of compliance with section 7(b). <br />Exhibit E