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A, Property designed for residential use with seven (7) or less units, where the rehabilitation <br />work is funded by CDBG; and <br />B. Property designed for residential use with eleven (11) or less units, where the <br />rehabilitation work is funded by HOME Program. <br />10. USE OF DEBARRED. SUSPENDED OR INELIGIBLE CONTRACTORS, <br />Participant shall take provisions to ensure that contracts are not awarded to any contractor or <br />subcontractor during any period of debarment, suspension, or ineligibility status under the provisions of 24 <br />CFR Part 24. <br />11. SECTION 3. The parties to this Agreement acknowledge, consent and agree that; <br />A. The work to be performed under this contract is assisted by direct Federal financial <br />assistance from the Department of Housing and Urban Development and is subject to the <br />requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, <br />12 U.S.C. 1701u, Section 3 requires that to the greatest extent feasible, opportunities for <br />training and employment be given to Section 3 residents and businesses. A Section 3 <br />resident is defined as residents of public housing, or low-income residents whose income (or <br />a family whose income, adjusted for family size) does not exceed 50% of the median <br />income, or low-income residents whose income (or a family whose income, adjusted for <br />family size) does not exceed 80% of the median income. A Section 3 business is one that is <br />owned by Section 3 residents, or employs Section 3 residents in full-time positions, or <br />subcontracts with businesses which provide economic opportunities to low-income persons. <br />B. The parties to this Agreement 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. 135, and all applicable rules and orders of the Department issued <br />thereunder. The parties to this Agreement certify and agree that they are under no <br />contractual or other disability which would prevent them from complying with these <br />requirements. <br />C. Participant will send to each labor organization or representative of workers with which it has <br />a collective bargaining agreement or other contract or understanding, if any, a notice <br />advising the said labor organization or workers' representative of the commitments under the <br />Section 3 clause and shall post copies of the notice in conspicuous places available to <br />employees and applicants for employment or training. <br />D. Participant will include this Section 3 clause.in every subcontract for work in connection with <br />the project and will, at the direction of the applicant for or recipient of Federal financial <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. 135. Participant will not subcontract with any subcontractor where it <br />Fiscal Year 08-09 F-6 <br />