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The Subrecipient further agrees to comply with these "Section 3" requirements and to include the following <br />language in all subcontracts executed under this agreement: <br />The work to be performed under this contract is a project assisted under a program providing direct <br />federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and <br />Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest <br />extent feasible opportunities for training and employment be given to lower income residents of the project <br />area and contracts for work in connection with the project be awarded to business concerns which are <br />located in, or owned in substantial part by persons residing in the areas of the project.. <br />The. Subrecipient certifies and agrees that no contractual or other disability exists which would prevent <br />compliance with the requirements. <br />(2) Notifications. The Subrecipient agrees to send to each labor organization or <br />representative of workers with which it has a collective bargaining agreement or other contract or understanding, if <br />any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 <br />clause and shall post copies of the notice in conspicuous places available to employees and applicants for <br />employment or training. <br />(3) Subcontracts. The Subrecipient will include this Section 3 clause in every <br />subcontract and will take appropriate action pursuant to the subcontract upon a finding that the sub-Subrecipient is <br />in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any sub- <br />Subrecipient where it has notice of knowledge that the latter has been found in violation of regulations under 24 <br />CFR 135 and will not let any subcontract unless the sub-Subrecipient has first provided it with a preliminary <br />statement of ability to comply with the requirements of these regulations. <br />2.6 Environmental Requirements. Lead Based Paint. In accordance with 24 CFR Part 570.608, the <br />Subrecipient shall be prohibited from using lead-based paint in residential structures rehabilitated with Community <br />Development Block Grant funds. Lead-based paint is any paint containing more than five-tenths of one percent <br />(5/10 of 1 %) lead by weight in the total non-volatile content of liquid paints or in the dried film of paint already <br />applied. <br />2.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to <br />perform their respective obligations under this contract. Both parties agree to act in good faith to execute all <br />instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes <br />of this contract. Unless hereafter specified, neither party shall be responsible for the obligations of the other. <br />3.0 DISBURSEMENT OF FUNDS <br />3.1 Maximum Amount of CDBG Funds. The maximum amount of CDBG funds to be provided to <br />Subrecipient is $35,000 in the form of a grant. Subrecipient hereby acknowledges that the City cannot guarantee <br />that the CDBG funds will be received from HUD. The City's obligation to fund the work hereunder is limited to the <br />availability of CDBG funds from HUD. If the CDBG funds are not forthcoming from HUD for any reason, the City <br />shall not have any obligation to fund the work through any other source of funds. <br />3.2 Maximum Amount of General Funds. Not applicable. <br />3.3 Termination of Fund Obligation. The services to be provided under this Agreement may be <br />terminated without cause at any point in time in the sole and exclusive discretion of City. In this event, City shall <br />compensate the Subrecipient for all outstanding costs incurred for work satisfactorily completed as of the date of <br />written notice thereof. Subrecipient shall maintain adequate logs and timesheets in order to verify costs incurred to <br />date. <br />-4- <br />CDBG Agreement with DSFRC - <br />Basic Needs Program FY10-11 <br />