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11. SECTION 3. The parties to this Agreement acknowledge, consent and agree <br /> that: <br /> a. The work to be performed under this contract is assisted by direct Federal <br /> financial assistance from the Department of Housing and Urban Development and is <br /> subject to the requirements of Section 3 of the Housing and Urban Development Act <br /> of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent <br /> feasible, opportunities for training and employment be given to Section 3 residents <br /> and businesses. A Section 3 resident is defined as residents of public housing, or low- <br /> income residents whose income (or a family whose income, adjusted for family size) <br /> does not exceed 50% of the median income, or low-income residents whose income <br /> (or a family whose income, adjusted for family size) does not exceed 80% of the <br /> median income. A Section 3 business is one that is owned by Section 3 residents; or <br /> employs Section 3 residents in full-time positions; or subcontracts with businesses <br /> which provide economic opportunities to low-income persons. <br /> b. The parties to this agreement will comply with theirovisions of said <br /> Section 3 and the regulations issued pursuant thereto by the Secretary of Housing <br /> and Urban Development set forth in 24 C.F.R. 135, and all applicable rules and <br /> orders of the Department issued thereunder. The parties to this agreement certify <br /> and agree that they are under no contractual or other disability which would prevent <br /> them from complying with these requirements. <br /> c. Recipient will send to each labor organization or representative of workers <br /> with which it has a collective bargaining Agreement or other contract or <br /> understanding, if any, a notice advising the said labor organization or workers' <br /> representative of the commitments under the Section 3 clause and shall post copies of <br /> the notice in conspicuous places available to employees and applicants for <br /> employment or training. <br /> d. Recipient will include this Section 3 clause in every subcontract for work in <br /> connection with the project and will, at the direction of the applicant for or Recipient <br /> of Federal financial assistance, take appropriate action pursuant to the subcontract <br /> upon a finding that the subrecipient is in violation of regulations issued by the <br /> Secretary of Housing and Urban Development, 24 C.F.R. 135. Recipient will not <br /> subcontract with any subrecipient where it has notice or knowledge that the latter has <br /> been found in violation of regulations under 24 C.F.R. 135 and will not let any <br /> subcontract unless the subrecipient has first provided it with a preliminary statement <br /> of ability to comply with the re-quirements of these regulations. <br /> 7 <br />