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Subrecipients, their successors and assigns, to those sanctions specified by the agreement through <br />which federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other <br />disability exists which would prevent compliance with these requirements. <br /> <br />The Subrecipient further agrees to comply with these "Section 3" requirements and to include the <br />following language in all subcontracts executed under this agreement: <br /> <br />The work to be performed under this Agreement is a project assisted under a program providing <br />direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing <br />and 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 Agreements 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 /> <br />The Subrecipient certifies and agrees that no contractual or other disability exists which would <br />prevent compliance with the requirements. <br /> <br /> (2) Notifications. The Subrecipient agrees to send to each labor organization <br />or representative of workers with which it has a collective bargaining agreement or other Agreement or <br />understanding, if any, a notice advising said labor organization or worker's representative of its <br />commitments under this Section 3 clause and shall post copies of the notice in conspicuous places <br />available to employees and applicants for employment or training. <br /> <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- <br />Subrecipient is in violation of Regulations issued by the grantor agency. The Subrecipient will not <br />subcontract with any sub-Subrecipient where it has notice of knowledge that the latter has been found in <br />violation of regulations under 24 CFR 135 and will not let any subcontract unless the sub-Subrecipient <br />has first provided it with a preliminary statement of ability to comply with the requirements of these <br />regulations. <br /> <br />2.6 Environmental Requirements. Lead Based Paint. In accordance with 24 CFR Part <br />570.608, the Subrecipient shall be prohibited from using lead-based paint in residential structures <br />rehabilitated with Community Development Block Grant funds. Lead-based paint is any paint containing <br />more than five-tenths of one percent (5/10 of 1%) lead by weight in the total non-volatile content of liquid <br />paints or in the dried film of paint already applied. <br /> <br /> 2.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and <br />diligence to perform their respective obligations under this Agreement. Both parties agree to act in good <br />faith to execute all instruments, prepare all documents, and take all actions as may be reasonably <br />necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be <br />responsible for the obligations of the other. <br /> <br />3.0 DISBURSEMENT OF FUNDS <br /> <br />3.1 Maximum Amount of CDBG Funds. The maximum amount of CDBG funds to be <br />provided to Subrecipient is $150,000 [one hundred fifty thousand dollars] in the form of a grant. <br />Subrecipient hereby acknowledges that the City cannot guarantee that the CDBG funds will be received <br />from HUD. The City's obligation to fund the work hereunder is limited to the availability of CDBG funds <br />from HUD. If the CDBG funds are not forthcoming from HUD for any reason, the City shall not have any <br />obligation to fund the work through any other source of funds. <br /> <br />3.2 Maximum Amount of General Funds. Not applicable. <br /> <br />3.3 Termination of Fund Obligation. The services to be provided under this Agreement <br />may be terminated without cause at any point in time in the sole and exclusive discretion of City. In this <br />event, City shall compensate the Subrecipient for all outstanding costs incurred for work satisfactorily <br />DocuSign Envelope ID: 95D25B34-6086-4A29-8612-90AA0E4C1962