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n Contractor shall ensure that all contractors engaged in construction funded by the Community Development Block Grant and the HOME Program compensate all laborers, mechanics no less than minimum wage rates determined by the Department of Labor to be prevailing for the classes of laborers and mechanics employed on such projects. The provisions of this section apply to all construction projects in excess of $2,000 except the following: a. Property designed for residential use with seven (7) or less units, where the rehabilitation work is funded by CDBG; and b. Property designed for residential use with eleven (11) or less units, where the rehabilitation work is funded by HOME Program. 6. SECTION 3. The parties to this Agreement acknowledge, consent and agree that: a. The work to be performed under this contract is assisted by direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given to Section 3 residents and businesses. A Section 3 resident is defined as residents of public housing, or low-income residents whose income (or a family whose income, adjusted for family size) does not exceed 50% of the median income, or low-income residents whose income (or a family whose income, adjusted for family size) does not exceed 80% of the median income. A Section 3 business is one that is owned by Section 3 residents; or employs Section 3 residents in full-time positions; or subcontracts with businesses which provide economic opportunities to low-income persons. b. The parties to this agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 C.F.R. 135, and all applicable rules and orders of the Department issued thereunder. The parties to this agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. C. Contractor will send to each labor organization or representative of workers with which it has a collective bargaining Agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of the commitments under the Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. d. Contractor will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or Contractor of Federal financial assistance, take appropriate action pursuant to the Exhibit E Page 5 of 7