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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. Recipient 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. Recipient 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 Recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 C.F.R. 135. Recipient will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the re- quirements of these regulations. 12. ENVIRONMENTAL CONDITIONS AND HISTORICAL PRESERVATION a. Air and Water 1. Recipient agrees to comply with the, following regulations insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C., 1857, et seq. ii. Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq. as amended 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. Exhibit E Page 7 of 10