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