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5. DAVIS-BACON ACT AND LABOR STANDARDS. Contractor agrees to comply with <br />the requirements of the Davis Bacon Act as amended, the provision of Contract Work Hours, the <br />Safety Standards Act, the Copeland Anti -Kickback Act (40 U.S.C. 276,327-333) and all other <br />applicable Federal, State and local laws and regulations pertaining to labor standards insofar as <br />those acts apply to the performance of this agreement. <br />Contractor shall ensure that all contractors engaged in construction funded by the <br />Community Development Block Grant and the HOME Program compensate all laborers, <br />mechanics no less than minimum wage rates determined by the Department of Labor to be <br />prevailing for the classes of laborers and mechanics employed on such projects. The provisions of <br />this section apply to all construction projects in excess of $2,000 except the following: <br />a. Property designed for residential use with seven (7) or less units, where the <br />rehabilitation work is funded by CDBG; and <br />b. Property designed for residential use with eleven (11) or less units, where the <br />rehabilitation work is funded by HOME Program. <br />6. 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 <br />to the requirements of Section 3 of the Housing and Urban Development Act of <br />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 <br />low-income residents whose income (or a family whose income, adjusted for family <br />size) does not exceed 50% of the median income, or low-income residents whose <br />income (or a family whose income, adjusted for family size) does not exceed 80% <br />of the median income. A Section 3 business is one that is owned by Section 3 <br />residents; or employs Section 3 residents in full-time positions; or subcontracts with <br />businesses which provide economic opportunities to low-income persons. <br />Exhibit E Paue 5 of 7 <br />