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County shall ensure that all contractors engaged in construction funded by the Community <br />Development Block Grant and the HOME Program compensate all laborers, mechanics no less <br />than minimum wage rates determined by the Department of Labor to be prevailing for the classes <br />of laborers and mechanics employed on such projects. The provisions of this section apply to all <br />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 />b. The parties to this agreement will comply with the provisions of said Section 3 and <br />the regulations issued pursuant thereto by the Secretary of Housing and Urban <br />Development set forth in 24 C.F.R. 135, and all applicable rules and orders of the <br />Department issued thereunder. The parties to this agreement certify and agree that <br />they are under no contractual or other disability which would prevent them from <br />complying with these requirements. <br />C. County will send to each labor organization or representative of workers with which <br />it has a collective bargaining Agreement or other contract or understanding, if any, a <br />notice advising the said labor organization or workers' representative of the commit- <br />ments under the Section 3 clause and shall post copies of the notice in conspicuous <br />places available to employees and applicants for employment or training. <br />d. County will include this Section 3 clause in every subcontract for work in <br />connection with the project and will, at the direction of the applicant for or County <br />of Federal financial assistance, take appropriate action pursuant to the subcontract <br />Exhibit E <br />Page 5 of 7 <br />