All Section 3 covered contracts shall include the following clause (referred
to as the Section 3 Clause)
A. The work to be performed under this contract is subject to the
requirements of Section 3 of the HUD Act of 1968, as amended (2 USC 1701u
(Section Three). The purpose of Section 3 is to ensure that employment and
other economic opportunities generated by HUD Assistance or HUD-assisted
projects covered by Section 3, shall, to the greatest extent feasible, be
directed to low- and very low-income persons, particularly persons who are
recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD
=s
regulations in 24 CFR part 135, which implement Section 3. As evidenced by
their execution of this contract, the parties to this contract certify that
they are under no contractual or other impediment that would prevent them
from complying with part 135 regulations.
C. The proposer agrees to send to each labor organization or
representative of workers with which the proposer has a collective
bargaining agreement or other understanding, if any, a notice advising the
labor organization or workers representative of the proposer
=s
commitments under this Section 3 clause, and will post copies of the notice
in conspicuous places at the work site where both employees and applicants
for training and employment positions can see the notice. The notice shall
describe the Section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the
person(s) taking applications for each of the positions; and the anticipated
date the work shall begin.
D. The proposer agrees to include this Section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part 135, and
agrees to take appropriate action, as provided in an applicable provision of
the subcontract in this Section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR Part 135. The
contractor will not subcontract with any subcontractor where the contractor
has notice or knowledge that the subcontractor has been found in violation
of the regulations in 24 CFR part 135.
E. The proposer will certify that any vacant employment positions,
including training positions, that are filled (1) after the proposer is
selected but before the contract is executed, and (2) with persons other
than those to whom the regulations of 24 CFR part 135 require employment
opportunities to be directed, were not filled to circumvent the proposer
=s
obligations under 24 CFR part 135.
F. Noncompliance with HUD
=s
regulations of 24 CFR part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted
contracts.
G. With respect to work performed in connection with Section 3 covered
Indian Housing assistance, Section 7(b) of the Indian Self-Determination and
Education Assistance Act (24 USC 450e) also applies to the work to be
performed under this contract . Section 7(b) requires that to the greatest
extent feasible (1) preference and opportunities for training and employment
shall be given to Indians, and (2) preference in the award of contracts and
subcontract shall be given to Indian organizations and Indian-owned Economic
Enterprises. Parties to this contract that are subject to the provisions of
Section 3 and Section 7(b) agree to comply with Section 3 to the maximum
extent feasible, but not in derogation of compliance with Section 7(b).
H. Pursuant to 24 CFR 905.170(b), compliance with Section 3 requirements
shall be to the maximum extent consistent with, but not in derogation of
compliance with section 7(b) of the Indian Self-Determination and Education
Assistance 25 USC Section 450e(b) when this law is applicable.