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4. "Section 3" Clause <br /> a. Compliance <br /> Compliance with the provisions of Section 3, the regulations set forth in 24 <br /> CFR 135, and all applicable rules and orders issued hereunder prior to the execution of <br /> this contract, shall be a condition of the federal financial assistance provided under this <br /> contract and binding upon the City, Heritage Inc., and any subcontractors. Failure to <br /> fulfill these requirements shall subject the City, Heritage Inc., and any subcontractors, <br /> their successors and assigns, to those sanctions specified by the agreement through which <br /> federal assistance is provided. Heritage Inc. certifies and agrees that no contractual or <br /> other disability exists which would prevent compliance with these requirements. <br /> Section 3 of the Housing and Urban Development Act of 1968, as amended,requires <br /> that to the greatest extent feasible, opportunities for training and employment be given to <br /> lower income residents of the project area and contracts for work in connection with the <br /> project be awarded to business concerns which are located in, or owned in substantial part <br /> by persons residing in the areas of the project. This Section applies to projects for which <br /> HUD's share of the cost exceeds $200,000. <br /> b. Subcontracts <br /> Heritage Inc. will include this Section 3 clause in every subcontract and will <br /> take appropriate action pursuant to the subcontract upon a finding that the subcontractor <br /> is in violation of regulations issued by the Grantor Agency. Heritage Inc. will not <br /> subcontract with any contractor where it has notice or knowledge that the latter has been <br /> found in violation of regulations under 24 CFR 135 and will not let subcontract unless the <br /> subcontractor has first provided it with a preliminary statement of ability to comply with <br /> the requirements of these regulations. <br /> G Conduct <br /> 1. Assignability <br /> Heritage Inc. shall not assign or transfer any interest in this contract without the <br /> prior written consent of the City thereto; provided, however,that claims for money due or <br /> to become due to Heritage Inc. from the City under this contract may be assigned to a <br /> bank, trust company, or other financial institution without such approval. Notice of any <br /> such assignment or transfer shall be furnished promptly to the City. <br /> 2. Hatch Act <br /> Heritage Inc. agrees that no funds provided, nor personnel employed under this <br /> contract, shall be in any way or to any extent engaged in the conduct of political activities <br /> in violation of Chapter 15 of Title V United States Code. <br /> 10 <br />