R98-04 ACCEPTING THE PROPOSAL AND AUTHORIZING AN AGREEMENT

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The contractor further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Agreement: "The work to be performed under this contract is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development ' Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible, opportunities for training and employment to be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in areas of the project." The contractor certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. The contractor will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the contractor is in violation of regulations issued by the Grantor Agency. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. The contractor shall not assign or transfer any interest in this contract without the prior written consent of the City thereto;provided,however,that claims for money due or to become due to the contractor from the City under this contract may be assigned to a bank,trust company, or other financial instiution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. The contractor shall undertake to insure that all subcontractors let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all contracts shall be forwarded to the City along with documentation concerning the selection process. If this contract results in any copyrightable material,the City and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce,publish or otherwise use and to authorize others to use the work for government purposes. The contractor agrees that funds provided under this contract will not be utilized for religious activities,to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570.200(j). d:�agree�DHA.wpd 5