R97-118 AUTHORIZING EXPENDITURE OF FUNDS AND SUBRECIPIENT AGREEMENTS

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4. "Section 3" Clause a. Compliance II' Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the federal financial assistance provided under this contract and binding upon the City, the Subrecipient, and any sub-Subrecipients. Failure to fulfill these requirements shall subject the City, the Subrecipient, and any sub-Subrecipients, their successors and assigns, to those sanctions specified by the agreement through which federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The Subrecipient 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, opportun- ities for training and employment 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 the areas of the project." The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subSubrecipient is in violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract with any subSubrecipient 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 subSubrecipient has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.