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The Subrecipient agrees that, except with res ect to the rehabilitation or <br /> P <br /> construction of residential property designed for residential use for less than eight (8) <br /> households, all contractors engaged under contracts in excess of $ 2,000.00 for construction, <br /> renovation or repair of any building or work financed in whole or in part with assistance <br /> provided under this contract, shall comply with federal requirements adopted by the City <br /> pertaining to such contracts and with the applicable requirements of the regulations of the <br /> Department of Labor, under 29 CFR, Parts 3, l, 5 and 7 governing the payment of wages and <br /> ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those <br /> required under the regulations are imposed by state or local law, nothing hereunder is intended to <br /> relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The <br /> Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such <br /> regulations, provisions meeting the requirements of this paragraph, for such contracts in excess <br /> of$ 10,000.00. <br /> 4. "Section 3" Clause <br /> a. Cor�,pliance <br /> Compliance with the provisions of Section 3, the regulations set forth <br /> in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this <br /> contract, shall be a condition of the federal financial assistance provided under this contract and <br /> binding upon the City, the Subrecipient, and any sub-Subrecipients. Failure to fulfill these <br /> requirements shall subject the City, the Subrecipient, and any sub-Subrecipients, their successors <br /> and assigns, to those sanctions specified by the agreement through which federal assistance is <br /> provided. The Subrecipient certifies and agrees that no contractual or other disability exists <br /> which would prevent compliance with these requirements. <br /> The Subrecipient further agrees to comply with these "Section 3" <br /> requirements and to include the following language in all subcontracts executed under this <br /> Agreement: <br /> "The work to be performed under this contract is <br /> a project assisted under a program providing <br /> direct federal financial assistance from HUD and <br /> is subject to the requirements of Section 3 of <br /> the Housing and Urban Development Act of 1968, <br /> as amended, 12 U.S.C. 1701. Section 3 requires <br /> that to the greatest extent feasible, opportun- <br /> ities for training and employment be given to <br /> lower income residents of the project area and <br /> contracts for work in connection with the <br /> project be awarded to business concerns which <br /> are located in, or owned in substantial part <br /> by persons residing in the areas of the project." <br />