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C9 1 <br />(c) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR, Part <br />135, and all applicable rules and orders issued by HUD thereunder prior to execution of <br />this Agreement, shall be a condition of the Federal financial assistance provided to the <br />project, binding upon the Owner, the Owner's contractors and subcontractors, successors, <br />and assigns. Failure to fulfill these requirements shall subject the Owner, the Owner's <br />contractors and subcontractors, successors, and assigns to the sanctions specified by this <br />Agreement, and to such sanctions as are specified by 24 CFR, Section 135.135. <br />(d) The Owner shall incorporate or cause to be incorporated into any contract or subcontract <br />for work pursuant to this Agreement in excess of $50,000 cost, the following clause: <br />"EMPLOYMENT OF PROJECT AREA RESIDENTS AND CONTRACTORS" <br />"A. The work to be performed under this Contract is on a project assisted under a program providing <br />direct Federal financial. assistance from HUD and is subject to the requirements of section 3 of <br />the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 <br />requires that, to the greatest extent feasible, opportunities for training and employment be given <br />to lower- income persons residing within the unit of local government or the nonmetropolitan area <br />(or nonmetropolitan county), as determined by the Secretary, in which the project is located and <br />contracts for work in connection with the project be awarded to business concerns which are <br />located in, or owned in substantial part by persons residing in, the same metropolitan area (or <br />nonmetropolitan county) as the project. <br />`B. The parties to this Contract will comply with the provisions of Section 3 and the regulations <br />issued by HUD as set forth in 24 CFR, Part 135, and all applicable rules and orders of HUD <br />issued thereunder prior to the execution of the Agreement. The parties to this Contract certify <br />and agree that they are under no contractual or other disability which would prevent them from <br />complying with these requirements. <br />"C. The contractor will send to each labor organization or representative of workers with which the <br />contractor has a collective bargaining agreement or other contract or understanding, if any, a <br />notice advising the labor organization or workers' representative of the commitments under this <br />Section 3 clause and shall post copies of the notice in conspicuous places available to employees <br />and applicants for employment or training. <br />Page 2 of 16 HUD - 52531 -B (12/88) <br />ref. Handbook 7420.8 <br />