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d,� <br />"D. The contractor will include this Section 3 clause in every subcontract for work in connection with <br />the project and will at the direction of the applicant for or recipient of Federal financial assis- <br />tance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is <br />in violation of regulations issued by HUD, 24 CFR, Part 135. The contractor will not subcontract <br />with any subcontractor where the contractor has notice or knowledge that the latter has been <br />found in violation of regulations under 24 CFR, Part 135, and will not let any subcontract unless <br />the subcontractor has first provided the contractor with a preliminary statement of ability to <br />comply with the requirements of these regulations. <br />"F. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR, Part 135, and <br />all applicable rules and orders of the Department issued thereunder prior to the execution of the <br />Agreement to Enter Into Housing Assistance Payments Contract, shall be a condition of the <br />Federal financial assistance provided to the project, binding upon the Owner, the Owner's <br />contractors, and subcontractors, successors, and assigns. Failure to fulfill these requirements <br />shall subject the Owner, the Owner's contractors, successors, and assigns to those sanctions <br />specified by the Agreement to Enter Into Housing Assistance Payments Contract, and to such <br />sanctions as are specified in 24 CFR, Section 135.135." <br />(e) The Owner agrees to be bound by the above Section 3 clause with respect to his or her own <br />employment practices when participating in federally assisted work. <br />2.2 EQUAL EMPLOYMENT OPPORTUNITY <br />(a) The Owner shall incorporate or cause to be incorporated into any contract in excess of $10,000 <br />cost for construction work, or modification thereof, as defined in the regulations of the Secretary <br />of Labor at 41 CFR, Chapter 60, which is to be performed pursuant to this Agreement, the <br />following Equal Opportunity clause: <br />"EQUAL EMPLOYMENT OPPORTUNITY" <br />"During the performance of this contract, the contractor agrees as follows: <br />"(1) The contractor will not discriminate against any employee or applicant for employment because <br />of race, color, creed, religion, sex, or national origin. The contractor will take affirmative action <br />to ensure that applicants are employed, and that employees are treated during employment, <br />without regard to their race, color, religion, creed, sex, or national origin. Such action shall <br />include, but not be limited to, the following: employment, upgrading, demotion, or transfer; <br />recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of <br />compensation; and selection for training, <br />Page 3 of 16 HUD- 52531 -B (12/88) <br />ref. Handbook 7420.8 <br />