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The Subrecipient agrees that, except with respect to the rehabilitation or construction of <br />residential property containing less than eight (8) units, all contractors engaged under <br />contracts in excess of $2,000.00 for construction, renovation or repair work financed in <br />whole or in part with assistance provided under this contract, shall comply with Federal <br />requirements adopted by the City pertaining to such contracts and with the applicable <br />requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 <br />and 7 governing the payment of wages and ratio of apprentices and trainees to journey <br />workers; provided that, if wage rates higher than those required under the regulations <br />are imposed by state or local law, nothing hereunder is intended to relieve the <br />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 <br />such regulations, provisions meeting the requirements of this paragraph. <br />3. "Section 3" Clause <br />Provisions are applicable to covered projects for which the amount of HUD assistance <br />exceeds $200,000 and /or the contract or subcontract exceeds $100,000. <br />a. Compliance <br />Compliance with the provisions of Section 3 of the HUD Act of 1968, as <br />amended, and as implemented by the regulations set forth in 24 CFR 135, and <br />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 <br />this contract and binding upon the City, the Subrecipient and any of the <br />Subrecipient's subrecipients and subcontractors. Failure to fulfill these <br />requirements shall subject the City, the Subrecipient and any of the <br />Subrecipient's subrecipients and subcontractors, their successors and assigns, <br />to those sanctions specified by the Agreement through which Federal assistance <br />is provided. The Subrecipient certifies and agrees that no contractual or other <br />disability exists that would prevent compliance with these requirements. <br />The Subrecipient further agrees to comply with these "Section 3" requirements <br />and to include the following language in all subcontracts executed under this <br />Agreement: <br />"The work to be performed under this Agreement is a project <br />assisted under a program providing direct Federal financial <br />assistance from HUD and is subject to the requirements of <br />Section 3 of the Housing and Urban Development Act of 1968, as <br />amended (12 U.S.C. 1701). Section 3 requires that to the <br />greatest extent feasible opportunities for training and employment <br />be given to low- and very low- income residents of the project <br />area, and that contracts for work in connection with the project be <br />awarded to business concerns that provide economic <br />opportunities for low- and very low- income persons residing in the <br />metropolitan area in which the project is located." <br />The Subrecipient further agrees to ensure that opportunities for training and <br />employment arising in connection with a housing rehabilitation (including <br />reduction and abatement of lead -based paint hazards), housing construction, or <br />F,,,,,,,,,,, approved 20 42015 Template Draft Page 15 <br />