[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR135.38]



[Page 732]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

    CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 135_ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS

--Table of Contents

 

 Subpart B_Economic Opportunities for Section 3 Residents and Section 3 

                            Business Concerns

 

Sec.  135.38  Section 3 clause.



    All section 3 covered contracts shall include the following clause 

(referred to as the section 3 clause):



    A. The work to be performed under this contract is subject to the 

requirements of section 3 of the Housing and Urban Development Act of 

1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 

is to ensure that employment and other economic opportunities generated 

by HUD assistance or HUD-assisted projects covered by section 3, shall, 

to the greatest extent feasible, be directed to low- and very low-income 

persons, particularly persons who are recipients of HUD assistance for 

housing.

    B. The parties to this contract agree to comply with HUD's 

regulations in 24 CFR part 135, which implement section 3. As evidenced 

by their execution of this contract, the parties to this contract 

certify that they are under no contractual or other impediment that 

would prevent them from complying with the part 135 regulations.

    C. The contractor agrees to send to each labor organization or 

representative of workers with which the contractor has a collective 

bargaining agreement or other understanding, if any, a notice advising 

the labor organization or workers' representative of the contractor's 

commitments under this section 3 clause, and will post copies of the 

notice in conspicuous places at the work site where both employees and 

applicants for training and employment positions can see the notice. The 

notice shall describe the section 3 preference, shall set forth minimum 

number and job titles subject to hire, availability of apprenticeship 

and training positions, the qualifications for each; and the name and 

location of the person(s) taking applications for each of the positions; 

and the anticipated date the work shall begin.

    D. The contractor agrees to include this section 3 clause in every 

subcontract subject to compliance with regulations in 24 CFR part 135, 

and agrees to take appropriate action, as provided in an applicable 

provision of the subcontract or in this section 3 clause, upon a finding 

that the subcontractor is in violation of the regulations in 24 CFR part 

135. The contractor will not subcontract with any subcontractor where 

the contractor has notice or knowledge that the subcontractor has been 

found in violation of the regulations in 24 CFR part 135.

    E. The contractor will certify that any vacant employment positions, 

including training positions, that are filled (1) after the contractor 

is selected but before the contract is executed, and (2) with persons 

other than those to whom the regulations of 24 CFR part 135 require 

employment opportunities to be directed, were not filled to circumvent 

the contractor's obligations under 24 CFR part 135.

    F. Noncompliance with HUD's regulations in 24 CFR part 135 may 

result in sanctions, termination of this contract for default, and 

debarment or suspension from future HUD assisted contracts.

    G. With respect to work performed in connection with section 3 

covered Indian housing assistance, section 7(b) of the Indian Self-

Determination and Education Assistance Act (25 U.S.C. 450e) also applies 

to the work to be performed under this contract. Section 7(b) requires 

that to the greatest extent feasible (i) preference and opportunities 

for training and employment shall be given to Indians, and (ii) 

preference in the award of contracts and subcontracts shall be given to 

Indian organizations and Indian-owned Economic Enterprises. Parties to 

this contract that are subject to the provisions of section 3 and 

section 7(b) agree to comply with section 3 to the maximum extent 

feasible, but not in derogation of compliance with section 7(b).