[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: 24CFR135.74]



[Page 734]

 

                 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 D_Complaint and Compliance Review

 

Sec.  135.74  Section 3 compliance review procedures.



    (a) Compliance reviews by Assistant Secretary. The Assistant 

Secretary shall periodically conduct section 3 compliance reviews of 

selected recipients and contractors to determine whether these 

recipients are in compliance with the regulations in this part.

    (b) Form of compliance review. A section 3 compliance review shall 

consist of a comprehensive analysis and evaluation of the recipient's or 

contractor's compliance with the requirements and obligations imposed by 

the regulations of this part, including an analysis of the extent to 

which section 3 residents have been hired and section 3 business 

concerns have been awarded contracts as a result of the methods 

undertaken by the recipient to achieve the employment, contracting and 

other economic objectives of section 3.

    (c) Where compliance review reveals noncompliance with section 3 by 

recipient or contractor. Where the section 3 compliance review reveals 

that a recipient or contractor has not complied with section 3, the 

Assistant Secretary shall notify the recipient or contractor of its 

specific deficiencies in compliance with the regulations of this part, 

and shall advise the recipient or contractor of the means by which these 

deficiencies may be corrected. HUD shall conduct a follow-up review with 

the recipient or contractor to ensure that action is being taken to 

correct the deficiencies.

    (d) Continuing noncompliance by recipient or contractor. A 

continuing failure or refusal by the recipient or contractor to comply 

with the regulations in this part may result in the application of 

sanctions specified in the contract through which HUD assistance is 

provided, or the application of sanctions specified in the regulations 

governing the HUD program under which HUD financial assistance is 

provided. HUD will notify the recipient of any continuing failure or 

refusal by the contractor to comply with the regulations in this part 

for possible action under any procurement contract between the recipient 

and the contractor. Debarment, suspension and limited denial of 

participation pursuant to HUD's regulations in 24 CFR part 24, where 

appropriate, may be applied to the recipient or the contractor.

    (e) Conducting compliance review before the award of assistance. 

Section 3 compliance reviews may be conducted before the award of 

contracts, and especially where the Assistant Secretary has reasonable 

grounds to believe that the recipient or contractor will be unable or 

unwilling to comply with the regulations in this part.

    (f) Consideration of complaints during compliance review. Complaints 

alleging noncompliance with section 3, as provided in Sec.  135.76, may 

also be considered during any compliance review conducted to determine 

the recipient's conformance with regulations in this part.