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SECTION 3 REQUIREMENTS
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. 170u
(Section 3). The purpose of Section 3 is to ensure that employment and other economic
opportunities generated by certain HUD financial assistance shall, to the greatest extent
feasible, and consistent with existing Federal, State, and local laws and regulations, be
directed to low-and very income persons, particularly those who are recipients of
government assistance for housing and to business concerns which provide economic
opportunities to low- and very low-income persons.
B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR Part 75,
which implements Section 3. As evidenced by 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 75 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 of job titles subject to hire, availability of
apprenticeship and training positions, the qualifications for each; and the name and
location of the persons 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 75, and agrees to take appropriate action, as
provided in an applicable provision of the subcontract in this Section 3 clause, upon a
finding that the subcontractor is in violation of the regulations in 24 CFR Part 75, 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
CER Part 75.
E. The contractor will certify that any vacant employment positions, training positions, and
any subcontracting opportunities, that are required (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 75 require employment opportunities to be directed, were not
filled to circumvent the contractor’s obligations under 24 CFR Part 75.
F; Noncompliance with HUD’s regulations in 24 CFR Part 75 may result in sanctions,
termination of this contract for default, and debarment or suspension from future
HUD assisted contractors.
Financial Operations, IC & RA Review Initial:
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