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SECTION 3 REQUIREMENTS
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, shail 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 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 io 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 suocontract 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, 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 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).
Marshall Courts Phase VI Demolition
LFBEMCP7D-09-24
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