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EXHIBIT E -2 <br />Page 1 of 2 <br />SECTION 3 HUD ACT OF 1968 <br />The parties agree that <br />A. The work to be performed under this contract is subject to the requirements of section 3 of the <br />Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (section 3). The <br />purpose of section 3 is to ensure that employment and other economic opportunities generated by <br />HUD assistance or HUD - assisted projects covered by section 3, shall, to the greatest extent <br />feasible, be directed to low- and very low- income persons, particularly persons who are recipients <br />of HUD assistance for housing. <br />B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which <br />implement section 3. As evidenced by their execution of this contract, the parties to this contract <br />certify that they are under no contractual or other impediment that would prevent them from <br />complying with the part 135 regulations. <br />C. The contractor agrees to send to each labor organization or representative of workers with <br />which the contractor has a collective bargaining agreement or other understanding, if any, a notice <br />advising the labor organization or workers' representative of the contractor's commitments under <br />this section 3 clause, and will post copies of the notice in conspicuous places at the work site <br />where both employees and applicants for training and employment positions can see the notice. <br />The notice shall describe the section 3 preference, shall set forth minimum number and job titles <br />subject to hire, availability of apprenticeship and training positions, the qualifications for each; and <br />the name and location of the person(s) taking applications for each of the positions; and the <br />anticipated date the work shall begin. <br />D. The contractor agrees to include this section 3 clause in every subcontract subject to <br />compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as <br />provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding <br />that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not <br />subcontract with any subcontractor where the contractor has notice or knowledge that the <br />subcontractor has been found in violation of the regulations in 24 CFR part 135. <br />E. The contractor will certify that any vacant employment positions, including training positions, that <br />are filled (1) after the contractor is selected but before the contract is executed, and (2) with <br />persons other than those to whom the regulations of 24 CFR part 135 require employment <br />opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR <br />part 135. <br />F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination <br />of this contract for default, and debarment or suspension from future HUD assisted contracts. <br />G. With respect to work performed in connection with section 3 covered Indian housing assistance, <br />section 7(b) of the Indian Self- Determination and Education Assistance Act (25 U.S.C. 450e) also <br />applies to the work to be performed under this contract. Section 7(b) requires that to the greatest <br />extent feasible (i) preference and opportunities for training and employment shall be given to <br />Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian <br />organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to <br />the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent <br />feasible, but not in derogation of compliance with section 7(b). <br />