Section_3_Clause.pdf

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Attached to
Jerry Ambrose Veterans Council Transitional Housing Rehab - Phase II
Solicitation number
2025-IFB-017
Issued by
Mohave County, Arizona

About this file

The document is a Section 3 Clause from the Housing and Urban Development (HUD) Act of 1968, which mandates specific employment and economic opportunity requirements for HUD-assisted projects. The clause is designed to ensure that employment and economic opportunities generated by HUD assistance are directed to low- and very low-income persons in the project area. Contractors are required to comply with HUD's regulations in 24 CFR part 75, which includes notifying labor organizations, posting notices about job opportunities, and including the Section 3 clause in all subcontracts.

The clause outlines strict compliance requirements, with potential sanctions for noncompliance including contract termination, debarment, or suspension from future HUD-assisted contracts. Contractors must certify that they have no impediments preventing compliance and must ensure that vacant employment positions are not filled in a way that circumvents the intent of providing opportunities to low-income individuals. The regulation applies to all stages of contract execution, including positions filled after contractor selection but before contract execution, with the goal of maximizing economic opportunities for low-income residents in the project area.

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Text version

THIS CLAUSE MUST BE INCLUDED IN ALL SECTION 3 COVERED RFPs, RFQs, BIDS AND CONTRACTS

Section 3 Clause

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 the 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 in the project area.

The parties to this contract agree to comply with HUD's regulations in 24 CFR part 75, 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 75 regulations.

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; job titles subject to hire; availability of apprenticeship and training positions; the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

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 subcontractor 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 CFR part 75.

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 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24

CFR part 75.

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 contracts.

File details come from the government source that posted it. Updated .