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agreement or other contract or understand- applicants are employed, and that employees ing, if any, a notice advising the said labor are treated during employment, without reorganization or workers' representative of his gard to their race, color, religion, creed, sex, commitments under this section 3 clause and or national origin. Such action shall include, shall post copies of the notice in conspicuous but not be limited to, the following: employplaces available to employees and applicants ment, upgrading, demotion, or transfer; refor employment or training.

cruitment, or recruitment advertising, lay"D. The contractor will include this sec- off or termination; rates of pay or other tion 3 clause in every subcontract for work forms of compensation; and selection for in connection with the project and will, at training, including apprenticeship. The conthe direction of the applicant for or recipient tractor agrees to post in conspicuous places, of Federal financial assistance, take appro- available to employees and applicants for empriate action pursuant to the subcontract ployment, notices to be provided by or at the upon a finding that the subcontractor is in direction of the Government setting forth violation of regulations issued by the Sec- the provisions of this Equal Opportunity retary of Housing and Urban Development, clause. 24 CFR, Part 135. The contractor will not sub- "(2) The contractor will, in all solicitacontract with any subcontractor where it tions or advertisements for employees placed has notice or knowledge that the latter has by or on behalf of the contractor, state that been found in violation of regulations under all qualified applicants will receive considera24 CFR, Part 135, and will not let any sub- tion for employment without regard to race, contract unless the subcontractor has first color, religion, creed, sex, or national origin. provided it with a preliminary statement of “(3) The contractor will send to each labor ability to comply with the requirements of union or representative of workers with which these regulations.

he has a collective bargaining agreement or "E. Compliance with the provisions of sec- other contract or understanding, a notice to tion 3, the regulations set forth in 24 CFR, be provided by or at the direction of the Part 135, and all applicable rules and or- Government advising the said labor union or ders of the Department issued thereunder workers' representative of the contractor's prior to the execution of the Agreement, commitments under this section, and shall shall be a condition of the Federal financial post copies of the notice in conspicuous assistance provided to the project, binding places available to employees and applicants upon the applicant or recipient for such as- for employment. sistance, its successors, and assigns. Failure “(4) The contractor will comply with all to fulfill these requirements shall subject the provisions of Executive Order No. 11246 of applicant or recipient, its contractors and September 24, 1965, and of the rules, regulasubcontractors, its successors, and assigns to tions, and relevant orders of the Secretary of those sanctions specified by the grant or loan Labor. agreement or contract through which Fed- “(5) The contractor will furnish all ineral assistance is provided, and to such sanc- formation and reports required by Executive tions as are specified by 24 CFR Section Order No. 11246 of September 24, 1965, and 135.135."

by the rules, regulations, and orders of the e. The Owner agrees that he will be bound Secretary of Labor, or pursuant thereto, and by the above Employment of Project Area will permit access to his books, records, and Residents and Contractors clause with respect accounts by HUD and the Secretary of Labor to his own employment practices when he for purposes of investigation to ascertain participates in federally assisted work. compliance with such rules, regulations, and

2.2 Equal employment opportunity. a. orders. The Owner shall incorporate or cause to be “(6) In the event of the contractor's nonincorporated into any contract for construc

compliance with the Equal Opportunity tion work, or modification thereof, as defined clauses of this contract or with any of the in the regulations of the Secretary of Labor said rules, regulations, or orders, this conat 41 CFR, Chapter 60, which is to be per- tract may be cancelled, terminated, or susformed pursuant to this Agreement, the fol- pended in whole or in part and the conlowing Equal Opportunity clause:

tractor may be declared ineligible for further

contracts in accordance with procedures auEQUAL EMPLOYMENT OPPORTUNITY

thorized in Executive Order No. 11246 of "During the performance of this contract, September 24, 1965, and such other sanctions the contractor agrees as follows:

as may be imposed and remedies invoked as “(1) The contractor will not discriminate

provided in Executive Order No. 11246 of against any employee or applicant for em

September 24, 1965, or by rule, regulation, ployment because of race, color, creed, reli

or order of the Secretary of Labor or as

otherwise provided by law. gion, sex, or national origin. The contractor

"(7) The contractor will include the porwill take affirmative action to ensure that

tion of the sentence immediately preceding

Paragraph (1) and the provisions of Para5 As used in Section 2.2, "HUD" means the graphs (1) through (7) in every subcontract United States of America acting through the or purchase order unless exempted by the Department of Housing and Urban Develop- rules, regulations, or orders of the Secretary ment.

of Labor issued pursuant to section 204 of

Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Government may direct as a means of enforcing such provisions including sanctions for noncompliance; Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Government, the contractor may request the United States to enter into such litigation to protect the interest of the United States."

b. The Owner agrees that he will be bound by the above Equal Opportunity clause with respect to his own employment practices when he participates in federally assisted construction work.

c. The Owner agrees that he will assist and cooperate actively with HUD and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the Equal Opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that he will furnish HUD and the Secretary of Labor such information as they may require for the supervision of such compliance, and that he will otherwise assist HUD in the discharge of HUD's primary responsibility for securing compliance.

d. The Owner further agrees that he will refrain from entering into any contract or contract modification subject to Executive Order No. 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the Equal Opportunity clause as may be imposed upon contractors and subcontractors by HUD or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order.

2.3 Cooperation in equal opportunity compliance reviews. The Owner shall cooperate with the Government in the conducting of compliance reviews and complaint investigations pursuant to all applicable civil rights statutes, Executive Orders, and rules and regulations pursuant thereto.

2.4 Flood insurance. If the project is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards and if the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, the Owner agrees that the project will be covered, during its anticipated economic or useful life, by flood insurance in an amount at least equal to its development or project cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is less.

2.5 Clean Air Act and Federal Water Pollution Control Act. In compliance with reg. ulations issued by the Environmental Protection Agency ("EPA"), 40 CFR, Part 15, 39 F.R. 11099, pursuant to the Clean Air Act, as amended ("Air Act"), 42 U.S.C. 1857, et seq., the Federal Water Pollution Control Act, as amended ("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the Owner agrees that:

a. Any facility to be utilized in the performance of this Agreement or any subcontract shall not be a facility listed on the EPA List of Violating Facilities pursuant to section 15.20 of said regulations;

b. He will promptly notify the Department of Housing and Urban Development field office director of the receipt of any communication from the EPA indicating that a facility to be utilized for the Agreement is under consideration to be listed on the EPA List of Violating Facilities;

c. He will comply with all the requirements of section 114 of the Air Act and section 308 of the Water Act relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in section 114 and section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder; and

d. He will include or cause to be included the provisions of this Section in every nonexempt subcontract, and that he will take such action as the Government may direct as a means of enforcing such provisions.

2.6 Prevailing wage rates. a. Attached hereto and incorporated herein as Exhibit D is a schedule of minimum rates of wages applicable to this Agreement.

b. All laborers and mechanics employed in the construction of the project shall be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the regulations issued by the Secretary of Labor under the Copeland Act (29 CFR, Part 3)), the full amounts due at the time of payment computed at wage rates not less than those contained in the wage determination decision of the Secretary of Labor of the United States, which is incorporated herein, regardless of any contractual relationship which may be alleged to exist between the Owner or any subcontractor and such laborers and mechanics; and the wage determination decision and the Department of Labor Wage Rate Information Poster shall be posted by

& Strike this Section If the Contract Rents under the proposed Housing Assistance Payments Contract, over the maximum term of said Contract, are $100,000 or less.

? As used in Sections 2.6 through 2.11, "HUD" means the United States of America acting through the Department of Housing and Urban Development. Strike Sections 2.6 through 2.11 if the project involves fewer than nine Contract units.

the Owner at the site of the work in a prominent place where it can be easily seen by the workers. For the purpose of this clause, contributions made or costs reasonably anticipated under section 1(b) (2) of the DavisBacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics subject to the provisions of paragraph c of this Section. Also for the purpose of this clause, regular contributions made or costs incurred for more than a weekly period under plans, funds, or programs, but covering the particular weekly period, are deemed to be constructively made or incurred during such weekly period.

c. The Owner may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b) (2) (B) of the DavisBacon Act, or any bona fide fringe benefits not expressly listed in section 1(b) (2) of the Davis-Bacon Act or otherwise not listed in the wage determination decision of the Secretary of Labor which is included in this Agreement, only when the Secretary of Labor has found, upon the written request of the Owner, that the applicable standards of the Davis-Bacon Act have been met. Whenever practicable, the Owner should request the Secretary of Labor to make such findings before the making of the Agreement. In the case of unfunded plans and programs, the Secretary of Labor may require the Owner to set aside in a separate account assets for the meeting of obligations under the plan or program.

d. The Owner shall comply with the Copeland (Anti-Kickback) Regulations (29 CFR, Part 3) of the Secretary of Labor which are herein incorporated by reference.

e. Any class of laborers or mechanics (including apprentices and trainees) which is not listed in the wage determination and which is to be employed under the Agreement shall be classified or reclassified conformably to the wage determination. In the event that agreement cannot be reached on the proper classification or reclassification of a particular class of laborers and mechanics (including apprentices and trainees) to be used, the question will be referred by HUD to the Secretary of Labor for final determination.

f. Whenever the minimum wage rate prescribed in the Agreement for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage rate and the Owner is obligated to pay a cash equivalent of such fringe benefit, an hourly cash equivalent thereof shall be established. In the event that agreement cannot be reached upon a cash equivalent of the fringe benefit, the question will be referred by HUD to the Secretary of Labor for final determination.

g. (1) (i) Apprentices will be permitted to work as such only when they are registered individually under a bona fide apprenticeship program registered with a State ap

prenticeship agency which is recognized by the Bureau of Apprenticeship and Training, U.S. Department of Labor; or, if no such recognized agency exists in a state, under a program registered with the Bureau of Apprenticeship and Training, U.S. Department of Labor. The allowable ratio of apprentices to journeymen in any craft classification shall not be greater than the ratio permitted to the Owner as to his entire work force under the registered program. Any employee listed on a payroll at an apprentice wage rate, who is not a trainee as defined in subsection (b) immediately following or is not registered as above, shall be paid the wage rate determined by the Secretary of Labor for the classification of work he actually performed. The Owner will be required to furnish to the other party to this Agreement written evidence of the registration of his program and apprentices, as well as of the appropriate ratios and wage rates for the area of construction prior to using any apprentices on the contract work.

(ii) Trainees will be permitted to work as such when they are bona fide trainees employed pursuant to a program approved by the U.S. Department of Labor, Manpower Administration, Bureau of Apprenticeship and Training, and where subsection (c) immediately following is applicable, in accordance with the provisions of paragraph g(2) of this section.

(iii) On contracts in excess of $10,000 the employment of all laborers and mechanics, including apprentices and trainees, as defined in 29 CFR Section 5:2(c) shall also be subject to the provisions of paragraph g(2) of this Section. Apprentices and trainees shall be hired in accordance with the provisions of paragraph g(2).

(2) The Owner agrees that:

(1) He will make a diligent effort to hire for the performance of the Agreement a number of apprentices or trainees, or both, in each occupation, which bears to the average number of the journeymen in that occupation to be employed in the performance of the Agreement the applicable ratio as determined by the Secretary of Labor;

(ii) He will assure that 25 percent of such apprentices or trainees in such occupation are in their first year of training, where feasible. Feasibility here involves a consideration of (A) the availability of training opportunities for first year apprentices, (B) the hazardous nature of the work for beginning workers, (C) excessive unemployment of apprentices in their second and subsequent years of training;

(iii) During the performance of the Agreement he will, to the greatest extent possible, employ the number of apprentices or trainees necessary to meet currently the requirements of (i) and (ii) immediately preceding;

(iv) He will maintain records of employment by trade of the number of apprentices and trainees, apprentices and trainees by first year of training, and of journeymen, and the wages paid and hours of work of such

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apprentices, trainees and journeymen; and mission of a "Weekly Statement of Complihe will make these records available for in- ance,” which is required under this Agreespection upon request of the Department of ment and the Copeland Regulations of the Labor and HUD;

Secretary of Labor (29 CFR, Part 3), and (v) If he claims compliance based on the the filing with the initial payroll or any criterion stated in 29 CFR Section 5a.4(b), subsequent payroll of a copy of any findings he will maintain records of employment, as by the Secretary of Labor under Section 2.60 described in the immediately preceding para- shall satisfy this requirement. The Owner graph, on non-Federal and nonfederally as- shall make the records required under the sisted construction work done during the labor standards clauses of this Agreement performance of the contract in the same available for inspection by authorized reprelabor market area; and he will make these sentatives of HUD and the Department of records available for inspection upon re- Labor, and will permit such representatives quest of the Department of Labor and HUD; to interview employees during working hours

(vi) He will supply one copy of the written on the job. notices required in accordance with 29 CFR C. The Owner shall also furnish to the Section 5a.4(c) at the request of Govern- other parties to this Agreement any other ment compliance officers, and will supply at information or certifications relating to emthree-month intervals during the perform- ployees in such form as such other party may ance of the Agreement and after completion request. of Agreement performance a statement de- 2.8 Disputes concerning wage rates and scribing steps taken toward making a dili- classifications of labor. a. All disputes congent effort and containing a breakdown by cerning prevailing wage rates or classificacraft, of hours worked and wages paid for tions arising under this Agreement involvfirst year apprentices and trainees, other ap- ing (1) significant sums of money, (2) large prentices and trainees, and journeymen. One groups of employees, or (3) novel or unusual copy of the statement will be sent to HUD situations shall be promptly reported to HUD and one to the Secretary of Labor.

for decision or, at the option of HUD, re2.7 Submittal of payrolls and related re- ferral to the Secretary of Labor of the United ports. a. Payrolls and basic records relating States. The decision of HUD or the Secretary thereto shall be maintained during the of Labor, as the case may be, shall be final. course of the work and preserved for b. All questions arising under this Agreeperiod of three years thereafter for all labor- ment relating to the application or interpreers and mechanics employed in the construc- tation of the Copeland (Anti-Kickback) Act tion of the project. Such records shall con- shall be referred to the Secretary of Labor tain the name and address of each such of the United States for rulings or interpreemployee, his correct classification, rates of tation, and such ruling or interpretation pay (including rates of contributions or costs shall be final. anticipated of the types described in section 2.9 Wage claims and adjustments. In 1(b) (2) of the Davis-Bacon Act), daily and cases of underpayment of salaries or wages weekly number of hours worked, deductions to any laborers or mechanics (including apmade, and actual wages paid. Whenever the prentices and trainees) by the Owner (or any Secretary of Labor has found under Section of his subcontractors), the Owner shall be 2.6c that the wages of any laborer or me- required to place an amount in escrow, as chanic include the amount of any costs rea- determined by HUD, sufficient to pay persons sonably anticipated in providing benefits employed on the work covered by the Agreeunder a plan or program described in section ment the difference between the salaries or 1(b) (2) (B) of the Davis-Bacon Act, the wages actually paid such employees for the Owner shall maintain records which show total number of hours worked, and the that the commitment to provide such bene

amounts withheld may be disbursed by HUD fits is enforceable, that the plan or program

for and on account of the Owner or the subis financially responsible, and that the plan

contractor to the respective employees to or program has been communicated in writ- whom they are due. ing to the laborers or mechanics affected,

2.10 Contract Work Hours and Safety and records which show the costs antici

Standards Act-overtime compensation. a. pated or the actual cost incurred in provid- Neither the Owner nor any subcontractor ing such benefits.

contracting for any part of the work which b. The Owner shall submit weekly to the may require or involve the employment of other party to this Agreement such copies

laborers or mechanics shall require or permit and summaries of all his payrolls and those any laborer or mechanic in any workweek in of each of his subcontractors as such other which he is employed on such work to work party may require. Each payroll and sum- in excess of forty hours in such workweek mary shall be accompanied by a statement unless such laborer or mechanic receives signed by the employer or his agent indi- compensation at a rate not less than one cating that the payrolls are correct and com- and one-half times his basic rate of pay for plete, that the wage rates contained therein all hours worked in excess of eight hours in are not less than those determined by the any calendar day or in excess of forty hours Secretary of Labor, and that the classifica- in any such workweek, as the case may be. tions set forth for each laborer or mechanic b. In the event of any violation of the conform with the work he performed. A sub- clause set forth in paragraph a of this Sec

tion, the Owner and any subcontractor responsible therefor shall be liable to any affected employee for his unpaid wages. In addition, such Owner and subcontractor shall be liable to the United States for liquidated damages. Such liquidated damages shall be computed, with respect to each individual laborer or mechanic employed in violation of the clause set forth in paragraph a of this Section, in the sum of $10 for each calendar day on which such employee was required or permitted to work in excess of eight hours or in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph


c. The Owner shall deposit in escrow such amounts determined by HUD to be necessary to satisfy and liability of the Owner or any subcontractor for liquidated damages as provided in paragraph b of this section.

2.11 Termination; debarment; subcontracts. a. A breach of the provisions of the foregoing Sections 2.6, 2.7, 2.8, 2.9, and 2.10 may be grounds for termination of this Agreement and for debarment as provided in 29 CFR Section 5.6.

b. The Owner shall insert in any subcontracts Sections 2.6 (and with respect to Section 2.6g(2), copies of 29 CFR Sections 5a.4, 5a.5, 5a.6 and 5a.7 shall be attached), 2.7, 2.8, 2.9, 2.10, and 2.11a, and also a clause requiring the subcontractors to include these Sections in any lower tier subcontract which they may enter into, together with a clause requiring this insertion in any further subcontracts that may in turn be made.

2.12 Disputes. a. Except as otherwise provided herein, any dispute concerning a question of fact arising under this Agreement which is not disposed of by agreement between the Department of Housing and Urban Development field office and the Owner may be submitted by the Owner to the Secretary of Housing and Urban Development. The decision of the Secretary or his duly authorized representative for the resolution of such disputes shall be final and conclusive, unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any proceeding under this Section, the Owner shall be afforded an opportunity to be heard and to offer evidence in support of his position.

b. This Section does not preclude consideration of questions of law in connection with the decision rendered under paragraph a of this Section; Provided, however, th: nothing herein shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

2.13 Interest of members, officers, or employees of Public Housing Agency, members of local governing body, or other public officials. No member, officer, or employee of the Public Housing Agency ("PHA"), no member

of the governing body of the locality (city and county) in which the project is situated, no member of the governing body of the locality in which the PHA was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the project, during his tenure or for one year thereafter, shall have any interest, direct or indirect, in this Agreement or in any proceeds or benefits arising therefrom.

2.14 Interest of member of or delegate to Congress. No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this Agreement or to any benefits which may arise therefrom.

2.15 Nonassignability. a. The Owner agrees that he has not made and will not make any sale, assignment, or conveyance or transfer in any other form, of this Agreement or the project or any part thereof or any of his interest therein, without the prior consent of the Government; Provided, however, That in the case of an assignment as security for the purpose of obtaining financing of the project, the Government shall consent in writing if the terms of the financing have been approved by the Government. An assignment by the Owner to a limited partnership of which the Owner is the sole general partner shall not be considered an assignment herein.

b. The Owner agrees that he will not change to a different rehabilitator from the one named in the preamble of this Agreement, except with the prior consent of the Government.

c. The Owner agrees that the approved rehabilitator has not made, and will not make, except with the prior consent of the Government, any assignment or transfer in any form of the rehabilitator's contract to construct the project, or of any part thereof, or any of the rehabilitator's interests therein.

d. The Owner agrees to notify the Government promptly of any proposed action covered by paragraph a or b or c of this Section. The Owner further agrees to request the written consent of the Government in regard thereto, except in the case of an assignment as security as provided in paragraph a of this Section.

e. For the purpose of this Section, a transfer of stock in the Owner or rehabilitator in whole or in part, by a party holding ten percent or more of the stock of said Owner or rehabilitator, or a transfer by more than one stockholder or the owner of 10 percent or more of the stock of said Owner, or any other similarly significant change in the ownership of such stock or in the relative distribution thereof, or with respect to the parties in control of the Owner or rehabilitator or the degree thereof, by any other method or means, whether by increased capitalization, merger with another corporation, corporate or other amendments, issuance of new or additional stock or classification of stock or otherwise, shall be deemed an assignment, conveyance, or transfer with re.

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