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low-income residents within the service area or the neighborhood in which the project is <br /> located, and to low-and very low-income participants in other HUD programs. <br /> The Subrecipient certifies and agrees that no contractual or other legal incapacity exists <br /> that would prevent compliance with these requirements. <br /> b. Notifications <br /> The Subrecipient agrees to send to each labor organization or representative of workers <br /> with which it has a collective bargaining agreement or other contract or understanding, if <br /> any, a notice advising said labor organization or worker's representative of its commitments <br /> under this Section 3 clause and shall post copies of the notice in conspicuous places <br /> available to employees and applicants for employment or training. <br /> c. Subcontracts <br /> The Subrecipient will include this Section 3 clause in every subcontract and will take <br /> appropriate action pursuant to the subcontract upon a finding that the subcontractor is in <br /> violation of regulations issued by the grantor agency. The Subrecipient will not subcontract <br /> with any entity where it has notice or knowledge that the latter has been found in violation <br /> of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has <br /> first provided it with a preliminary statement of ability to comply with the requirements of <br /> these regulations. <br /> D. Conduct <br /> 1. Assignability: The Subrecipient shall not assign or transfer any interest in this Agreement without <br /> the prior written consent of the City thereto; provided, however, that claims for money due or to <br /> become due to the Subrecipient from the City under this Agreement may be assigned to a bank, <br /> trust company, or other financial institution without such approval. Notice of any such <br /> assignment or transfer shall be furnished promptly to the City. <br /> 2. Subcontracts: <br /> a. Approvals <br /> The Subrecipient shall not enter into any subcontracts with any agency or individual in the <br /> performance of this contract without the written consent of the City prior to the execution of <br /> such Agreement. <br /> b. Monitoring <br /> The Subrecipient will monitor all subcontracted services on a regular basis to assure contract <br /> compliance. Results of monitoring efforts shall be summarized in written reports and <br />