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