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EXHIBIT 3 <br />saute to City and shall, promptly and in any event within ten (10) Business Days after <br />written del nand therefor. (a) pay and discharge the saine, (b) elTect the release thereof by <br />delivering to City it surely bond complying, with the reyuircrncnt of applicable law,, for <br />such release, or (c) take such other action as City may reasonably require to release City <br />from any obligation or liability with respect to such stop notice or claim. <br />10.8 General Contractors who are Related Parties to the Developer- Tf thC. <br />Project is developed with general contractors who are Related Parties to the Developer, <br />the Developer must be audited to the subcontractor level by an outside auditing firm <br />approved by the City. The Developer shall pay for the audit to the subcontractor level by <br />an outside auditing Finn. <br />10.9 Labor Standards. Developer shall comply with the provisions of 24 Cl- It <br />570-603 and related requirements- Developer shall include in all applicable Coll ,n-aclion <br />contracts the provisions of federal law imposing; labor standards on tcdcrally assisted <br />contracts. f)evcloper shall comply with the requircrnents of the Secretary of I.abor in <br />accordance with the Davis -Bacon Act as amended (40 U.S.(-'. 3141 through 3148), the <br />provisions of Contract Work TTours and Safety Standards Act (40 U.S-C- 327 et seq. and <br />inrplcrnCntiog regulations), the Copeland Anti -Kiel: Back Act (40 T1-S.C. 270c and IS <br />U.S.C.. 874 el seq.), the implementing regulations of the U.S. Department of Labor <br />including 29 CPR Parts 1, 3, 5, 6 and 7, and all other applicable federal, state and local <br />laws and regulations pertaining to labor standards insofar as those acts apply to the <br />perlbmrance ofthe Agreement. Developer shall maintain (locumentalion that demonsn-ates <br />compliance with these provisions and such doCumerttation shall be made available to City <br />and HUD for review upon request. Developer shall cause or require to be inserted in full, <br />in all such contracts subject to such regulations, provisions meeting the requirements of <br />this paragraph. <br />10.10 HUD Form 4010. Developer shall comply and cause Developer personnel <br />to comply with the provisions ofTTUD Form 4010- TTTTD Fonn 4010 must be included in <br />the bid paCka and Construction contract and subcontracts for the Project - <br />it. FL:DLRAL (CD11G PROGRAM) COVLNANTS <br />Developer shall comply with this Section during the CDBG Compliance Period. <br />11.1 Oualification as Affordable Housing. As inorc particularly provided in <br />the Affordability Restrictions on Transfer of Property, Developer shall use, manage and <br />operate the Property in accordance with the requirements oftbis Agreement so as to <br />qualify the housing on the Property as A ffordable Housing with affordable rents. <br />11.2 Tenant and Participant Protection. Developer shall comply with the <br />rcquircnrcnts of24 CI�R 92.253. <br />11.3 Local Preference. Subject to compliance with the CDBG Regulations, the <br />HUD-Veteriuts Affairs, Supportive Housing rcferal program rcquircmcnts, the County of <br />Orange coordinated entry system and applicable California and federal fair housin3 laws. <br />local preference for Santa Ana residents and workers in tenant selection shall be a <br />City Council -)0 21 — 24 4/20/2021 <br />