section 3
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Section 3. 9/4/2014. Steed Robinson – Office of Community Development. What is Section 3?. Provision of the Housing and Urban Development Act of 1968 - 24 CFR Part 135 Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency - PowerPoint PPT PresentationTRANSCRIPT
Section 3
Steed Robinson – Office of Community Development
9/4/2014
Provision of the Housing and Urban Development Act of 1968 - 24 CFR Part 135
Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency
Requires recipients of certain HUD financial assistance to provide job training, employment and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhood.
What is Section 3?
Is the funded assistance for
Housing rehabilitation(including lead-based paint abatement)
Housing construction or Other public construction?
When is the regulation applicable?
September 11-13, 2013
Are you a recipient of an award of $200,000+?
Are you a contractor/subcontractor for covered work with a contract of $100,000+?
Does not apply to purchase of supplies and materials except when installation is involved
When is the regulation applicable?
September 11-13, 2013
When hiring, contracting or job training opportunities arise in connection with housing rehabilitation, housing construction or other public construction.
When is the regulation triggered?
Demonstrate good faith effort to meet numerical goals established in regulation— “safe harbor”
30 percent of the number of new hires
10 percent of the total dollar amount of contracts for building trades
3 percent of the total dollar amount of other contracts
What must a recipient do?
Ensure that contracts/subcontracts of $100,000+ make same good faith effort30 percent of the number of new hires10 percent of the total dollar amount of contracts for building trades
3 percent of the total dollar amount of other contracts
What must recipients and contractors do?
All CDBG contracts (Administration, Engineering, Construction) $100,000+ must include a Section 3 Clause
What must recipients and contractors do?
Outreach to Section 3 residents and businesses
Documentation of Outreach
Giving a Preference in hiring and contracting to Section 3 residences and businesses
How are these “safe harbor” goals achieved?
Not defined by regulation
Must be consistent with Federal, State and local laws
Will normally mean, “all things being equal”, the Section 3 resident or business will receive preference
What does Preference mean?
Section 3 resident must meet the qualifications of the position to be filled.
Section 3 business must have the ability and capacity to perform successfully under the terms and conditions of the proposed contract.
Eligibility for Employment and Contracting
Resident of HUD assisted housing
Residents of the non-metro county where the HUD-assisted project is located and who have a household income that falls below HUD’s income limits.
See DCA specific policies for “service area”.
Who are Section 3 Residents?
51% or more owned by Section 3 residents
Section 3 residents make up 30% of its full-time permanent staff
Provide evidence of a commitment to subcontract more than 25% of the dollar award of all subcontracts to businesses that qualify as a Section 3 business
What is a Section 3 business?
Updated and Adopted November 1, 2013
Solicitation Package Available as of January 2, 2014
DCA Policy – See Appendix II
In whole or in part statement Requirements apply to projects and activities
funded in whole or in part with covered funds and the entire project budget is subject to Section 3
Full time Regularly works a minimum of 40 hrs. per
week
New hires full-time employees for permanent, temporary
or seasonal employment opportunities
DCA Policy – Some specifics
“Make Every Effort in Your Disposal”
Order of Preference in Hiring (30% goal) Section 3 Residents of HUD assisted housing At the site In the City In the County
Order of Preference for Contracting (10%/3% Goal) ROB (Owned or controlled by LMI persons in the
city/county) 30% hires 25% contracting
DCA Policy – Some specifics
“Make Every Effort in Your Disposal”
Providing Other Economic Opportunities If a greater need is identified, training may be
substituted for hiring and contracting goals. Must equal or exceed 3% of total contract
award If a preference is claimed and if the contractor
cannot comply with goals, this can substitute See polices for standards for training
DCA Policy – Some specifics
“Accepts responsibility for enforcing Section 3
requirements and pro-actively providing notice”
Subrecipient Responsibilities
Post job opportunities in sources generally available to LMI people
Place this language in all contract solicitations— “This project is covered under the requirements of Section 3 of the HUD Act of 1968.”
Pre-bid meetings Preconstruction conferences Section 3 Clause
Subrecipient Responsibilities
Providing Resident Certification and Affidavit Forms
Encouraging the training of Section 3 residents
Reporting
Refusing to award to violators
Using the DCA solicitation package
Documenting actions taken to comply
Subrecipient Responsibilities
Do at least one of the following
Opportunity fair for contractors and residents
Post job sites with 24”x24” placard with specific wording
Subrecipient Responsibilities
Use the DCA Solicitation Package. It must be returned or bid is not acceptable.
If numerical goals are not met, must provide explanation and documentation for DCA review and approval.
Subrecipient & Contractor Responsibilities
Post positions in at least three community sources (see Policy)
Use of temporary agencies Placements must self certify and be
offered Preference For contracting, at least one pre-bid
meeting must be held as form of Notice Post contracting opportunities in at
least three community sources (see Policy)
Operating Procedures
Contractor must convey past history of compliance For contracts effective January 1, 2014
New contract language regarding compliance for those that claim a Preference Preference must be maintained or
subject to penalties Contractors may be banned from
future participation
Operating Procedures
Instructions Section 3 Clause Cure and Termination Clause Selection of Preference Previous Compliance Certification Action Plan
Solicitation Package
Section 3 Self-Certification and Action Plan Allows a contractor to claim preference or Allows a contactor to decline preference
Previous Section 3 Compliance Certification Allows a contractor to certify compliance
on previous work
Solicitation Package (Forms)
Assurance of Compliance Certification/Action Plan List subcontractors (if known) List of workforce
Changes will constitute NEW hires Provides “Before and After” picture for
compliance documentation Provides record keeping requirements
Solicitation Package (Forms)
Self Certifications
Solicitation Package (Forms)
Filed directly with HUD(see DCA Section 3 Policy)
Complaints
Applies broadlyNoticePreferenceComplaintsReportingDocumentation
Summary
Pam Truitt, Grants ConsultantPhone: (404) 679-5240E-Mail: [email protected]
Michael Casper, Compliance Manager
Phone: (404) 679-0594E-Mail:
Contact Information