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Section 3 Overview (see also DCA Policy– Appendix R)

Section 3 Overview (see also DCA Policy– Appendix R). 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

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Section 3 Overview (see also DCA Policy– Appendix R)

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  1. Section 3 Overview (see also DCA Policy– Appendix R)
  2. What is Section 3? September 11-13, 2013 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.
  3. When is the regulation applicable? September 11-13, 2013 Is the funded assistance for Housing rehabilitation (including lead-based paint abatement) Housing construction or Other public construction?
  4. 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
  5. When is the regulation triggered? September 11-13, 2013 When hiring, contracting or job training opportunities arise in connection with housing rehabilitation, housing construction or other public construction.
  6. What must a recipient do? September 11-13, 2013 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
  7. What must recipients and contractors do? September 11-13, 2013 Ensure that contracts/subcontracts of $100,000+ make same good faith effort 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
  8. What must recipients and contractors do? September 11-13, 2013 All CDBG contracts (Administration, Engineering, Construction) $100,000+ must include a Section 3 Clause
  9. How are these “safe harbor” goals achieved? September 11-13, 2013 Outreach to Section 3 residents and businesses Documentation of Outreach Giving a Preference in hiring and contracting to Section 3 residences and businesses
  10. What does Preference mean? September 11-13, 2013 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
  11. Eligibility for Employment and Contracting September 11-13, 2013 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.
  12. Who are Section 3 Residents? September 11-13, 2013 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.
  13. What is a Section 3 business? September 11-13, 2013 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
  14. DCA Policy – See Appendix R September 11-13, 2013 Updated and Adopted October 31, 2013 Solicitation Package being developed
  15. DCA Policy – Some specifics September 11-13, 2013 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
  16. DCA Policy – Some specifics September 11-13, 2013 “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 county) 30% hires 25% contracting
  17. DCA Policy – Some specifics September 11-13, 2013 “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
  18. Subrecipient Responsibilities September 11-13, 2013 “Accepts responsibility for enforcing Section 3 requirements and pro-actively providing notice”
  19. Subrecipient Responsibilities September 11-13, 2013 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
  20. Subrecipient Responsibilities September 11-13, 2013 Providing Resident Certification and Affidavit Forms Encouraging the training of Section 3 residents Reporting Refusing to award to violators Use the DCA solicitation package Documenting actions taken to comply
  21. Subrecipient Responsibilities September 11-13, 2013 Do at least one of the following Opportunity fair for contractors and residents Post job sites with 24”x24” placard with specific wording
  22. Subrecipient & Contractor Responsibilities September 11-13, 2013 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
  23. Operating Procedures September 11-13, 2013 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)
  24. Operating Procedures September 11-13, 2013 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 for future participation
  25. Solicitation Package September 11-13, 2013 Instructions Section 3 Clause Cure and Termination Clause Selection of Preference Previous Compliance Certification Action Plan
  26. Contact Information September 11-13, 2013 Pam Truitt, Grants Consultant Phone: (404) 679-5240 E-Mail: pam.truitt@dca.ga.gov Michael Casper, Compliance Manager Phone: (404) 679-0594 E-Mail: michael.casper@dca.ga.gov
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