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Kansas City, Missouri

Kansas City, Missouri . Section 3 Program. Background Information. 2005 - Department of Housing & Community Development was dismantled Prior to 2005 – Section was a contact clause 2006 – HUD Section 3 audit – February 2006 - Letter of Findings -- April , 2006

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Kansas City, Missouri

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  1. Kansas City, Missouri Section 3 Program

  2. Background Information • 2005 - Department of Housing & Community Development was dismantled Prior to 2005 – Section was a contact clause • 2006 – HUD Section 3 audit – February 2006 - Letter of Findings -- April , 2006 - City’s Response -- May, 2006 • June – HUD approved the City’s Section 3 Program City opened Section 3 Office – June 1, 2006

  3. Kansas City, Missouri Section 3 Office • One Stop-Shop for Section 3 transactions • Contract with Full Employment (FEC) a. Section 3 Resident Certifications (FEC staff on site at Section 3 Office) b. Section 3 Resident Skills Assessments, Job training, job placement • Certification of Section 3 Business Concerns • Routinely updates Section 3 Business Concern list on the City’s website – www.kcmo.org • Reviews and approves Section 3 Utilization Plans for the City • Receives Section 3 monthly and quarterly reports • Prepares and submits the City’s Annual 60002 report on Section 3 activities

  4. City Manager’s Office Human Relations Division Contract Compliance Division Section 3 Office

  5. Section 3 Program ↔ ↔ Contract Compliance Division • On site Section 3 monitoring • Desk audits Section 3 Office Full Employment Council of Greater Kansas City • Resident Certification • Certification of Section 3 business concerns • Review/Approve Section 3 Utilization Plans • Review/Analyze Monthly/Quarterly Reports • Section 3 Outreach Activities (fairs, monthly community sessions) • Prepare City Sections Reports to be submitted to HUD • Resident skills assessing • Job readiness training • Job placement • Large array of federal & state funded programs to support Section 3 resident training • Job coaching • On site visits after job placement

  6. Current & UpcomingSection 3 Programs in Kansas City, Missouri • Entitlement (CDBG/HOME Programs thru Annual Consolidated Plan • Minor Home Repair • Housing Repair Services • CHDO Programs • Beacon Hill Developments – a Section 108 Development Neighborhood Stabilization Program NSP1 CDBG-R (ARRA) Lead Abatement Program Special Projects Neighborhood Stabilization Program NSP2 Green Impact Zone (new) Weatherization Program (ARRA) – (in Green Impact Zone only)

  7. CDBG and HOME Programsin Annual Consolidated Plan • Section 3 Utilization Plan is required as part of the application process to the City • Approved Section 3 Plans are required prior to the issuance of a City contract • Approved Section 3 Plans become part of the contract with the City

  8. Section 3Guidebook Policies, Procedures & Plan Packet

  9. Kansas City, Missouri Neighborhood Stabilization Program • Has a Land Bank entity – through City Contract • Has selected community based groups, which are being referred to as Primary Property Developers – (PPDs) • Primary Property Developers (PPDs) will be given contracts that will give them a bundle of foreclosed properties and provide significant funding for rehabilitation and marketing for resale • Kansas City has already established the Section 3 requirements for the Neighborhood Stabilization Program • Mandatory training Session for PPDs was conducted on June 1, 2009

  10. Key Components of Kansas City, Missouri Section 3 Utilization Plan • Designate a project Section 3 coordinator • List of subcontractors of $100,000 or more (name, company, owner, contact person, amount of contract and %) • For each such subcontractor listed, a complete Section 3 Utilization Plan is required

  11. Key Components of Kansas City Missouri Section 3 Utilization Plan • Section 3 Employment Plan – Project new hire opportunities and commit to a % of Section 3 hires • Attach a list of core employees • Section 3 Business Concerns Utilization Plan – Actually list the Section business concerns to be used on the project – date and amount and percent of contract

  12. Key Components of Kansas City Missouri Section 3 Utilization Plan • Section 3 Business Concerns Utilization Reports by Property Address or NSP program) • Section 3 Utilization Plan, when approved, becomes part of contract documents • Required aggressive outreach to Section 3 Business Concerns • Required bid notices published for work to be performed in three local newspapers

  13. Key Components of Kansas City Missouri Section 3 Utilization Plan – Neighborhood Stabilization Plan Program • Section 3 outreach is to be well documented by Primary Property Developers • Section 3 signage at all NSP property locations • Monthly Section 3 Reports are required to be submitted by PPDs • Subject to compliance monitoring by the City’s Contract Compliance Division

  14. Kansas City, Missouri Part II Section 3 Program Monitoring

  15. Key Components of Kansas City Missouri Section 3 Monitoring Process • The Contract Compliance Office vigorously monitors all Section 3 Approved Utilization Plans to ensure requirements and responsibilities associated with work on the Section 3 projects are met • Monitoring procedures are designed to decrease occurrence of noncompliance violations. Processes should be developed to ensure that monitoring procedures have been executed and Section 3 requirements have been fulfilled • Toward this end, the following procedures should be included in a monitoring policy:

  16. Key Components of Kansas City Missouri Section 3 Monitoring Process • The public body/fund recipient (PB/RF) should put the Developer/Contractor on notice in writing, regarding monitoring processes, procedures and requirements they must adhere to and submittals they must remit upon request • Boilerplate correspondence should be developed, tailored to fit the needs of the (PB/RF), the HUD program and specific projects • A Matrix or a checklist that includes Sec 3 project requirements and monitoring methodology, is critical to ensuring overall compliance with Sec 3 • Boilerplate follow-up correspondence to the Developer/Contractor should be designed, in the event that required documentation was not submitted

  17. Key Components of Kansas City Missouri Section 3 Monitoring Process • The Contract Compliance Office conducts Section 3 monitoring visits on the project site and at the recipients office location, if necessary. Visits should be made as often as necessary and encompass the following: • Verification that Section 3 signage is posted on the job site for the duration of the construction and that it is visible from the roadway • Verification that the signage identifies the project as a Section 3 project, along with Developer/Contractor information for employment opportunities • Ensure that the Section 3 plan is on the project site

  18. Key Components of Kansas City Missouri Section 3 Monitoring Process • Conduct interviews with Section 3 workers, including confirmation of their work tenure on the project • Identification of the Section 3 workers, to include confirmation by visual identification against a drivers license or photo identification • The Contract Compliance Office requires the following documentation from the Developer/Contractor: • Copies of the Section 3 Business Concerns executed contracts with the Developer/Contractor • Copies of the Business Concern’s Section 3 certification documents

  19. Key Components of Kansas City Missouri Section 3 Monitoring Process • Copies of the Section 3 residents new hire certification documents • Copies of the Developer/Contractor’s core list of current employees, aside from the new hires • Copies of payroll records that substantiate payment to and continuous employment of the Section 3 new hires that were interviewed • Copies of payroll records that substantiate the payment to and the continuous employment of the Section 3 new hires that were not interviewed

  20. Key Components of Kansas City Missouri Section 3 Monitoring Process • Copies of the aforementioned documentation for Section 3 new hires that replace Sec 3 workers, that are no longer employed by the Developer/Contractor, for the duration of the project NOTE: It is acceptable for a Section 3 new hire to be employed at another location, controlled by the developer/contractor, for the duration of the subject Sec 3 project • Copy of the Section 3 project’s current construction schedule, remitted as updated on a continuous basis • Refusal to submit documentation to Contract Compliance may be viewed as a breach of contract. The Developer/Contractor should be notified accordingly

  21. Key Components of Kansas City Missouri Section 3 Monitoring Process • Any refusal to adhere to compliance requirements, may be viewed as a breach of contract, whereupon the Developer/Contractor should be notified accordingly • Notification of corrective action should be provided to the Developer/Contractor • Developer and or General Contractor must document efforts to comply with Section 3 provisions

  22. Kansas City, Missouri Section 3 Program Part III

  23. Results • 428 persons have been certified as Section 3 residents • 125 small businesses have been certified as Section 3 Business Concerns. • 77 Section 3 residents have been place on jobs mostly related to HUD funded projects.

  24. 38 Section 3 business concerns cumulatively have received $3,520,461 representing 16% if the City’s contracting activity with HUD sourced dollars. For the 2008 Consolidated Plan year alone, the Section 3 business percentage for Kansas City overall was over 17%. • 350 Section 3 residents have participated in job readiness and training programs through the City’s relationship with the Full Employment Council of Greater Kansas City • Conducted over 90 free business training seminars for Section 3 business concerns and other small businesses in Kansas City.

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