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Section 3

Section 3. 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

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  1. Section 3

  2. 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 • 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. September 30, 2010

  3. Applicability • $200K Threshold for Recipient Grant Award • $100K Threshold for Construction Contracts • Housing rehabilitation (including lead-based paint abatement) • Housing construction • Other public construction September 30, 2010

  4. Who are Section 3 Residents? • 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. • Public housing resident • Section 8 resident • Determining Income Levels • Section 3 low income is defined as 80% or below the median income of that area (CDBG low to moderate income standard). • Section 3 very low income is defined as 50% or below the median income of that area (CDBG low income standard). September 30, 2010

  5. What is a Section 3 business? • 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 September 30, 2010

  6. Eligibility for Employment and Contracting • 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. September 30, 2010

  7. Recipient Responsibilities • Establish a Section 3 Compliance File • Insert Section 3 clause in Construction Contracts exceeding $100,000 • Discuss contractor obligation at Preconstruction conference • Notify Section 3 residents and businesses • Newspaper Ads • Post announcements at Public Housing Authority office and City Hall, etc • Facilitate training and employment of residents • Partnership with Department of Labor • Partnership with Local Technical College • Award contracts to Section 3 businesses • Assist with compliance among contractors September 30, 2010

  8. CDBG General Condition 1) At all pre-construction conferences, provide the contractor and all subcontractors with a copy of the HUD Section 3 Brochure in addition to explaining their Section 3 obligations per the Section 3 contract clause in their contracts. September 30, 2010

  9. General Condition continued 2) At all pre-construction conferences, inform the contractor and all subcontractors of their responsibility to prepare a Job Order Request Form for submission to the Recipient and the Recipient’s Georgia DOL Career Center for all job openings that occur during the period of the contract. To meet this condition, the contractor should request the Georgia Department of Labor to screen for unemployed persons in the county where the CDBG work is taking place. September 30, 2010

  10. General Condition continued 3) Post in a prominent location at city hall/county courthouse, a current listing of job training activities available to low- to moderate-income residents of the county and publicize the availability of this listing via public hearings, advertisements, or other public service announcements. September 30, 2010

  11. Recipient Responsibilities (cont) • Submit Section 3 information as it is obtained in the online system. • Additional Section 3 information can be obtained at : September 30, 2010

  12. Review HUD information at: • http://www.hud.gov/offices/fheo/section3/section3.cfm September 30, 2010

  13. Contact Information Pam Truitt, Grants Consultant Phone: (404) 679-5240 E-Mail: pam.truitt@dca.ga.gov Rick Huber, Compliance Manager Phone: (404) 679-3174 E-Mail: rick.huber@dca.ga.gov September 30, 2010

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