Section 3: Economic Opportunities Staci Gilliam, Director - Section 3 DOL YouthBuild Federal Learning Exchange April 9, 2013 U.S. Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity

Topics to be Covered Basic Requirements YouthBuild as a Priority Category Recipient Responsibilities Section 3 Covered Program Funding Resources & Trends HUD/DOL Collaboration § 135.1 2

The Basics The purpose of Section 3 is to ensure that employment,(training and contracting) generated by certain HUD financial assistance shall, (TGEF) …, be directed to low- and very low-income persons…and to business concerns which provide economic opportunities to (those) persons. §135.1

The Basics Section 3 regulations do not require hiring or subcontracting unless it is necessary to complete the project. Numerical Goals: 30% of new hires 10% of Construction Contracts 3% of Non-construction Contracts

The Basics - continued Applies more broadly to PHAs HCDs: construction related activity only Applies to HUD financed activity, fully or partially funded - §135.3(b) Thresholds: $200K for HCDs - §135.3(a)(3) Section 3 is race and gender-neutral. 5

The Basics - continued Intended Beneficiaries Local low income-persons per HUD defined household income limits Businesses that are owned by or substantially employ such persons A Section 3 resident must meet the qualifications of the position to be filled - §135.34(c) A Section 3 business concern must have the ability and capacity to perform - §135.34(a)(2) 6

Priority Consideration YouthBuild participants are a priority category for Section 3 covered training and employment opportunities financed with HUD funding. §135.34(a) 7

Priority Consideration YouthBuild programs are a priority category for Section 3 covered contracting opportunities financed with HUD funding §135.36(a) § 135.1 8

Covered HUD Program Funding Covered Activity PIH Modernization Rehabilitation PIH Operations Maintenance HOPE VI Construction/rehab Choice Neighborhoods CDBG HOME Disaster Recovery Section 202/811 Lead Abatement

Recipient Responsibilities 5/13/2018 Recipient Responsibilities Notify Section 3 residents and businesses about economic opportunities Notify covered contractors Facilitate compliance among contractors Meet contracting and employment goals §135.32

Win-Win Relationships Registered Apprenticeship Opportunities for YouthBuild Graduates on HUD-Funded Construction Projects Registered Apprenticeships PHAs, HCDs and Contractors YouthBuild Participants

HUD/DOL Collaboration Joint Agreement to be finalized HUD will: Emphasize prioritization of engagement with YouthBuild Programs Advise Recipient Agencies to Notify YB Grantees about contracting opportunities DOL will work to increase apprenticeship placements for YouthBuild Graduates

PHAs with 250+ Project Based Units and CPD Grantees That Receive $1 Million+ in Covered HUD Funding *1500 Agencies 13

2011 Performance Indicators All new hires 41,982 Section 3 employees and trainees 16,065 Percent Section 3 Employment 38.3% Total construction contracts $ 6,494,215,181 Amount awarded to Section 3 businesses $ 525,395,030 Percent Section 3 contracts 8.1% Total Section 3 businesses receiving contracts 3,590 Total non-construction contracts $ 2,809,563,189 $ 46,173,620 1.6% 1,602 14

Section 3 Business Registry Pilot Pilot Program Launched November 2011 - D.C, Detroit, L.A., Miami & New Orleans Available to contractors located within each respective metro area Anticipated expansion to Super Storm Sandy Impact area Self certification: www.hud.gov/sec3biz 15 15 15

US Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity Economic Opportunity Division Phone: 202.402.5860 section3@hud.gov www.hud.gov/section3 www.hud.gov/sec3biz