2011 CDBG Applicants’ Workshop Fair Housing/ Equal Opportunity and Section 3

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 What is Fair Housing/Equal Opportunity? Ensuring non-discriminatory treatment and equal access to all recipients of CDBG funds. Affirmatively furthering Fair Housing.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicability ▪Infrastructure improvements ▪Public Facilities ▪Housing Rehabilitation ▪Economic Development ▪Down-Payment Assistance ▪Section 8 Rental Assistance ▪Any activity receiving federal funds

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Categories Race Color National origin Gender Age Religion Any other protected categories of persons

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Laws and Regulations Several Federal laws protect individuals from discrimination and apply to CDBG funded activities. These include: ▪Section 109 of the Housing and Community Development Act of 1974-prohibits discrimination on the basis of race, color, national origin, sex or religion in any CDBG-funded program or activity (24 CFR (b)).

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Laws and Regulations ▪Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in housing- related transactions on the above basis as well as familial status and handicap (disability). ▪Title VI of the Civil Rights Act- No exclusion from participation in federally funded programs or activities based on race, color, or national origin ▪Section 104(b)(2) of the Housing and Community Development Act of 1974 – requires that each grantee certify that the grant will be administered in conformance with the Fair Housing Act and that the grantee will “affirmatively further fair housing” (AFFH).

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Laws and Regulations Section 504 of the Rehabilitation Act of 1973 – prohibits discrimination based on disability in any program or activity receiving federal financial assistance. Architectural Barriers Act of 1968 – requires that buildings constructed or assisted with federal funds be accessible to and usable by handicapped persons.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Laws and Regulations Section 3 of the Housing and Urban Development Act of 1968 requires that employment and other economic opportunities arising in connection with housing rehab, construction or other public construction projects shall be given to low- and very low-income persons, to greatest extent feasible (24 CFR Part 135 and 24 CFR ).

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicable Laws and Regulations States and Local Governments receiving CDBG funds must certify that they will affirmatively further fair housing (24 CFR and 24 CFR Part (a)(1)).

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 State government responsibilities: ▪identifying impediments to fair housing choice ▪conducting fair housing planning ▪taking actions to overcome the identified impediments ▪maintaining records ▪assuring that local governments comply with certifications.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Local government responsibilities: ▪Develop proposed action to AFFH for state review and approval ▪Develop complaint procedure ▪Develop method for documenting efforts to promote and monitor activities ▪Other requirements may be imposed by state

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Complaints/Violations of FHEO Any and all citizen complaints are reported to HUD Fair Housing/Equal Opportunity (FHEO) for investigation. Additional information can be obtained in the CDBG Recipients’ Manual or at HUD

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Section 3 Emphasis What is Section 3? Provision of the Housing and Urban Development Act of 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.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Applicability ▪$200K Threshold for Recipient Grant Award ▪$100K Threshold for Construction Contracts ▪Housing rehabilitation (including lead-based paint abatement) ▪Housing construction ▪Other public construction

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 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

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 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

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 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

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Recipient Responsibilities (cont) Submit Section 3 information as it is obtained in the online system. Additional Section 3 information can be obtained at : on3.cfm

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Contact Information Pam Truitt, Grants Consultant Phone: (404) Rick Huber, Compliance Manager Phone: (404) Steed Robinson, Director Phone: (404)