2011 CDBG Recipients’ Workshop Section 3

Page CDBG Recipients’ WorkshopSeptember 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 Recipients’ WorkshopSeptember 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 Recipients’ WorkshopSeptember 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 Recipients’ WorkshopSeptember 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 Recipients’ WorkshopSeptember 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.

Page CDBG Recipients’ WorkshopSeptember 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 Recipients’ WorkshopSeptember 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.

Page CDBG Recipients’ WorkshopSeptember 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.

Page CDBG Recipients’ WorkshopSeptember 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.

Page CDBG Recipients’ WorkshopSeptember Recipient Responsibilities (cont) Submit Section 3 information as it is obtained in the online system. Additional Section 3 information can be obtained at :

Page CDBG Recipients’ WorkshopSeptember Review HUD information at: ction3.cfmhttp:// ction3.cfm

Page CDBG Recipients’ WorkshopSeptember Contact Information Pam Truitt, Grants Consultant Phone: (404) Rick Huber, Compliance Manager Phone: (404)