1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

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

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

9. 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

10. 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

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

12. 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

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

14. 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
$ ,395,030
Percent Section 3 contracts
8.1%
Total Section 3 businesses receiving contracts
3,590
Total non-construction contracts
$ 2,809,563,189
$ ,173,620
1.6%
1,602 14

15. 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: 15 15 15

16. US Department of Housing and Urban Development
Office of Fair Housing and Equal Opportunity
Economic Opportunity Division
Phone: