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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. What the purpose of Section 3?. Ensure employment and other economic opportunities To the greatest extent feasible Consistent with federal, state and local laws

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Section 3

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  1. Section 3

  2. What is Section 3? September 5-6, 2013 • Provision of the Housing and Urban Development Act of 1968 - 24 CFR Part 135

  3. What the purpose of Section 3? September 5-6, 2013 • Ensure employment and other economic opportunities • To the greatest extent feasible • Consistent with federal, state and local laws • Be directed to LMI persons/business concerns that provide opportunities to LMI persons

  4. What is applicability of Section 3? September 5-6, 2013 • Applies to training, employment and contracting arising in connection with the expenditure of CD assistance that is used for • Housing rehabilitation • Housing construction • Other public construction

  5. What are the thresholds? September 5-6, 2013 • $200K for Recipients • $100K Construction Contracts (for contractors and subcontractors) • Section 3 applies to Recipients even if all contracts are less than $100,000

  6. Important September 5-6, 2013 • Management, administrative and professional jobs connected with a Section 3 project are covered • New hires means full-time for permanent, temporary, or seasonal (more later)

  7. Responsibility of Recipient September 5-6, 2013 • Comply with Section 3 in its own operations

  8. Responsibility of Recipient September 5-6, 2013 • Ensure compliance of its contractors and subcontractors • Implementing procedures to provide notice • Notifying contractors of their responsibility • Facilitating training and employment to reach goals (see Appendix A of Part 135) • Refraining from contracting with violators • Documenting actions • Providing preference

  9. DCA’s Policy -Adopted June 2013 September 5-6, 2013 • Adopted as a result of DCA’s compliance review • Included as part of your CDBG Recipients’ Manual • Effective date – in effect. • January 2014 • Subject to revision/feedback appreciated

  10. Applicability September 5-6, 2013 • Are we (local governments) responsible? • Yes! • For provisions that require sub-recipient compliance

  11. Key Provisions • Covers all CDBG assistance, funded in whole or in part, connected to housing construction/rehab and public construction • Covers all DCA recipients (receiving more than $200,000) and sub-recipients (local governments, contractors, sub-contractors, developers, non-profits, etc.) • Polices are implemented regardless of contract amount (subject to revision) September 5-6, 2013

  12. Key Provisions • Includes professional service contracts • When required Section 3 forms are not provided with bid, bid is non-responsive September 5-6, 2013

  13. Goals • 30% of new hires in this order • At the site • In the city • In the county • In the State of Georgia • 10% of total dollar amount to Section 3 businesses for building trades work (3% for other contracts) September 5-6, 2013

  14. Goals • Other training and employment opportunities may be provided if equal to or greater than 2% (3%) of contract award • Employment readiness • Section 3 SBC development training • Computer literacy and data entry training September 5-6, 2013

  15. Goals • If unable to meet goals • Satisfactory documentation of effort • Other economic development opportunities • 3% of total contract award September 5-6, 2013

  16. Sub-recipient Responsibilities • For every contract and sub-contract solicitation (see IV, Sub-Recipient Responsibilities) • Post job openings • Solicitations include statement that project is covered under Section 3 • Notify contractors in pre-bid meetings • Section 3 clause in all contracts • Provide certification forms September 5-6, 2013

  17. Sub-recipient Responsibilities • For every contract and sub-contract solicitation (cont) • Encourage training of Section 3 residents • Opportunity fair to facilitate contact between businesses and Section 3 residents • Documentation of efforts and quarterly reports • Refusing to award to debarred contractors • Job site posting requirements • Use Solicitation package September 5-6, 2013

  18. Order of Preference September 5-6, 2013 • Hiring • Site where work is performed • City where work is performed • County where work is performed • State of Georgia • Contracting • Resident Owned Business • 30% of employees Section 3 • Award no less than 25% of award to Section 3 businesses

  19. DCA Section 3 Responsibilities September 5-6, 2013 Section VIII

  20. Operating Procedures September 5-6, 2013 • Hiring (includes part time under policy) • See Notice requirements • List as “Section 3 Covered Position under the HUD Act of 1968 and that HUD Recipients (Section 3 Residents) are encouraged to apply” • Hire Section 3 resident “all other things equal”

  21. Operating Procedures September 5-6, 2013 • Procurement • Pre-bid meeting • Notice of contracting opportunities (PH newsletters, etc.) • All adds must include “Section 3 Covered Contract and all HUD Resident Owned Business Concerns are encouraged to apply”

  22. Operating Procedures September 5-6, 2013 • Procurement • All procurements must include the attached “Solicitation Package” • Prior compliance required (for contracts effective January 1, 2014) • All solicitations must include a Certification of prior compliance • Q&A required for all solicitations • Penalties for non-compliance (for only contractors claiming preference?)

  23. New CDBG General Condition September 5-6, 2013 Comply with DCA’s Section 3 Policy

  24. Review HUD information at: September 5-6, 2013 http://www.hud.gov/offices/fheo/section3/section3.cfm(see especially FAQs) Link to Section 3 Brochure: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12052.pdf

  25. Contact Information September 5-6, 2013 Pam Truitt, Grants Consultant Phone: (404) 679-5240 E-Mail: pam.truitt@dca.ga.gov Michael Casper, Compliance Manager Phone: (404) 679-0594 E-Mail: michael.casper@dca.ga.gov

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