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Section 3. What is Section 3?. Provision of the Housing and Urban Development Act of 1968 - 24 CFR Part 135 Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency

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Presentation Transcript
what is section 3
What is Section 3?
  • Provision of the Housing and Urban Development Act of 1968 - 24 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.

Section 3

applicability
Applicability
  • $200K Threshold for Recipient Grant Award
  • $100K Threshold for Construction Contracts
  • Housing rehabilitation

(including lead-based paint abatement)

  • Housing construction
  • Other public construction

Section 3

who are section 3 residents
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).

Section 3

what is a section 3 business
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

Section 3

eligibility for employment and contracting
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.

Section 3

recipient responsibilities
Recipient Responsibilities
  • Notify Section 3 residents and businesses
      • Newspaper Ads
      • Post announcements at Public Housing Authority office
  • 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
  • Document compliance

Section 3

examples of economic opportunities
Bricklaying

Carpentry

Carpet Installation

Cement/Masonry

Demolition

Drywall

Electrical

HVAC

Painting

Pipe Installation

Plastering

Plumbing

Roofing

Examples of Economic Opportunities

Section 3

recipient responsibilities cont
Recipient Responsibilities (cont)
  • Submit HUD Form 60002 to DCA semi-annually (June 30th and December 31st)
  • Additional Section 3 information can be obtained at www.hud.gov

Section 3

contact information
Contact Information

Pam Truitt, Grants Consultant

Phone: (404) 679-5240

E-Mail: [email protected]

Rick Huber, Compliance Manager

Phone: (404) 679-3174

E-Mail: [email protected]

Crystal Shelly, Grants Consultant

Phone: (404) 679-1582

E-Mail: [email protected]

Section 3

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