HomeMy WebLinkAboutRES 12-231 RESOLUTION NO. 12-231
A RESOLUTION OF THE CITY OF BEAUMONT, TEXAS TO
ADOPT A SECTION 3 POLICY IN ACCORDANCE WITH 12
U.S.C. 1701 u, SECTION 3 OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1968 AND TO APPOINT THE CITY
MANAGER AS THE SECTION 3 COORDINATOR.
WHEREAS, the City's participation in the Community Development Block Grant
(CDBG) Program requires that it strive to attain goals for compliance with Section 3
regulations in accordance with 12 U.S.C. 1701u, Section 3 of the Housing and Urban
Development Act of 1968 by increasing opportunities for employment and by contracting
with Section 3 residents and businesses within its jurisdictional boundaries in accordance
with an adopted Section 3 Policy;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
That the City Council hereby resolves to adopt a Section 3 Policy in Accordance with
12 U.S.C. 1701 u, Section 3 of the Housing and Urban Development Act of 1968, attached
hereto as Exhibit "A," and made a part hereof for all purposes, and appoints the City
Manager to coordinate the City's Section 3 Policy.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 2nd day of
October, 2012. �ke
ayor Becky Ames -
A t:
Tina Broussard, City Clerk ' ��
City of Beaumont
Section 3 Policy
"Using an effective program under Section 3 of the Housing and Urban Development Act of
1968 may help members of protected classes gain economic opportunities necessary to allow
them to exercise fair housing choice."
EXHIBIT"A"
Table of Contents
Item F e No.
1
Table of Contents
z
General Polic statement
2
Section 3 P ose
2
A li
mbility
3-4
Section 3 Definitions
S
Com fiance with Section 3
S
Section 3 Residents
Section 3 Business Concern 6
6
Section 3 Proference
7
Section 3 Clause
R ortin R uirements
7
7
Ca faint Process
Exhibit A: Resident Em to ment ormni ity Data
8-9
Exhibit B: Certification for Business Concerns
10
Exhibit C: Contractor Certification off Rs to Fuil Co 1
11
Exhibit D: Examples of Efforts To Offer Training and Em to meat Onnortunities 12-13
Exhibit E: Exam les of Procurement Procedures for Section 3.Business Concerns 14-16
17-18
Exhibit F: Section 3 Clause
Exhibit G: Contractor's Monthl Co fiance R ort
19-20
Exhibit H: Com taint Re 'ster
21-2a
1
General Policy Statement
It is the policy of the(Client)(City)to comply with the requirements of Section 3 of the Housing and Urban
Development Act of 1968,as amended(12 U.S.C. 1701 u).
Section 3 Purpose
Section 3 of the Housing and Urban Development Act of 1968,as amended,requires the City to ensure that
training, employment and other economic opportunities generated by certain HUD financial assistance shall
be directed, to the greatest extent feasible, and consistent with existing Federal, State and Local laws and
regulations,to low-and very low-income persons.
The City will make every effort to ensure that contractors of Section 3-covered funding ensure their own
compliance and the compliance of their/subcontractors with the Section 3 requirements,as outlined in
24 CFR x'135.32.
Key provisions to achieve this goal include:
The plan will delineate how the City intends to comply with Section 3 in its own operations and
ensure compliance in the operations of its contractors and their subcontractors. The Section 3
Plan will cover:
• Training on Section 3;
• Outreach, compliance, and reporting methods regarding employment,job training and
contracting opportunities for Section 3 residents and/or businesses;
• The identification of a Section 3 Coordinator(s) to ensure compliance and
monitoring of its Section 3 activities.
The City will maintain it list of ce fied Section 3 Ruch sees. Section 3 business certifications will be
conducted on an annual basis. Section 3 Businesses will have the option to become part of a master
reference list for Recipients to use when contracting opportunities arise. Recipients should maintain a
local Section 3 business certification list as well and should not rely solely on the City list. Inclusion on
the Section 3 business list does not imply endorsement or procurement of the businesses on the list;it is
only to serve as a reference that a business may qualify as a Section 3 Business Concern.
Applicability
Section 3 requirements are triggered when HUD-sourced assistance is expended for housing rehabilitation,
housing construction or other public construction projects that are equal to or greater than$200,000
and subcontracts of such projects in the amount of$100,000 or more(see below).
Covered projects include:
* Housing Rehabilitation(to include reduction of lead-based paint hazards,and demolition);Housing
Construction(to include reduction of lead based paint hazards and demolition);Public Infrastructure(e.g.
street repair, sewage line repair or installation, updates to building facades,etc.);
• Public Facilities and Park Improvements;and,
Job creating or job sustaining Economic Development Projects as applicable.
2
Section 3 Definitions
Employment opportunities Generated by Section 3 Covered Assistance "all employment opportunities
generated by the expenditure of Section 3 covered projects (as described in §135.3(a)(2),
including management and administrative jobs connected with the Section 3 covered project. Management
and administrative jobs include architectural, engineering or related professional services required to
prepare plans, drawings, specifications, or work write-ups; and jobs directly related to administrative
support of these activities, e.g., construction manager, relocation specialist, payroll clerk, etc."(24 CFR
§135.5)
Housing and Community Development Assistance — "any financial assistance provided or otherwise
made available through a HUD housing or community development program through any grant, loan,
loan guarantee, cooperative agreement, or contract, and includes community development funds in the
form of community development block grants, and loans guaranteed under section 108 of the Housing
and Community Development Act of 1974, as amended. Housing and community development assistance
does not include financial assistance provided through a contract of insurance or guaranty." (24 CFR
§135-5)
HUD Youthbuild Programs—"programs that receive assistance under subtitle D of Title IV.of the
National Affordable Housing Act, as amended by the Housing and Community Development Act of
1992 (42 U.S.C. 12899), and provide disadvantaged youth with opportunities for employment, education
leadership development, and training in the construction or rehabilitation of housing for homeless
individuals and members of low-and very low-income families"(24 CFR§135.5)
Low-income Person—"families(including single persons)whose household incomes do not exceed 80
per centum of the median income for the area."(24 CFR§135.5)To determine if a household's income is
considered low-income,HUD's income limits may be obtained from:
hW://www huduser ore/nortaUdatasets/il html
Non-metropolitan County—"any county outside of a metropolitan area"(24 CFR§135.5)
New Hires—"a full-time employee for a new permanent, temporary, or seasonal position that is created
during the expenditure of Section 3 covered financial assistance."(24 CFR§135.5)
Section 3 Clause—"the contract provisions set forth in§ 135.38."(24 CFR§135.5)
Section 3 Covered Activity—"any activity which is funded by Section 3 covered assistance public and
Indian housing assistance."(24 CFR§135.5)
Section 3 Covered Assistance—"assistance provided under any HUD housing or community development
program that is expended for work arising in connection with: (i) Housing rehabilitation (including
reduction and abatement of lead-based paint hazards, but excluding routine maintenance,repair and
replacement); (ii) Housing construction; or (iii) Other public construction project (which in other
buildings or improvements,regardless of ownership)."(24 CFR§135.5)
Section 3 Covered Contract — "a contract or subcontract (including a professional service contract)
awarded by a recipient or contractor for work generated by the expenditure of Section 3 covered assistance,
or for work arising in connection with a section 3 covered project." (24 CFR
§135.5)
Section 3 =- "Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C.
1701u)"(24 CFR§135.1)
3
Section 3 Business Certification formA form used to document a business as a "Section 3 Business
Concern."
Section 3 Business Concern—"a business concern, (1) That is 51 percent or more owned by Section 3
residents; or (2) Whose permanent, full-time employees include persons, at least 30 percent of whom are
currently Section 3 residents,or within three years of the date of first employment with the business concern
were Section 3 residents; or (3) That provides evidence of a commitment to subcontract in excess of 25
percent of the dollar award of all subcontracts to be awarded to business concerns that meet the
qualifications set forth in paragraphs (1) or(2)in this definition of"Section 3 business concern." (24 CFR
§135.5)
Section 3 Covered Project — "the construction, reconstruction, conversion or rehabilitation of housing
(including reduction and abatement of lead based paint hazards), other public construction which
includes buildings or improvements (regardless of ownership) assisted with housing or community
development assistance."(24 CFR§135.5)
Section 3 Joint Venture—"means an association of business concerns,one of which qualifies as a Section
3 business concern,formed by written joint venture agreement to engage in and carry out a specific business
venture for which purpose the business concerns combine their efforts,resources and skills for joint profit,
but not necessarily on a continuing or permanent basis for conducting business generally, and for which
section 3 business concern(1)is responsible for a clearly defined portion of the work to be performed and
holds management responsibilities in the joint venture; and (2)performs at least 25%of the work and is
contractually entitled to compensation proportionate to its work,"(24 CFR§135.40)
Section 3 Resident — 1) a public housing resident; or 2) a low- or very low-income person
residing in the metropolitan area or non metropolitan county where the Section 3 covered assistance is
expended. (24 CFR§135.5)
Section 3 Resident Self Certification Form—form used to document a resident of a local community as a
Section 3 Resident.
Service Area—"is the geographical area in which the persons benefiting from Section 3 covered project
reside. The Service Area shall not extend beyond the unit of local government in which the Section 3
covered financial assistance is expended."(24 CFR§135.5)
Subcontractor — "any entity (other than a person who is an employee of the contractor) which has a
contract with a contractor to undertake a portion of the contractor's obligation for the performance of work
generated by the expenditure of Section 3 covered assistance, or arising in connection with a Section 3
covered project"(24 CFR§135.5)
The greatest extent feasible—"every effort must be made to comply with the regulatory requirements of
Section 3, meaning Recipients of Section 3 covered financial assistance should make every effort
within their disposal to meet the regulatory requirements. For instance,this may mean going a step beyond
the normal notification procedures for employment and contracting procedures by developing strategies that
will specifically target Section 3 residents and businesses for these types of economic opportunities."
(HUD's FAQ's):h=://goml hud aov/huc)port al/dog entAuddce?u=l ls'efaas.ndfl
Very low-income Person—"families (including single persons) whose,household income do not exceed
50 per centum of the median family income for the area.)" (24 CFR§135.5) To determine if a household's
income is considered very low-income (very low income is defined as 50% or below the median income
of that area.)HUD's income limits may be obtained from:http://www.huduser.org(portal/datasets/il.htrn1
4
Compliance with Section 3
Contractors may demonstrate compliance with the "greatest extent feasible"(CFR 24 §135.30)requirement of Section 3
by meeting HUD's numerical goals for providing training,employment, and contracting opportunities to Section 3
Residents and Section 3 Business Concerns.
The minimum numerical goals are,
30%of total number of new hires as Section 3 Residents;
10%of all awarded construction contracts,awards to Section 3 Business Concerns;
3%of all awarded non-construction contracts,awards to Section 3 Business Concerns.
Contractors and their subcontractors must ensure that, to the greatest extent feasible, contractors will make good
faith efforts to provide training, employment,and contracting opportunities to Section 3 Residents and Section 3 Business
Concerns. The numerical goals established in this section represent minimum goals and are considered safe harbor
numerical targets. Contractors are strongly encouraged to adopt numerical goals that exceed the minimum requirements.
If a Recipient falls to fully meet the Section 3 minimum numerical goals,they must be prepared to demonstrate that efforts were
made in an attempt to meet the numerical goals. Failure to meet numerical goals requires a detailed explanadon to the City.
The City will then examine the Recipient's documented efforts and provide technical assistance as necessary.However, "failure
to comply may lead to sanctions,suspension and limited denial of participation pursuant to HUD's regulations in 24 CFR Part
24,where appropriate,may be applied to the recipient or the contractor."(24 CPR§135.74)
Section 3 Residents
Residents to be given priority in hiring are those who live in the service area where a Section 3 project is located who are
either:
• Public housing residents including persons with disabilities;
• Low-income or very-low-income person(s) who live in the metropolitan statistical area(MSA)or non-metro
county area of project;
• HUD Youthbuild program participants (centers in Austin, Houston, Kendleton, El Paso, New Waverly, San
Antonio,Brownsville,and Dallas);
• Homeless,defined under McKinney Act(42 U.S.C. 11301 et seq.).
A resident seeking Section 3 preference shall submit a Section 3 Resident Certification Form (see Exhibit A for
sample) to the Recipient's Section 3 Coordinator(s) or the contractor or subcontractor to verify and approve the
certification. The Recipient's Section 3 Coordinator(s) should maintain a list of Section 3 Residents for current and/or
future Section 3 job opportunities.
HUD has clarified that a Self-Certification is an acceptable means for establishing eligibility as a Section 3
Resident. However, the City may utilize acceptable support documentation with the Section 3 Resident Certification
Form to include;
• Proof of residency in a public housing development;
• Evidence of participation in a HUD Youthbuild program operated in the metropolitan
(or non-metropolitan county)where the Section 3 covered assistance is spent;
• Copy of Section 8 voucher certificate or voucher;
• Evidence of eligibility or participation in a federally-assisted program for low- and very-low-
income persons(e.g.Jobs,JTPA,Job Corps,etc.);
• Evidence that the individual resides in the Section 3 area and is a low or very-low-income person,as
defined in Section 3(b)(2)of the U.S.Housing Act of 1937(1937 Act);
• Other acceptable documentation to the City.
5
Section 3 Business Concern
To determine if a business qualifies for Section 3 designation, the City and/or its assigned Section 3 Coordinator(s) will
perform a local Section 3 Business Concern Certification. The City and/or its assigned Section 3 Coordinator(s) will
verify and approve the certification (see sample form for a Business Concern Certification Exhibit B attached in this
policy). The City may refer to the City's Section 3 Business Certification listing to see if the applicable business is
already listed as a Section 3 Business Concern.
A Section 3 Business Concern is one that is:
• Owned by 51%or more by Section 3 Residents;or
• Employs at least 30%of employees who qualify as Section 3 Residents(or within 3 years of the date of
first employment with the business concern were Section 3 Residents);or
• Commits to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to
business concerns that meet one of the fast two qualifications above.
The City will include the"Contractor Certification of Efforts to Comply Notice"(Exhibit C),in all bid packets.
Contractors and Subcontractors must post all new hire opportunities with the local Workforce Solutions
Center and WorkinTexas.com.
Section 3 Preference
HUD requires that prefemce be given to Section 3 Residents in training and employment opportunities and preference
for contracting opportunities be given to Section 3 Business Concerns.
I. "The City and its contractors and subcontractors will provide rrefar m for Section S Resident in
training and CnUAnvmcn ormorhmities and shall direct their efforts to pro vide to the greatest extent
feasible training and employment opportunities generated from expenditure of Section 3 covered assistance
to Section 3 Residents" (24 CFR §135.34)in order ofDriori :
• Section 3 Residents residing in the service area or neighborhood in which the Section 3 covered
project is located(collectively,referred to as category I residents);
• Participants in HUD Youthbuild programs(category 2 residents);
• Where the Section 3 project is assisted under the Stewart B. McKinney Homeless Assistance Act(42
U.S.C. 11301 et seq.),homeless persons residing in the service area or neighborhood in which the
Section 3 covered project is located shall be given the highest priority;
• Other Section 3 Residents.
Types of Economic Opportunities that may arise from a Section 3 Project:
• For Public Housing Authorities, all employment opportunities generated by the expenditure of
development, operating, and modernization assistance, including management and administrative
jobs,technical,professional,construction and maintenance jobs;and jobs at all levels.
• For all others, all employment opportunities arising in connection with housing rehabilitation
(including reduction and abatement of lead base paint hazards),housing construction, or other public
construction(i.e.,management and administrative jobs, technical,professional, and construction and
non-construction jobs;and jobs at all levels).
HUD offers m=Wles of efforts that can be made to Offer Training and Employment Opportunities to
Section 3 Residents training(see Exhibit D).
A Section 3 Resident seeking the preference in training and employment provided by this part shall
6
certify, or submit evidence to the City, Contractor or Subcontractor, if requested, that the person is a
Section 3 Resident. A Section 3 Resident must demonstrate that they meet the qualifications for new
employment opportunities created as a result of the expenditure of the covered assistance.
Il. Preference for Section 3 Business Concerns in contracting oppo ' 'es (24 CFR§135.36),
Recipients,contractors and subcontractors shall detect their efforts to award Section 3 Covered contracts,to
the greatest extent feasible,to Section 3 Business Concerns in order of priority to:
• (First priority)- Business concerns that provide economic opportunities for Section 3 residents in
the service area or neighborhood in which the Section 3 covered project is located (category 1
businesses);
• (Second priority)-HUD Youthbuild programs(category 2 businesses);
• (Third Priority)-Other Section 3 Business Concerns.
HUD offers examples of efforts that can be made to Procurement Procedures that P
Provide Preference to Section 3 Residents training(see Exhibit E)
Section 3 Clause
The City will incorporate the Section 3 Clause into all solicitations and any contracts or subcontracts in
excess of$100,000(24 CFR§135.38)(See Exhibit F).
Reporting Requirements
The City shall document actions taken to comply with the employment, training and contracting
requirements of Section 3,the results of actions taken,and impediments encountered.The City will maintain
records of job vacancies, solicitation of bids or proposals, selection materials and contracting documents
(including scope of work and contract amount), in accordance with Federal and State procurement laws and
regulations. The documentation should demonstrate efforts taken towards the achievement of the Section 3
numerical goals.
Contractors and their subcontractors must submit to the City a New Hires Section 3 Monthly Compliance Report
(Exhibit I)
Complaint Process
In the event that a complaint is received; the City Section 3 Coordinator(s)will assist or work with the applicable
Contractor to obtain:
• Relevant information regarding the complaint at hand;
• Documentation used to comply with Section 3;
• Reports submitted to the City to monitor Section 3 compliance;
• All other relevant information.
Complaints will be accepted by the City using HUD's Section 3 Complaint Register Form (See Exhibit G).
7
`q�.. Texas General Land Office
Community Development Block Grant(CDBG) Exhibit A
Disaster Recovery Program
r► n,
SECTION 3
RESIDENT EMPLOYMENT OPPORTUNITY DATA
ELIGIBLITY FOR PREFERENCE
Economic opporkmities for Low and Very Low-income Persons
GranteeiSubreci ie� nt: Contract Number. fie:
ELIGIBILITY FOR PREFERENCE
A Section 3 Resident seeking the preference in training and employment provided by this part shall certify,or submit
evidence to the Subrecipient, Grantee, Contractor or Subcontractor, if requested,that the person is a Section 3
Resident,as defined in Section CFR 135.5. (An example of evidence of eligibility for the preference is evidence of
receipt of public assistance,or evidence of participation in a public assistance program.)
Section 3 Resident Certification
for Worker Seeking Preference in Training and Employment
RESIDENT COMPLETES THIS SECTION:
am a legal resident of the
and meet the income eliaibilftY guidelines#or a low-or very-
low-income person as ublished on HUD'S income limits v+rww huduser omJaort /datasets/il.html and documented
on the reverse side of this form.
My permanent address is:
I have attached the following documentation as evidence of my status:
Copy of receipt of
El Copy of Lease public assistance
Copy of Evidence of participation [] Other Evidence
in a public assistance program
Resident Signature Date
Print Name
8
SECTION 3 INCOME LIMITS
All residents of public housing developments of the Housing Authority of
Qualify as Section 3 Residents.
Alternatively,individuals residing in the
City of
or County of
Who meet the income limits set forth below,can also qualify for Section 3 status
A picture identification card and proof that illustrates applicant is a current resident of the subject area.
HUD updates area median income(AMI)annually and income limits vary by county.To find the Iatest income
limits visit HUD's website www.hudmr. /yQrUWd--a sets/i html
agww"M
Number in Household Very Low Income(50%AMD Low k=me( 0)
1 Individual
2 Individuals
3 indivicluais
4 Individuals
5 Individuals
6 Individuals
7 Individuals
8 Individuals
Signature Field Date
Print Name
9
a
Exhibit B
Texas General Land Office
Community Development Block Grant(CDBG)
Disaster Recovery Program
i
CERTIFICATION FOR BUSINESS CONCERNS
�.awtsy
Seeking Section 3 Preference in Contracting and
Demonstration of Capability
Economic Opportunities for Low and Very Low-income Persons
Grantee/Subrecipient: Contract Number: Date:
CONTRACTOR WORMAMN
Name of
Ad&m of&Wness
Type of Business: ❑ Corporation ❑ Partnership Non-Profit
❑Sole Proprietorship 1-1 Joint Venture ❑ Consortium
Attach the following documentation as evidence Tf Section 3 eligible status:
(Definition of"Section 3 Business Concern" in 24 CFR 135 describes the three alternative qualifications.)
For Business claiming status as a Section 3 reslderrt•owrred fie:
❑ Copy of resident lease ROtherevidence Copy of receipt of public assistance
Copy of evidence of participation in a public
assistance program
For business&*as applicable:
Copy of Articles of Incorporation Certificate of Good Standing
Assumed Business Name Certificate Partnership Agreement
List of owners/stockholders and%ownership Corporation Annual Report
of each appointed officers Latest Board minutes
❑ Organization chart with names and titles LJ Additional documentation
and brief function statement
For business entity claiming Section 3 status by subcontracting 25 percent of the dollar awarded to
qualified Section 3 business(es):
❑List of subcontracted Section 3 business(es)and subcontract amount
For business claiming Section 3 status,by claiming at least 3o percent oftheir worldorce are currently Section 3
residents or wen:Section 3 eligible residents whin 3 years of date of first errpioyment with the business:
❑List of all current full-time employees ❑List of employees claiming Section 3 status
PHMHA Residential lease less than 3 years Other evidence of Section 3 status less than 3
from day of employment years from date of employment
Evidence of abliky to perform successhally under the terms and conditions of the proposed contract
Current financial statement ❑Statement of ability to comply with
List of owned equipment public policy
List of all contracts for the past two years
Authorized Name and Signature Date (Corporate Seal)
Attested By: 10
Exhibit C
Texas General Land Office
4' Community Development Block Grant(CDBG)
Disaster Recovery Program Grardes/SubaedWeef.
bxkrde(Ids dbc~tln 8lrappiceble bidpeckers.
r?.
#s,
l
�,r►,". i Contractor Certification of Efforts to Fully Comolr'
with Employment and Training Provisions of Section 3
Economic Opportunities for Low and Very Low-Income Persons
THE BIDDER REPRESENTS AND CERTIFIES AS PART OF ITSBIDIOFFER THAT IT:
❑Is a Section 3 Business Concern.A Section 3 Business Concern means a business concern;
17hat is 51%or more owned by Section 3 Resident(s);or
2.Whose permanent,full-time employees include persons,at least 30%of whom are currently section 3 Residents,or
3.Thct provides evidence of a commitment to subcontract in excess of 25%of the dollar value of all subcontracts to be awarded to
Section 3 Business Concerns,that meet the qualifications set forth in paragraphs 1 or 2 herein.
is NOT a Section 3 Business Concem,but who has and will continue to seek compliance with Section 3 by certifying the following efforts
❑ beurdsiortaim.
omiRg TO°SEG"fiON 3GQNC(gtsek;ALl�flantY1❑ By contacting busine ss assistance agecontractors associations and commcenity organizations to inform them of
contracting opportunities and requestir► ce in identifying Section 3 businesses whiclh may solicit bids for a portion of the work.
By advertising contracting opportunities ons,which provide genera knfomnatlon about the work to be cordracted and where to
❑ obtain additional Information,In the comhe applicable development(sj owned and marnaged by the Housing Authority.
By providing written notice to all known Section 3 Business Concerns of contracting opportunities.This notice should be in sufficient time to
❑ slow the Section 3 Business Concerns to respond to bid invitations
❑ By following up with Section 3 Business Concerns that have expressed interest in the contracting opportunities.
By 000rdinating meetings at which Section 3 Business Concerns could be informed of specific elements of the wok for which subcontract
❑ bids are being sought
❑ By conducting workshops on contracting procedures and specific contracting opportunities In a timely manner co that Section 3 Business
Concerns can take advantage of corntracling opportunities.
EBy advising Section Business Concerns as to where they seek assistance t o such barriers financing,s inability obfofo bonding,Ines of
credit,financing,or Insurance and aiding Section 3 Businesses In qualifying g,
Where appropriate,by breaking out contract work into economically feasible units to facilitate pariicipallon by section 3 businesses.
❑ Bydeveloping and using a list of eligible Section 3 Business Concerns.
taking joint ventures with Section 3 Businesses.
D By actively supporting and under,,0
By entering into a'firsst source'hiring agreements with organizations representing Section 3 Residents.
By establishing training programs,which are consistent with the requirements of the Department of Labor,specifically for Section 3
D Residents in the building trades.
❑ By advertising employment and training positions to dwelling units occupied by Category f and 2 residents.
❑ By contacting resident councils and other resident organizations in the affected housing development to request assistance in
residents of the training and employment positions to be filled.
❑ By arranging interviews and conducting interviews on the job site.
By undertaking such continued job-training efforts as may be necessary to ensure the continued employment of Section 3
E] previously hired for employment opportunities. .J
ConbadorNsirrieffiushassNama: l DoWim Field
Signature Field
11
w#L. Texas General Land Office Exhibit D
Community Development Block Grant(CDBG)
Disaster Recovery Program
4 TrA ftaaN is
[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFRI35.92]
TITLE 24--HOUSING AND URBAN DEVELOPMENT
CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PART 135--ECONOMIC OPPORTUNITIES FOR LOW- and VERY LOW-INCOME PERSONS
Table of Contents
Appendix to Part 135
I.EXAMPLES OF EFFORTS TO OFFER TRAINING AND EMPLOYMENT OPPORTUNITIES TO
SECTION 3 RESIDENTS
(1) Entering into ' 'first source" hiring agreements with organizations representing
Section 3 residents.
(2) Sponsoring a HUD-certified Step-Up" employment and training program for
section 3 residents.
(3) Establishing training programs, which are consistent with the requirements of
the Department of Labor, for public and Indian housing residents and other section
3 residents in the building trades.
(4) Advertising the training and employment positions by distributing flyers (which
identify the positions to be filled, the qualifications required, and where to obtain
additional information about the application process) to every occupied dwelling
unit in the housing development or developments where category 1 or category 2
persons (as these terms are defined in Seca 135.34) reside.
(5) Advertising the training and employment positions by posting flyers (which identify
the positions to be filled, the qualifications required, and where to obtain additional
information about the application process) in the common areas or other prominent
areas of the housing development or developments. For HAs, post such advertising
in the housing development or developments where category 1 or category 2
persons reside; for all other recipients, post such advertising in the housing
development or developments and transitional housing in the neighborhood or
service area of the section 3 covered project.
(6) Contacting resident councils, resident management corporations, or other resident
organizations, where they exist, in the housing development or developments
where category 1 or category 2 persons reside, and community organizations in
HUD assisted neighborhoods, to request the assistance of these organizations in
notifying residents of the training and employment positions to be filled.
12
(7) Sponsoring (scheduling, advertising, financing or providing in-kind services) a job
informational meeting to be conducted by an HA or contractor representative or
representatives at a location in the housing development or developments where
category 1 or category 2 persons reside or in the neighborhood or service area of
the section 3 covered project.
(8) Arranging assistance in conducting job interviews and completing job applications
for residents of the housing development or developments where category 1 or
category 2 persons reside and in the neighborhood or service area in which a
section 3 project is located.
(9) Arranging for a location in the housing development or developments where
category 1 persons reside, or the neighborhood or service area of the project,
where job applications may be delivered to and collected by a recipient or
contractor representative or representatives.
(10) Conducting job interviews at the housing development or developments where
category 1 or category 2 persons reside, or at a location within the neighborhood
or service area of the section 3 covered projects.
(11) Contacting agencies administering HUD Youthbuild programs, and requesting their
assistance in recruiting HUD Youthbuild program participants for the HA's or
contractor's training and employment positions.
(12) Consulting with State and local agencies administering training programs funded
through JTPA or JOBS, probation and parole agencies, unemployment
compensation programs, community organizations and other officials or
organizations to assist with recruiting Section 3 residents for the HA's or
contractor's training and employment positions.
(13) Advertising the jobs to be filled through the local media, such as community
television networks, newspapers of general circulation, and radio advertising.
(14) Employing a job coordinator, or contracting with a business concern that is
licensed in the field of job placement (preferably one of the section 3 business
concerns identified in part 135), that will undertake, on behalf of the HA, other
recipient or contractor, the efforts to match eligible and qualified section 3
residents with the training and employment positions that the HA or contractor
intends to fill.
(15) For an HA, employing section 3 residents directly on either a permanent or a
temporary basis to perform work generated by section 3 assistance. (This type
of employment is referred to as ' 'force account labor" in HUD's Indian housing
regulations. See 24 CFR 905.102, and Sec. 905.201(a)(6).)
(16) Where there are more qualified section.3 residents .than there are positions to be
filled, maintaining a file of eligible qualified section 3 residents for future
employment positions.
(17) Undertaking job counseling, education and related programs in association with
local educational institutions.
(18) Undertaking such continued job training efforts as may be necessary to ensure the
continued employment of section 3 residents previously hired for employment
opportunities.
(19) After selection of bidders but prior to execution of contracts, incorporating into
the contract a negotiated provision for a specific number of public housing or
other section 3 residents to be trained or employed on the section 3 covered
assistance.
(20) Coordinating plans and implementation of economic development (e.g., job
training and preparation, business development assistance for residents) with the
planning for housing and community development.
13
Texas General Land Office Exhibit E
o� Community Development Block Grant(CDBG)
Disaster Recovery Program
III.EXAMPLES OF PROCUREMENT PROCEDURES THAT PROVIDE FOR PREFERENCE FOR
SECTION 3 BUSINESS CONCERNS
This Section III provides specific procedures that may be followed by recipients and
contractors (collectively, referred to as the ' 'contracting party") for implementing
the section 3 contracting preference for each of the competitive procurement
methods authorized in 24 CFR 85.36(d).
(1) Small Purchase Procedures. For section 3 covered contracts aggregating no
more than $25,000, the methods set forth in this paragraph (1) or the more
formal procedures set forth in paragraphs (2) and (3) of this Section III may be
utilized.
(i) Solicitation.
(A) Quotations may be solicited by telephone, letter or other informal procedure
provided that the manner of solicitation provides for participation by a
reasonable number of competitive sources. At the time of solicitation, the
parties must be informed of: pe
--the section 3 covered contract to be awarded with sufficient specificity;
--the time within which quotations must be submitted; and
--the information that must be submitted with each quotation.
(B) If the method described in paragraph (i) (A) is utilized, there must be an
attempt to obtain quotations from a minimum of three qualified sources in
order to promote competition. Fewer than three quotations are acceptable
when the contracting party has attempted, but has been unable, to obtain a
sufficient number of competitive quotations. In unusual circumstances, the
contracting party may accept the sole quotation received in response to a
solicitation provided the price Is reasonable. In all cases, the contracting party
shall document the circumstances when It has been unable to obtain at least
three quotations.
(ii) Award.
(A)Where the section 3 covered contract is to be awarded based upon the
lowest price, the contract shall be awarded to the qualified section 3
business concern with the lowest responsive quotation, if it is reasonable and no
more than 10 percent higher than the quotation of the lowest responsive
quotation from any qualified source. If no responsive quotation by a qualified
section 3 business concern is within 10 percent of the lowest responsive
quotation from any qualified source, the award shall be made to the source with
the lowest quotation.
(6) Where the section 3 covered contract is to be awarded based on factors
other than price, a request for quotations shall be issued by developing the
particulars of the solicitation, including a rating system for the assignment of
points to evaluate the merits of each quotation. The solicitation shall identify all
factors to be considered, including price or cost. The rating system shall provide
for a range of 15 to 25 percent of the total number of available rating points to
14
be set aside for the provision of preference for section 3 business concerns. The
purchase order shall be awarded to the responsible firm whose quotation is the
most advantageous, considering price and all other factors specified in the rating
system.
(2) Procurement by sealed bids (Invitations for Bids). Preference in the award of
section 3 covered contracts that are awarded under a sealed bid (IFB)
process may be provided as follow:
[[Page 7071)
(1) Bids shall be solicited from all businesses (section 3 business concerns, and
non-section 3 business concerns). An award shall be made to the qualified
section 3 business concern with the highest priority ranking and with the lowest
responsive bid if that bid-- (A) is within the maximum total contract price
established in the contracting party's budget for the specific project for which
bids are being taken, and (B) is not more than "X"higher than the total bid
price of the lowest responsive bid from any responsible bidder. "X"is
determined as follows:
x=lesser of:
When the lowest responsive bid is less 10% of that bid or$9,000.
than
When the lowest responsive bid is: 90/b of that bid, or$16,000.
At least $100,000, but less than
$200,000.
At least $200,000, but less than 8% of that bid, or$21,000.
$300,000.
At least$300,000, but less than 7% of that bid, or$24,000.
$400,000.
At least$400,000, but less than 6% of that bid, or$25,000.
$500,000.
At least$500,000, but less than $1 5% of that bid, or$40,000.
minion.
At least $1 million, but less than $2 4% of that bid, or$60,000.
mmmon.
At least $2 million, but less than $4 3% of that bid, or$80,000.
mmion.
At least $4 million, but less than $7 2% of that bid, or$105,000.
minion.
$7 million or more 1-1/2% of the lowest responsive bid,
with no dollar limit.
15
(ii) If no responsive bid by a section 3 business concern meets the
requirements of paragraph (2)(i) of this section, the contract shall be awarded
to a responsible bidder with the lowest responsive bid.
(3) Procurement under the competitive proposals method of procurement (Request
for Proposals (RFP)).
(i) For contracts and subcontracts awarded under the competitive proposals
method of procurement (24 CFR 85.36(d)(3)), a Request for Proposals (RFP)
shall identify all evaluation factors (and their relative importance) to be used to
rate proposals.
(ii) One of the evaluation factors shall address both the preference for section 3
business concerns and the acceptability of the strategy for meeting the greatest
extent feasible requirement (section 3 strategy), as disclosed in proposals
submitted by all business concerns (section 3 and non-section 3 business
concerns). This factor shall provide for a range of 15 to 25 percent of the total
number of available points to be set aside for the evaluation of these two
components.
(iii) The component of this evaluation factor designed to address the preference
for section 3 business concerns must establish a preference for these business
concerns in the order of priority ranking as described in 24 CFR 135.36.
(iv) With respect to the second component (the acceptability of the section 3
strategy), the RFP shall require the disclosure of the contractor's section 3
strategy to comply with the section 3 training-and employment preference, or
contracting preference, or both, if applicable. A determination of the contractor's
responsibility will include the submission of an acceptable section 3 strategy.
The contract award shall be made to the responsible firm (either section 3 or
non-section 3 business concern) whose proposal is determined most
advantageous, considering price and all other factors specified in the RFP.
16
Exhibit F
w Texas General Land Office
Community Development Block Grant(CDBG)
.� Disaster Recovery Program
Code of Federal Regulations
Title 24-Housing and Urban Development
Volume:1
Date:2003-04-01
Original Date:2003-04-01
Title:Section 135.38-Section 3 Clause
Context:Title 24-Housing and Urban Development.Subtitle B-Relating to Housing and Urban
Development.Chapter 1-Office of Assistant Secretary for Equal Opportunity,Department.Part 135
Economic Opportunities for Low-and Very Low-Income Persons.Subpart B-Economic Opportunities for
Section 3 Residents and Section 3 Business Concerns.
§135.38 Section 3 clause.
All section 3 covered contracts shall include the following clause(referred to as the section 3 clause):
A.The work to be performed under this contract is subject to the requirements of section 3 of the
Housing and Urban Development Act of 1968,as amended,12 U.S.C.1701u(section 3).The purpose
of section 3 is to ensure that employment and other economic opportunities generated by HUD
assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be
directed to low- and very low-Income persons, particularly persons who are recipients of HUD
assistance for housing.
B.The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135,which
implement section 3. As evidenced by their execution of this contract, the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 135 regulations.
C.The contractor agrees to send to each labor organization or representative of workers with which the
contractor has a collective bargaining agreement or other understanding,if any,a notice advising the
labor organization or workers'representative of the contractor's commitments under this section 3
clause, and will post copies of the notice in conspicuous places at the work site where
employees and applicants for training and employment positions can see the notice.The notice shall
describe the section 3 preference, shall set forth minimum number and job titles subject to hire,
availability of apprenticeship and training positions, the qualifications for each; and the name and
location of the person(s)taking applications for each of the positions;and the anticipated date the
work shall begin.
D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR part 135,and agrees to take appropriate action,as provided in an
applicable provision of the subcontract or in this section 3 clause,upon a finding that
subcontractor is in violation of the regulations in 24 CFR part 135.The contractor will not subcontract
with any subcontractor where the contractor has notice or knowledge that the subcontractor has
been found in violation of the regulations in 24 CFR part 135.
17
E.The contractor will certify that any vacant employment positions,including training positions,that
are filled (1)after the contractor is selected but before the contract is executed,and (2)with persons
other than those to whom the regulations of 24 CFR part 135 require employment opportunities to
be directed.were not filled to circumvent the contractor's obligations under 24 CFR cart 135.
F.Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions,termination of this
contract for default,and debarment or suspension from future HUD assisted contracts.
G.With respect to work performed in connection with section 3 covered.Indian housing assistance,
section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also
applies to the work to be performed under this contract.Section 7(b) requires that to the greatest
extent feasible (i) preference and opportunities for training and employment shall be given to
Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian
organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the
provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent
feasible,but not in derogation of compliance with section 7(b).
18
�a�"` ` Texas General Land Office
Exhibit G
a o Community Development Block Grant(CDBG)
* Disaster Recovery Program
� rr
r,
e
•4vaMEn''
NEW HIRES SECTION 3
MONTHTLY COMPLIANCE REPORT
g
Economic OpporWiles for Low and Very low-income Persons
This form is disiftled to the General Contracbar(GC)at the Pre-Construction ring.GC is also mgt*W to provide this forrn to any subcontractor
that they anticipate hiring for this project,
CONTRACTOR IWORMAWN
Name of Business:
Addrea of INusir>eas:
AWwrbod RWasenhive for this contnut
Authorized Signfty:
ADDITIONALLY,PLEASE REVIEW AND COMPLY WITH STEPS 1-3 BELOW:
1.You must ft and_date-this form for the each applicable reporting month in connection with awarded project and delver to:
2.When you hire a Section 3 resident in connection with this project,you must also complete this form and submit it to the Section 3
Coordinator identrlied above.Even ifthwe were no nowhiraft form must be on iftid and 110 teed tothe Seclim 3 Coardindar
ideated above.
I have not hired any new employees during the reporting Month specified.
I have hired D Section 3 employees and/or 1-1 non-Section 3 employees during the reporting month shown here.
The following is a list of the new hires and the tries:
New Hire Nanre Job Categmy/Trade Fuld m?Yes or No
1.
2.
3.
4.
19
I have taken one or more of the following recruitment steps to hire a Section 3 Resident with the highest training and employment priority
ranking.ProvWe a brief description of actions taken:
I have taken steps to find a Section 3 Resident in the applicable targeted areas where the project(s)/assistance will take place. List
❑ Placed signs or posters at prominent places in each of the above listed areas. Fhdpgratsaere&#wbol=m9dMactiar-
I have advertised to fill vacancy(ies)at the site(s),where work is taking place,in connection with this project.
List adv+erdsormb(name publication,e4 Workin Twa Houston sWa'mss):
❑ Distdbuted employment flyers to the administrative office of the local Public Housing
❑ Provided notice of positions available to the Texas Workforce Commission for potential applicants. Pm*bc pycfr*a
❑ Contacted employment referrals or Youthbuild Program referrals.List contacts:
❑ Contacted with applicable parties to ensure that any HUD Yorthbuild programs currenW operating in the project(s)areal
assistance will take place.
❑ Kept a log of all applicants and indicate the reasons why Section 3 Residents who applied were not
❑ Retained copies of any employment applications completed by public housing,Section 8 certificate or voucher holders or other
Section 3 Residents.
❑ Sent a notice about Section 3 training and employment requirements and opportunities to labor organizations or to worker
representatives with whom our firm has a collective bargaining or other agreement.
3.Verification
I have attached proof of all checked items.
Authorized Name and Signature DateMme Field
Text
Attested By:
20
U.S.Depaft ent of Housing OMB Approval No.2529-0043 Exhibit H
Complaint Register (Expires 11/30/2010)
Under Section 3 of the Housing anti Urban Development
And Urban Development Act of 1968 Office of Fair Housing
and Equal Opportunity
Name of Complaintant(Person or organization) Home Phone
StreetAddress
Work Phone
City,State,Zip code
Agatnst whom Is this compia►nt being filed? Business Phone
Name of organization or company
Street Address
State,ZIP code
Name and Identify others(if any)who violated the law in this case
You are(check all that apply)
❑A.t.ow1very low income ❑ D.Section 3 business concern
❑ B.Public housing resident ❑ E.A representative of D
❑ C.A representative of A or B
Complaint Is against(check one or more boxes)
❑A.Applicant ❑ D.Recipient
❑ B.Sub-Recipient ❑ E.Contractor
❑ C.Subcontractor ❑ F.other(please specify)
Basis for non compliance with Section 3
n Denied Training ❑ Denied Employment ❑ Denied Contracting
What did the person you are complaining against do?(Check all that apply—provide documentation)
❑ A.Failed to meet numerical goals,as set out in ❑ G.Failed to train andfor employ Section 3
the Section 3 regulations residents
❑ B.Failed to ensure that Its contractors and ❑ H.Failed to award contracts to Section 3
subcontractors comply with Section 3 business concems
❑ C.Failed to notify Section 3 residents about ❑ I.Contracted whh a cortrac wfound to be in
training and/or employment opportunities violation of applicable statues andfo HUD
❑ D.Failed to notify Section 3 business concerns regulations
about contracting opportunities ❑ J.Failed to provide preference to Section 3
❑ E.Failed to notify potential contractors In training and o ompioyment ors for Section 3 opportunt
covered projects of the requirements of opportunities.ion 3 ❑ K.Failed to provide preferences for Section 3
E] F.Failed to incorporate the Section 3 clause in business concerns in contracting opportunities
Section 3 solicitations or contracts
When did the acts)checked above occur?(include the most recent date If several dates are involved):
21 form HUD-9S8
(11/2010)
Summarize what happened?Attach additional information if necewary
Date:
22 form HUD-958
(11/2010)
Instructions for the Complaint Register
Section 3 of the Housing and Urban Development Act of 1968
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time
for reviewing Instructions, searching existing data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information. This agency may not collect this information, and you are not required to
complete this form, unless it displays a currently valid OMB number.
The information is given voluntarily and provides the basis for HUD's investigation of the complaint to determine If the
allegations of noncompliance are valid. The Department will use the information provided as the basis for its
determination of jurisdiction over a complainant's allegations. All information collected complies with the Privacy Act
of 1974 and OMB Circular A-108.The information is not of a sensitive nature.The information Is unique to the processing
an allegation of noncompliance with the Section 3 statute or implementing regulations.
This form is to be used to report allegations of noncompliance with Section 3 of the Housing and Urban Development Act of
1968,as amended and implementing regulations at 24 CFR Part 135.
What does Section 3 of the Housing and Urban Development Act of 1968 provide?
The law describes the HUD programs directly affected by Section 3, receiving Federal financial assistance from the
Department, and dictates how these programs are to provide employment and other economic opportunities for low
and very low income persons.
What does the law cover?
Section 3 applies to any Public and Indian Housing programs that receive: (1) developmental assistance pursuant for
section 5 of the U. S. Housing Act of 1937; (2)operating assistance pursuant to section 5 of the U.S. Housing act of
1937; or (3) modemization grants pursuant to section 14 of the U.S. Housing Act of 1937, and to housing and
community development assistance extended for: (1)housing rehabilitation (including reduction and
abatement of lead based paint hazards); (2) housing construction or(3)other public construction projects; and-for
which the contract and subcontract exceeds$100,000.
What can you do about violations of the Law?
Remember, Section 3 applies to the awarding of jobs, training programs, and contracts, generated from projects
receiving HUD financial assistance. If you believe that, as a low-income person or a Section 3 business concern, the
responsibilities to provide economic opportunities under Section 3 have been violated,you have a right to file a complaint
within 180 days of the last alleged occurrences of noncompliance.
Complain to the Assistant Secretary for Fair Housing and Equal Opportunity, Department of Housing and Urban
Development, by filing this form by mail or in person. The information received will be used by HUD to determine
jurisdiction under Section 3.
HUD will send the complaint to the appropriate HUD recipient for resolution. If resolution by the recipient fails, HUD
will investigate. If HUD finds that the complaint has merit, it will try to end the violation by informal resolution. If
conciliation fails, HUD may initiate other steps to enforce the law, including but not limited to suspension and
debarment of the recipient or contractors as applicable.
You can obtain assistance in learning about Section 3 or in filing a complaint at the HUD Office listed below:
Assistant Secretary
HUD Fair Housing and Equal Opportunity
4517"Street SW
Washington, DC 20410
(202)-708-3633
23 form HUD-958
(11/2010)
Privacy Act of 1974(P.L.93-579)
Authority: Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and
Community Development Act of 1968, as amended by the Housing and Community Development Act of 1992,
Purpose:The Information requested on this form is to be used to investigate and process Section 3
Use: The information requested will be used to process a complaint filed under Part 135. HUD may disclose
certain Information for Federal, State, and local agencies when relevant to civil, criminal, or regulatory
Investigations and prosecutions. It will not be otherwise disclosed or released outside of HUD, except as
required and permitted by law.
Penalty: Failure tp provide some or all of the requested information will result in delay or denial of HUD
assistance.
Disclosure of this information Is voluntary.
24
form HUD-958
(11/2010)