Transcript Slide 1
Section 3 Requirements
Neighborhood Stabilization Program
What is Section 3?
Section 3 of the Housing and Urban Development Act
of 1968, {12U.S.C.17001u}(section 3) and
implementing regulations at 24 C.F.R.135 states the
purpose of Section 3 of the Housing and Urban
Development Act of 1968(12U.S.C.1701u) (Section
3) is to ensure that employment and other economic
opportunities generated by certain HUD financial
assistance shall, to the greatest extent feasible, and
consistent with
Existing Federal, State and Local laws and
regulations, be directed to low-and very lowincome persons, particularly those who are
recipients of government assistance for
housing, and to business concerns which
provide economic opportunities to low-and
very low-income persons.
What Projects Must Follow the City’s Section 3
Policies?
Kansas City’s Section 3 policies are applicable
to all HUD sourced construction projects
related to:
Housing Rehabilitation
Housing Construction
Public Construction
Public Facilities
Economic Development Projects (job creating or job
sustaining)
HUD Funding Thresholds
1.
Exceeds $200,000
2.
All Contractor/Subcontractor situations
which exceed $100,000
Section 3 Applies To The Entire Project
the infusion of any HUD sourced dollars
through the City of Kansas City Missouri into
a project at any point in a project and at any
level exceeding the federal threshold triggers
the full applicability of Kansas City’s Section
3 policies to the entire project.
including parts of the project covered by other
funding sources
Kansas City’s Section 3 Goals
1.
Employment:
Thirty percent (30%) of
the aggregate number of new hires during a
one year period of the project.
2.
Contracting: (a) at least 10 percent (10%) of
the total dollar amount of all Section 3
covered contracts for building trades work
arising in connection with housing
rehabilitation, construction and other public
construction with federal funds; and (b) At
least three percent (3%) of the total dollar
amount of all other covered Section 3
contracts to eligible Section 3 business
concerns.
Key Components of a Section 3 Utilization Plan Neighborhood Stabilization Program
Designate a project Section 3 coordinator
List of subcontractor of $100,000 or more (name,
company owner, contact person, amount of contract
and %)
For each such subcontractor listed, a complete
Section 3 Utilization Plan is required
Key Components of a Section 3 Utilization Plan Neighborhood Stabilization Plan
Section 3 Employment Plan- Project new hire
opportunities and commit to a % of Section 3 hire
Attach a list of core employees
Section 3 Business Concern Utilization PlanActually list the Section business concerns to be
used on the project – date and amount and percent
of contract
Section 3 Business Concern
Utilization Plans
By Property Address
Actually list the Section 3 business concerns to
be used on the property
Address listed at the top of the form
Provide date, amount and percent of contract
Key Components of a Section 3
Utilization Plan
Section 3 Utilization Plan must be signed by
the President or Executive Director of the
PPD
Section 3 Utilization Plan will become
included in the contract documents
Certifications
All certifications are handled at the Section 3 Office for
Businesses and Residents
The List of Section 3 Business Concerns is available
on the City’s website kcmo.org
The list of Section 3 certified residents can be
obtained by contacting Section 3 Office
Section 3 Office
1601 East 18th Street, Suite 200
Kansas City, Missouri 64108
816.513.6817
Outreach
1.
Section 3 Guidelines mandate a broad
outreach process
Bid notices to be sent to all identified
Section 3 business concerns
Bid notice to be sent to organizations
identified by the City that represent
Section 3 business concerns
Required Section 3 Outreach
•
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Bid notices are to be sent to the City’s
Section 3 Office
Bid notices to be place in local
newspaper, Star, Call, Dos Mundos
Section 3 Outreach Process is to be well
documented
The Project
Section 3 signage is required
Section 3 is required for neighborhood Stabilization
projects. A sign should be placed at each property address
under construction. Each sign must be large enough to be
visible from the street. The sign must: (a) identify the
name of the housing development; (b) state “This is a HUD
Section 3 Project”; and (c) provide Primary Property
Developer contact information including name and a
telephone number.
Documentation regarding Section 3 efforts should be
maintained
Will be subject to on site compliance monitoring by the
HRD Contract Compliance Division
Accountability
The project’s designated Section 3 Coordinator
has the responsibility to gather all reports for all
subcontractors and make the project’s report to
the City’s Section 3 Office by the due date
Monthly Reports are to the Section 3 Office on
the following dates: On the 1st day of the month
following the reporting period
Accountability
• Documentation regarding Section 3 efforts
should be maintained
• Will be subject to on site compliance
monitoring by the HRD Contract Compliance
Division
Accountability
Project Close Out Report – this will be a
cumulative Section 3 report
Annual Section 3 Report 60002 – compiled by
City’s Section 3 Office and submitted to HUD
Notice of Non Compliance
HRD based upon information obtained from the
Section 3 office may issue a notice of noncompliance to the contracting entity
The contracting entity will take the appropriate
measures on behalf of the City to assure Section 3
compliance
Complaints
With the FHEO Regional VII Director-HUD
Kansas City Kansas
or
The Assistant Secretary for Fair Housing & Equal
Opportunity HUD, Washington D.C.
Filed directly with HUD
They are vigorously investigated
Place in jeopardy HUD funding to the City
Purpose of Section 3
“ensure that employment and economic
opportunities generated by certain HUD
financial assistance shall, to the greatest
extent feasible and consistent existing
federal, state and local laws and regulations,
be directed to low-and very low income
persons…”