Transcript Bid, Review and Award Process for HUD Funded Contracts

City of Memphis
Department of Housing and Community Development
SCIF Workshop – 28 September 2012
SECTION
OVERVIEW
WHAT IS SECTION ?
Section 3 of the Housing and Urban Development
Act of 1968 is HUD’s directive for providing
preference to low- and very-low income residents of
the local community (regardless of race or gender)
and businesses that substantially employee these
persons for new employment, training, and
contracting opportunities resulting from HUDfunded projects.
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WHY SECTION ?
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HUD allocates substantial funding for projects and
activities that produce significant employment and
other economic opportunities.
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Recipients of housing assistance and low income
individuals often have restricted access to employment
and other economic opportunities.
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HUD funding can offer an effective means of
empowering low-income individuals.
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HUD wants HUD money to benefit local residents
where HUD funds are expended.
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SECTION POLICY & PURPOSE
To ensure that economic opportunities generated
from HUD-funded projects will, “to the greatest
extent feasible,” be directed to low- and very-low
income persons – particularly those receiving
assistance for housing.
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COMMITMENT TO SECTION
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The City of Memphis, Division of HCD, as a grantee
and/or recipient of federal funds, is required by HUD to
develop and implement a Section 3 program.
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The City of Memphis, Division of HCD embraces the
spirit and intent of its obligations under Section 3.
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The City of Memphis, Division of HCD requires
applicable grant recipients (developers, contractors,
subcontractors and others) engaged in projects
awarded with funds sourced from the U. S. Department
of Housing and Urban Development to adhere to all
provisions of Section 3.
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SECTION COVERED PROGRAMS
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Community Development Block Grant (CDBG)
Home Investment Partnership Program (HOME)
Capital Fund Program (CFP)
Community Housing Development Organization Program
(CHDO)
Housing Opportunities for Persons with AIDS (HOPWA)
Economic Development Initiative (EDI)
Brownfield Economic Development Initiative (BEDI)
Emergency Solutions Grants (ESG)
Homeless Assistance
University Partnership Grants
Neighborhood Stabilization Program (NSP)
Certain grants awarded under HUD Notices of Funding
Availability (NOFAs)
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SECTION APPLICABILITY
Section 3 requirements apply to contracting, employment,
training, and other economic opportunities arising in
connection with HUD-funded construction projects involving:
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Housing Construction
Housing Reconstruction or Conversion
Housing Rehabilitation (including reduction and abatement
of lead-based paint hazards, but excluding routine
maintenance, repair and replacement)
Demolition
Other public construction: roads, sewers, community
centers, senior centers, etc.
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SECTION TRIGGERS
Section 3 is triggered when:
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HUD-funded project exceeds $200,000
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Grant recipient (contractor, subcontractor and other) is
awarded grant contract in excess of $100,000
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Normal completion of construction and rehabilitation
projects creates the need for new employment,
contracting or training opportunities
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SECTION GOALS
Contracting
At least 10% of the total dollar amount of the
project awarded to Section 3 businesses
Employment
At least 30% of the new positions filled with
Section 3 residents
*Grant recipients will receive assistance with
identifying Section 3 businesses and residents.
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SECTION REQUIREMENTS
SCIF applicants and award recipients are required to :
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Submit a Section 3 plan with commitment
statements to meet Section 3 goals
Document all efforts toward meeting Section 3
goals
Maintain records and make documents available for
monitoring and compliance reviews
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QUESTIONS / INFORMATION
All questions and requests for additional information
will be addressed at the Section 3 table immediately
after this session.
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