Section 3

2009 CDBG/CHIP Recipients’ Workshop

What is Section 3?

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Provision of the Housing and Urban Development Act of 1968 - 24 CFR Part 135

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Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency

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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.

2009 CDBG/CHIP Recipients’ Workshop

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Applicability

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$200K Threshold for Recipient Grant Award $100K Threshold for Construction Contracts Housing rehabilitation (including lead-based paint abatement) Housing construction Other public construction

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Who are Section 3 Residents?

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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).

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What is a Section 3 business?

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51% or more owned by Section 3 residents

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Section 3 residents make up 30% of its full time permanent staff

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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

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Eligibility for Employment and Contracting

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Section 3 resident must meet the qualifications of the position to be filled.

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Section 3 business must have the ability and capacity to perform successfully under the terms and conditions of the proposed contract.

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Recipient Responsibilities

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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

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Examples of Economic Opportunities

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Bricklaying Carpentry Carpet Installation Cement/Masonry Demolition Drywall Electrical

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HVAC Painting Pipe Installation Plastering Plumbing Roofing

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Recipient Responsibilities (cont)

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Submit HUD Form 60002 to DCA semi annually (June 30 th and December 31 st )

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Additional Section 3 information can be obtained at www.hud.gov

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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]

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