1. Section 3 Reporting Requirements State of California Department of Housing and Community Development

2. HCD-PJ Responsibility • File HUD 60002, Section 3 Summary ReportEconomic Opportunities for Low- and Very Low-Income Persons (OMB No. 2529-0043) • For each grant/loan provided over $200,000 • On housing rehabilitation and construction, or other public construction activities/projects • Comply with (24 CFR sections 135.3(a) and 135.90) and OMB A133.

3. HCD Filing Compliance • HCD received A133 Audit Findings • No methodology to ensure all Contractors Filed • Submitting Inaccurate information • HCD HOME now has 100% Compliance • 3 years • HCD CDBG’s Grantees - Needs to Improve • 65% Compliance

4. PJ/HCD Responsibility • Ensure Our Contractors File a Report Annually • Run a list of All Active/Open Grants/Loans • Narrow that list to All Rehabilitation and Construction Activities/Projects • Send a reminder 30 days Prior to Due Date • Send Emails if not received • Set up compliance consequence for not filing

5. PJ/HCD Responsibility Continued • Submit Accurate and Complete Information • HOME Created our own Section 3 Report • More Details to verify calculations and percentages • Includes Pop-ups to help guide our customers • Added date contract executed to avoid duplicate reporting from year to year • Incorporated staff and Management verifications

6. State Recipient/ CHDO Filing Requirement • Program Section 3 Report Annually • Construction and Rehabilitation Activities • PJ/HCD Provides Contract > $200,000 • Contractors over $100,000 must File • Filed through year Project Completed in IDIS

7. HCD Issues with Reports • Introduction (Page 1) –All contractors or subcontractors with $100,000 contracts need to be listed • Assist everyone identify who needs to file • Forward Report and Collect from these contractors. (not just current year contracts) • Part I – Employment & Training • New Hires or Section 3 Employees • Hours occasionally not reported

8. HCD Issues with Reports, continued • Part II – Contracts Awarded • Differences in Contract Amounts – use original – not after change orders • Contracts listed entered that were into in other than reporting Fiscal year. • Part III – Summary • Not all Questions Answered

9. Remember – Do it Right the First Time • Program Reps are available to assist • Use the Current Report Form • Read the Directions • Review Help Tools on HOME’s Website • Ensure Contractors with contracts greater than $100,000 submit Report • Verify accuracy before filing! • File on time (HCD has a lot of work)

10. Section 3 Report Forms can be found on HCD website: HOME http://www.hcd.ca.gov/fa/home/fiscalindex.html CDBG http://www.hcd.ca.gov/fa/cdbg/FormsReports.html