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Fair Housing and Equal Opportunity

Fair Housing and Equal Opportunity. SECTION 3 Economic Opportunities for Low Income Persons. Section 3. WHAT IS SECTION 3

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Fair Housing and Equal Opportunity

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  1. Fair Housing and Equal Opportunity SECTION 3 Economic Opportunities for Low Income Persons

  2. Section 3 WHAT IS SECTION 3 Section 3 of the Housing and Development Act of 1968, is a statutory provision which requires that to the greatest extent feasible, opportunities for training, employment, contracting and other economic opportunities be given to low and very-low income residents that reside in the project area where HUD funds are expended.

  3. Race and Gender Neutrality • Section 3 of the HUD act is race and gender neutral. • A minority business or women-owned business enterprise shall be required to present Section 3 certification to receive preference. • The preference provided by this federal act is based on income and location.

  4. Triggering The Regulation • Section 3 regulations do not require hiring or subcontracting unless it is necessary to complete the project. • Section 3 is triggered when covered projects require “new” hires or sub-contracting. • Section 3 is not an entitlement, it is an opportunity.

  5. Employment and Contracting WHO IS ELIGIBLE FOR EMPLOYMENT AND CONTRACTING? • Section 3 Residents • Section 3 Business Concerns

  6. Section 3 Residents • Residents that live in public housing or receiving public assistance. • Live in proximity to where funds are expended. • Those that meet the income level set by HUD. • A Section 3 resident must meet the qualifications of the position to be filled.

  7. Section 3 Business Concerns • Businesses that are 51 percent or more owned by Section 3 residents; • Businesses 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 firm were Section 3 residents; or • Businesses that provide evidence of a commitment to subcontract in excess of 25 percent of the dollar amount of all subcontracts to be awarded to businesses that meet the qualifications described above. • A Section 3 business concern must have the ability and capacity to perform.

  8. Section 3 Numerical Goals • 30% of all employment and training opportunities to be awarded to Section 3 residents. • 10% of all construction contracting opportunities to be awarded to Section 3 businesses. • 3% of all non-construction contracting opportunities to be awarded to Section 3 businesses.

  9. Section 3 Compliance • Sub-Recipients that fail to meet the minimum numerical goals bear the burden of demonstrating why it was not possible to do so. • Failure to comply with the requirements of Section 3 may result in a monitoring finding or sanctions that may include: debarment, suspension of funds, or limited denial of participation in CSD programs pursuant to 24 CFR Part 24.

  10. Section 3 Compliance • Direct Recipients of HUD covered funds are ultimately responsible for program implementation and reporting responsibilities. • Notify Section 3 residents and business concerns about economic opportunities. • Notify covered contractors and incorporate the Section 3 clause into contracts. • Facilitate training and employment of residents. • Award contracts to Section 3 Businesses.

  11. Section 3 Compliance • Meet annual numerical goals. • Facilitate compliance among contractors. • Document other actions taken to achieve compliance. • Submit annual HUD report to MDA.

  12. Section 3 Compliance • MDA will monitor all Sub-recipients for Section 3 compliance. • MDA will provide Section 3 technical assistance and guidance to Sub-recipients. • MDA will comply with the Section 3 reporting requirements and submit to HUD a comprehensive report annually, as part of the Consolidated Annual Performance and Evaluation Report (CAPER).

  13. THE END

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