SECTION 3 PLAN COMPONENTS

Overview

To demonstrate compliance with Section 3 regulations, awardees must contract in an amount equal to or above 10% of the total dollar amount of all housing and community development contracts for building trades workand, at least 3% of the total dollar amount of all other Section 3 covered contracts (i.e., professional services) to Section 3 Business Concerns. Similarly, 30% of all NEW employees hired for the purpose of fulfilling the new contract must be Section 3 Residents.

Identification of the Project Area

All Section 3 Plans must identify the project area where the Section 3-funded project will occur. This area will be the primary focus for all attempts to locate and hire Section 3 Residents and contract with Section 3 Business Concerns.

Information about Awardee’s Current Workforce

All awardees must provide information about their current workforce in their Section 3 Plan. This information includes how many employees are currently on staff, their job title (plumber, carpenter, etc.) their respective pay rates, copies of current payrolls, etc. in a format that is clear and easily understood.

Awardee’s Outreach Plan for Hiring Section 3 Eligible Residents

Definition of a Section 3 Eligible Resident

A “Section 3 Resident” is: 1) a public housing resident; or 2) a low- or very low-income person residing in the Metropolitan Statistical Area or Non-Metropolitan County where the Section 3 covered assistance is expended. All recipients of Section 3 funds must hire Section 3 Residents onlywhen NEW employees are needed to perform the work created by the Section 3 contract.

Section 3 Resident Outreach Plan

Awardees must develop a Section 3 Resident Outreach Plan, including efforts to train and retain Section 3 Residents within their workforce. Best practices include:

  • Publication of opportunities in newsletters or other local newspapers, including those targeted to Limited English Proficient populations.
  • Publication of opportunities on the Section 3 website maintained by HCR’s Fair & Equitable Housing Office.
  • Use of signage at the project site and flyers posted in the project area.
  • Notification of potential training or employment opportunities to neighborhood and non-profit groups, including Public Housing Authorities, servicing low- and very low-income persons.
  • Communicate opportunities to employment agencies and career centers.

Existing Section 3 Resident(s) on Payroll

If you have already hired Section 3 Residents, please list them in your Section 3 Plan as follows:

Section 3 Resident’s Name / Contact Information / Trade and Description of Work / Hourly Rate
Joseph Hawkins / 321 Avenue
Apt. 123
New York, NY 11111
(123) 456-7890
/ Mr. Hawkins is a Carpenter. Mr. Hawkins will construct the wooden floors in the individual resident units. / $35 dollars per hour
Indicate if full or part time employment

Awardee’s Outreach Plan for Hiring Section 3 Business Concerns

Definition of a Section 3 Business Concern

A Section 3 Business Concern is a business: 1) that is at least 51% or more owned by Section 3 residents; or 2) whose permanent full‐time employees include persons, at least 30% of whom are currently Section 3 residents, or within 3 years of the date of first employment with the business concern were Section 3 residents; or 3) that provides evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications in either of the two preceding qualifications.

Section 3 Business Concern Outreach Plan

In order to qualify for Section 3 funds, an awardee must develop a Section 3 Business Concern Outreach Plan. Best practices include:

  • Publication of opportunities in newsletters or other local newspapers, including those targeted to Limited English Proficient populations.
  • Publication of opportunities on the Section 3 website maintained by HCR’s Fair & Equitable Housing Office.
  • Extend invitations to Section 3 Business Concerns to relevant bidding opportunities.
  • Notification to NAACP, Urban League, the Hispanic Chamber of Commerce, and other appropriate cultural and ethnic organizations
  • Notification to State Certified Minority and Women Business Enterprises and Service-Disabled Veteran Businesses, Chambers of Commerce and Public Housing Authorities.
  • Notification of potential bidding opportunities to neighborhood and non-profit groups servicing low- and very low-income persons.

Existing Section 3 Business ConcernsHired as Subcontractors

If you have already hired Section 3 Business Concern(s), please list them below including a description of the work that they will perform with corresponding dollar amounts as follows:

Business Concern Name / Contact Information / Duties / Dollar Amount for Contract
Joe’s Plumbing, Inc. / 123 Street
New York, NY 11111
(123) 456-7890
/ Provide all plumbing services for constructed facility. / $1,000,000

Mandatory Forms to be Included in a Section 3 Plan

  • A signed “Acknowledgement of Receipt of Information Regarding Section 3 Requirements and Obligations” form (See Attachment 1);
  • A signed document relaying a firm commitment to include the “Section 3 Clause” contractual information in all contracts with third-parties (See Attachment 2); and,

After the contract is awarded, you will be asked to provide the following to the Section 3 Coordinator:

  • Copies of all publications, notices, pictures of posted notices, and any other outreach material utilized, along with a list of all Section 3 Business Concerns that responded to your outreach efforts (bid tabulations, etc.) and,
  • Copies of all advertisements of job opportunities (whether in the newspaper, online, in ethnic publications, etc.), pictures of posted notices, and any other outreach material utilized, along with a list of all Section 3 Residents that responded to your outreach efforts (e.g., submitted job applications, phone logs, etc.).

ATTACHMENT 1

Section 3 Participation Plan

Acknowledgment & Certification Form

The Awardee agrees to develop procedures designed to implement the following steps towards increased opportunities for training and employment directed to lower income residents and increase the contracting opportunities of Business Concerns within the Section 3 covered area.

I understand the responsibilities under Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. § 1701u (2014), Section 3 regulations, 24 C.F.R. §§ 135.1–.92 (1994), and hereby agree to perform my duties as ______in full compliance with these statutory provisions and the Awardee Participation Plan.

Non-compliance with the Section 3 regulations Awardee Participation Plan may result in NYS Homes and Community Renewal implementing appropriate sanctions including withholding contract payments, terminating contracts or debarment/suspension of Awardee from future Section 3 eligible award contract(s) for a determined period of time.

As chief local executive or administrative officer of Awardee, I agree to actively pursue full implementation of this program.

Signature:______

Print Name:______

Job Title:______

Awardee:______

Date:______

ATTACHMENT 2

Section 3 Clause

(Must Be Inserted in all Contracts Pursuant to the Instructions Above)

All Section 3 covered contracts shall include the following clause (referred to as the “Section 3 Clause”):

  1. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
  2. The parties to this contract agree to comply with HUD’s regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations.
  3. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applications for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
  4. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.
  5. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135.

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Sample Section 3 Plan Components