Section 3 HUD-Office of Fair Housing &
Equal Opportunity
https://www.youtube.com/watch?v=vptCLVYS2OY&feature=player_detailpage
National Average
White Asian Hispanic/Latino
African American
-1.50%
0.50%
2.50%
4.50%
6.50%
8.50%
10.50%
5.50%
4.70%4.00%
6.60%
10.40%Nationwide Unemployment Rates, February 2015
White American Indian-0.50%
1.50%
3.50%
5.50%
7.50%
9.50%
11.50%
6.90%
11.30%
National Unemployment Rates, 2013
Covered Recipients
Public and Indian Housing
Housing and Community Development
Public and Indian Housing
All PHAs*
•No minimum size
No $
Threshold
•All contracts
Public and Indian Housing
• Give preference to Section 3 Persons and Businesses in training, employment, contracting, economic opportunities
Use developme
nt, operating
and modernizat
ion assistance
…• Applies regardless of size
or number of units• Applies to contractors
awarded with PIH funds regardless of contract amount
No Threshold
Housing and Community Development Assistance
Recipients of HUD HCD Funds-$200,000 +Contractors/subcontractors of HUD HCD Funds-$100,000+
Perform Development, Renovation, Rehabilitation, Modernization
Trigger Section 3 Responsibilities:Training, employment, contracting, economic opportunities with preference to Section 3 Residents and Section 3 Business Concerns
Housing and Community
Development Funds
Housing rehabilitation,
new construction &
other public construction
Recipient Threshold= $200,000
TRIBAL EMPLOYMENT & CONTRACT PREFERENCE?
Section 3 Resident
•Public Housing Resident•Up to 80% Area Median Income
What is a Section 3 Resident?
Section 3 Business Concern
•51% Owner•30% FTE•25% Subcontract
What is a Section 3 Business Concern?
Section 3 Requirements• Residents• Business Concerns• Contractors
Notification:
• Section 3 ClauseContrac
ts:• Training, Employment &
Preference for Section 3 Residents
• Contracts and Preference for Section 3 Business Concerns
Hiring/Awards:
All Requirements: Documentation & Reporting
Measuring Compliance with Section 3Greatest Extent
FeasibleNumerical Goals Best Efforts
Numerical Goals
30% of total number of new
hires
Employment of Section 3 Residents at all job levels
Numerical GoalsContracts to Section 3
BusinessesAt least 10% of the total dollar
amount of all Section 3 contracts for building trades
work
At least 3% of the total dollar amount of all Section 3
contracts for non-construction work
Reporting Requirements
Sub-recipients, contractors and sub-contractors report to
Recipients
Recipients Submit Form 60002 to HUD
See HUD Section 3 website for certification forms!
More Resources:
www.hud.gov/section3
NEW!! Section 3 Proposed Rule
60-day public comment period
Go to http://www.huduser.org/portal/economicOpportunities.html