Section 3

SECTION 3

 

 

The purpose of Section 3 is to assure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with federal, state and local laws and regulations, be directed to low and very low income persons, particularly those who are the recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very low income persons.

 

DEFINITIONS

 

Section 3 Resident:

 

*    Section 3 residents are Public Housing (or Section 8) residents or

*    persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD income limits.

 

Section 3 Business:

 

A business that:

 

*    is 51 % or more owned by Section 8 residents; or

*    employs Section 3 residents for at least 30% of its full-time, permanent staff; or

*    provides evidence of commitment to subcontract to Section 3 business concerns 25% or more of the dollar amount of the awarded contract.

 

Low Income Person:

 

*    A single individual or a family whose household income does not exceed 80% of the median income for the area, with adjustments for larger and smaller families.

 

Very Low Income Person:

 

*    A single individual or a family whose household income does not exceed 50% of the median income for the area, with adjustments for larger and smaller families.

 

Area:

 

*    Area means the Harrisburg-Carlisle Metropolitan Statistical Area (MSMA) which includes Dauphin, Cumberland and Perry Counties

 

 

 

 


Neighborhood:

 

*  For purposes of the Housing Authority Section 3 activities, neighborhood means              Dauphin County, Pennsylvania.

 

SECTION 3 CLAUSE

 

Every contractor and subcontractor shall incorporate, or cause to be incorporated, in all contracts for work in connection with a Section 3 covered project, the following clause:

 

A.  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.

 

B.  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.

 

C.  The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other contract of understanding, if any, a notice advising the said 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 applicants 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.

 

 D.  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.

 

 

E.    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.

 

F.    Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

 

G.   With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract.  Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.  Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SECTION 3 REQUIREMENTS FOR CONTRACTORS AND SUBCONTRACTORS

 

To the greatest extent feasible:

 

1.    Provide employment and training opportunities to Section 3 residents by meeting the following percentage goals:

 

* 10% of the aggregate number of new hires for the one year period beginning in FY 1995

* 20% of the aggregate number of new hires for the one year period beginning in FY 1996

* 30% of the aggregate number of new hires for the one year period beginning in FY 1997 and continuing thereafter.

 

2.    Provide subcontracting opportunities to Section 3 businesses by meeting the following percentage goals:

 

* At least 10% of the total dollar amount of all Section 3 covered contracts for building trades work for maintenance, repair, modernization or development of public housing, or for building trades work arising in connecting with housing rehabilitation, housing construction and other public construction; and

 

At least 3% of the total dollar amount of all other Section 3 covered contracts.

 

3.    Where applicable, notify labor unions and organizations of the contractor's commitments under Section 3.

 

4.    Post notices conspicuously at all Section 3‑covered work sites describing:

 

*    the Section 3 Preference

*    the minimum number and job titles subject to hire

*    apprenticeship and training positions available; the qualifications for each; and the name and location of the person taking applications

*    the anticipated start date of the work

 

5.    Include the Section 3 requirements clause in all applicable subcontracts

 

6.    Take appropriate action if a subcontractor violates the Section 3 regulation.

 

7.    Not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the Section 3 regulation.

 

8.    Certify that the contractor did not circumvent the Section 3 employment opportunity requirements, if the contractor hired any persons not covered by Section 3 between the time the contractor was selected and the contract was executed.

 

Note:       Section 3 applies to "new hires”, defined as persons in new employment opportunities, at all levels, generated from the expenditures of Section 3 covered assistance.  The interim rule defined new hires to mean full‑time positions that are permanent, temporary or seasonal.

 

SECTION 3 PLAN

 

 

Section 3 of the Housing and Urban Development Act of 1968 is HUD’s legislative directive for providing preference to low and very low income residents of the local community (regardless of race or gender) and the businesses that substantially employ these persons, for new employment, training and contracting opportunities resulting from HUD-funded projects.

 

The Section 3 Program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment and contracting opportunities for low or very low income residents in connection with project and activities in their neighborhoods.

 

The Housing Authority of the County of Dauphin is a “covered” agency which receives financial assistance directly from HUD.  For that reason, certain  Housing Authority’s programs including the Public Housing Operating Fund and the Public Housing Modernization funding years are all subject to the requirements of Section 3.

 

Section 3 is triggered when the normal completion of construction and rehabilitation projects creates the need for new employment, contracting or training opportunities.

 

The types of economic opportunities available under Section 3 including the following:

 

*     job training

*     employment

 *    contracts

 

Any employment resulting from these expenditures, including administration, management, clerical support and construction, is subject to compliance with Section 3.

 

Definitions:

 

Section 3 Residents are:

 

*     Public Housing Residents, or

 

*     Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD’s Section 8 low income limits, i.e. at or below 80% of the median income of the area as adjusted for family size.

 

 

 

 

 

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Section 3 Business Concern:

 

A business that:

 

*     is 51% or more owned by Section 3 residents;

 

*     employs Section 3 residents of at least 30% of its full-time, permanent staff; or

 

*     provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract.

 

Contractor:

 

A contractor is any entity which contracts to perform work generated by the expenditures of Section 3 covered assistance, or for work in connection with a Section 3 covered project.

 

Subcontractor:

 

Subcontractor means any entity (other than a person who is an employee of the contractor) which has a contract with a contractor to undertake a portion of the contractor’s obligation for the performance of work generated by the expenditure of Section 3 covered assistance, or arising in connection with a Section 3 covered project.

 

Neighborhood:

 

For purposes of this Section 3 Plan, “Neighborhood” means Dauphin County.

 

New Hires:

 

New hires means full-time employees for permanent, temporary or seasonal employment opportunities.

 

Section 3 Covered Activity:

 

Section 3 covered activity means any activity which is funded by Section 3 covered assistance including the Public Housing Program and the Capital Fund Program.

 

Section 3 Clause:

 

The contract provisions set forth in 24 CFR 135.38.

 

 

 

 

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The Authority’s Responsibilities Pursuant to Section 3:

 

These responsibilities include the following:

 

*     notification of Section 3 residents and business concerns about training, employment and contracting opportunities generated by Section 3 assistance;

 

*     notifying potential contractor working on Section 3 covered projects of their responsibilities;

 

*     incorporating the Section 3 Clause into all covered solicitations and contracts;

 

*     facilitating the training and employment of Section 3 residents and the award of contracts to Section 3 business concerns;

 

*     assisting and actively cooperating with the U.S. Department of Housing and Urban Development in making contractors and subcontractors comply;

 

*     refraining from entering into contracts with contractors that are in violation of Section 3 regulations;

 

*     documenting actions taken to comply with Section 3; and

 

*     submitting Section Annual Summary Reports (form HUD-60002) in accordance with 24 CFR Part 135.90.

 

Hiring Responsibilities of the Recipient, Contractors and Subcontractors

 

*     Section 3 requires that the recipient (the Housing Authority), its contractors and their Subcontractors, to the greatest extent feasible, provide employment opportunities to low and very low income persons, including permanent employment and long-term jobs.

 

Goals:

 

*     The Authority’s Section 3 Program will endeavor to provide employment and training opportunities to Section 3 persons for 30% of the aggregate number of new hires annually.

 

*     The Housing Authority’s Section 3 Program will endeavor to award at least 10% of the total dollar amount of all Section 3 covered contracts for building trades work for maintenance, repair, modernization or development of Public Housing, or for building trades work arising in connection with housing rehabilitation.

 

 

 

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housing construction and other public construction; and at lease 3% of the total dollar amount of all other Section 3 covered contracts.

 

Note:      Section 3 applies to “new hires”, defined as persons in new employments opportunities, at all levels, generated from the expenditures of Section 3 covered assistance.  “New hires” is further defined to mean full-time positions that are permanent, temporary or seasonal.

 

It is understood that the Housing Authority’s legal obligation to hire administrative personnel through the Pennsylvania Civil Service System places a constraint on its flexibility to hire Section 3 eligible persons for such positions.

 

It is also understood that the Housing Authority will not be forced through this Section 3 Program to hire any persons who are not needed to carry out its administrative and programmatic responsibilities.  It is further understood that the Housing Authority’s contractors are not required by this Section 3 Program to hire any workers who are not needed to carry out their contractual responsibilities with the Housing Authority.

 

Section 3 eligible residents also must be qualified for the position for which they are requesting consideration.  This obviously does not apply to training programs; however, the Section 3 eligible resident must make a sincere effort to learn the trade or task the training program is offering or risk being dropped from the program.

 

Identifying Section 3 Businesses and Residents:

 

The Housing Authority will endeavor to identify Section 3 businesses and residents located in the Dauphin County area.  The following are various ways in which the Housing Authority may attempt to identify Section 3 businesses in the Dauphin County area:

 

*     Advertising in local newspapers inviting Section 3 businesses, as defined in the advertisement, to contact the Housing Authority in order to be placed on a list of Section 3 businesses.  Such businesses would be contacted when a contractual opportunity arises that such a business would be interested in.

 

*     Develop a working relationship with local job training, employment and business development organizations, for example, in order to provide a source of referral for Section 3 residents and businesses.

 

*     Develop Section 3 informational materials (e.g. flyers, press releases, fact sheets, brochures) that inform the public and potential beneficiaries of the Authority’s Section 3 policy.

 

*     Providing informational materials to the Housing Authority’s Public Housing residents and Section 3 participants regarding the Section 3 Program and Section  3 opportunities.

 

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*     Connect the Housing Authority’s existing Family Self-Sufficiency Program with the Section 3 Program.

 

Interaction with Contractor regarding Implementation of Section 3 hiring:

 

Upon award of a Section 3 covered contract, the Housing Authority will discuss with the Contractor whether the Contractor will need to hire any new employees in order to carry out the contract work.  If the Contract indicates that it will be necessary to hire new employees for the contract work, the Authority and the Contractor will then identify what specific positions are needed and how many.  The Authority will then check its list of eligible Section 3 residents to determine whether any have the skills needed for the contract work and, if so, advise the Section 3 residents to contact the Contractor.  The Contractor will be expected to give the Section 3 resident serious consideration for the positions available.

 

The Authority will also discuss with the Contractor the possibility of training programs or perhaps on-the-job training for those Section 3 residents who do not possess the skills required for a position but who are willing to learn.

 

Contact with Resident Councils:

 

The Housing Authority will discuss Section 3 requirements with resident councils in its buildings and developments and request their assistance in notifying residents of Section 3 training and employment opportunities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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HOUSING AUTHORITY OF THE COUNTY OF DAUPHIN

 

SECTION 3 RESIDENT CERTIFICATION

                                                                                 

 

 

Section 3 of the Housing and Urban Development Act of 1968, as amended, requires recipients of HUD funding make a good faith effort to provide employment and training opportunities resulting from an assisted project to low and very low income persons.

 

In order to demonstrate that you meet the definition of a low or very low income person, please provide one of the following:

 

1.    proof of residency in a Public Housing building or development;

2.    a copy of your Section 8 Voucher;

3.    evidence of your eligibility or participation in a federally-assisted program for low and very low-income persons (e.g. Jobs, JTPA, Job Corps, etc.);

4     evidence of your eligibility or participation in a state or local assistance program for low- or very-low income persons or receipt of AFDC.

5.    income tax records

6.    other evidence of income

 

Name________________________________________________________________________________

 

Address______________________________________________________________________________

 

 I certify that I meet the requirement to be considered a Section 3 Resident.  I have provided the following document  to demonstrate evidence of this___________________________________________________.

 

 

Signature__________________________________________________ Date ______________________

 

 

 

 

 

 

 

 

 

 

                 

 

 

 

 

 

 


HOUSING AUTHORITY OF THE COUNTY OF DAUPHIN

 

SECTION 3 CONTRACTOR CERTIFICATION

 

 

Name of Contractor:      _________________________________________________________________

 

Address of Contractor:  _________________________________________________________________

 

Type of Business:   ___ Corporation    Incorporated in State of _________________________    

     (Check one)

              ___ Sole Proprietorship ___ Partnership           ___ Joint Venture

 

Name(s) and Titles     ___________________________________________________________________

of Owners:

          ___________________________________________________________________

 

Year Business Formed: __________________________     Number of Employees___________________

 

 

I certify that the firm_________________________________________________  (company’s name) is a bonafide Section 3 firm, and that it meets the following definition of a Section 3 business (check one):

 

____    51% or more of the ownership of this company is owned by Section 3 residents,

                          as defined by HUD

 

____    Currently, at least 30% of the employees of the company are Section 3 residents,

                          as defined by HUD

 

____    At least 25% of the subcontracts for this contract are or will be subcontracted to Section 3

                businesses, as defined by HUD

 

Note:        Section 3 residents are Public Housing residents or persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD income limits, i.e. at or below 80% of the median income of the area.  (See attached FY 2012 Income Limits Summary)

 

Area is defined as the Harrisburg, Carlisle SMSA including Dauphin, Cumberland and Perry Counties.

 

Signature___________________________________________________    Date____________________

 

Printed Name________________________________________________

 

Attest or Witness_____________________________________________

 

 cg/C:/corel/my files/Section 3/Section 3 Contractor Certification/ 5-31-2012