SECTION 3 AGENDA WHAT IS SECTION 3? EXAMPLES OF SECTION 3 - - PowerPoint PPT Presentation

SECTION 3

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AGENDA

• WHAT IS SECTION 3?
• EXAMPLES OF SECTION 3 OPPORTUNITIES
• SECTION 3 BUSINESS REGISTRY
• OPPORTUNITY PORTAL

WHAT IS SECTION 3?

Purpose To ensure that jobs, training, and contracting generated by HUD funding shall be directed to low- and very low- income persons, particularly those who are recipients of government assistance for housing, and to businesses that substantially employ those persons.

24 CFR 135.1

Section 3 is race and gender-neutral.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WHAT IS SECTION 3?

▸ The Section 3 program requires that recipients of

certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities to Section 3 eligible residents in connection with Section 3 eligible projects and activities in their neighborhoods.

▸http://www.hud.gov/sec3BIZ

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WHAT IS SECTION 3?

▸ Section 3 applies to HUD-funded Public and Indian

Housing assistance for development, operating, and modernization expenditures.

▸ Section 3 also applies to certain HUD-funded Housing

and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WHAT IS SECTION 3?

▸ A Section 3 business:

Is 51 percent or more owned by Section 3 residents; Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WHAT IS SECTION 3?

▸ A Section 3 resident:

Is a public housing resident, or Is a low- or very-low income person in the metropolitan area or non-metropolitan county

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

KEY DEFINITIONS

▸ Recipient of Section 3 Funding:

▸ Any entity which receives Section 3 Covered Assistance directly from HUD or from another recipient

agency (Public Housing Authority or Unit of General Local Government receiving more than $200,000 from housing and community development programs);

▸ Section 3 Covered Assistance:

▸ ANY Public Housing Operating Subsidy, Capital Funds, or Modernization Assistance and any contract

funded with these funds;

▸ Housing and Community Development Assistance for Housing rehabilitation, housing construction, and

• ther public construction where the grantee receives more than $200,000 from all HUD Housing/CPD

assistance;

▸ Contractors/Subcontractors receiving covered Housing and/or Community Development funding

contracts in excess of $100,000;

▸ Section 3 Covered Project:

▸ Any project fully or partially funded with Section 3 Covered Assistance that involves construction or

rehabilitation of housing (including reduction of lead-based paint hazards), or other public construction such as street repair, sewage line repair/installation, updates to building facades, etc.;

▸ To Greatest Extent Feasible:

▸ Every effort must be made to comply with the regulatory requirements of Section 3. At a minimum

this means going a step beyond normal notification procedures for employment and contracting procedures by developing strategies that will specifically target Section 3 Residents and Business Concerns;

▸ Service Area:

▸ The geographical area in which the persons benefiting from the Section 3 Covered Project reside.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3 AND RAD

➢ Section 3 applies to all pre-development conversion costs funded with Public

Housing or other covered funds.

✓ Public Housing funds include operating, subsidy, capital, or reserves. ✓ Covered funds include HOME, CDBG, or Housing Trust Fund gap funding ➢ While receipt of Section 8 assisted funding in and of itself does not trigger

Section 3 after RAD closing, HUD has established a requirement that any work that requires rehabilitation or housing construction is subject to Section 3.

➢ Section 3 is reported by the Project Owner through post-closing completion

certification

➢ Rental Assistance Demonstration – Final Implementation, Revision 4

(Section 1.4.A.18):

https://www.hud.gov/sites/dfiles/Housing/documents/H-2019-09-PIH-2019-23_RAD_Notice%20Rev4_20190905.pdf

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3: MINNESOTA 2019 DATA

Goal 10% Goal 3% Goal 30%

▸ Accounting ▸ Architecture ▸ Appliance Repair ▸ Bookkeeping ▸ Bricklaying ▸ Carpentry ▸ Carpet Installation ▸ Catering ▸ Cement/Masonry ▸ Computer/Information ▸ Demolition ▸ Drywall ▸ Electrical ▸ Elevator Construction ▸ Engineering ▸ Fencing ▸ Florists ▸ Heating ▸ Iron Works ▸ Janitorial ▸ Landscaping ▸ Machine Operation ▸ Marketing ▸ Painting ▸ Payroll Photography ▸ Plastering ▸ Plumbing ▸ Printing Purchasing ▸ Research ▸ Surveying ▸ Tile Setting ▸ Transportation ▸ Word Processing

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

EXAMPLES OF SECTION 3 OPPORTUNITIES

All contracts for services are covered by Section 3

SECTION 3 BUSINESS REGISTRY

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3 BUSINESS REGISTRY

▸ The Section 3 Business Registry is a listing of firms that have self-certified

that they meet one of the regulatory definitions of a Section 3 business.

▸ Searchable online database ▸ Used by agencies that receive HUD funds, developers, contractors, and

• thers to facilitate the award of certain HUD-funded contracts.

▸ The database can also be used by Section 3 residents to identify businesses

that may have HUD-funded employment opportunities.

▸ Over 115 Minnesota companies currently registered

▸http://www.hud.gov/sec3BIZ

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

• Nationwide registry
• Currently 115

companies registered in Minnesota

• Companies in the

Registry are self- certified that they are Section 3 eligible

• Public housing

agencies can search for services and contact companies directly

SECTION 3 BUSINESS REGISTRY

▸ SIGN UP TODAY!

▸http://www.hud.gov/sec3BIZ

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

TWIN CITIES SECTION 3 COLLABORATIVE

▸ Twin Cities Section 3 Collaborative (http://tcsection3.org/)

empowers metro area low income and public housing residents to connect to job, training, and business opportunities.

▸ Participants include Anoka County, Dakota County CDA, Hennepin

County, Saint Paul PHA, City of Minneapolis, Minneapolis PHA, City of Saint Paul, Ramsey County, and Washington County.

▸ Could this model be useful for Greater Minnesota? ▸ Contact Jef Yang with City of Saint Paul at

jef.yang@ci.stpaul.mn.us for more background.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3 OPPORTUNITY PORTAL

Helps match Section 3 Residents to jobs and training opportunities; and Section 3 Businesses to contracting opportunities

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Login.gov – (online secure access to government services) Job/Contracting opportunity portal Section 3 resident registry

https://hudapps.hud.gov/OpportunityPortal/

SECTION 3 JOB OPPORTUNITY POSTINGS

▸ Section 3 Businesses and

Contracting companies can post both job and contracting

• pportunities in the Opportunity

Portal

▸ Opportunities will be submitted for

review to HUD or automatically posted after 24 hours.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3 JOB OPPORTUNITY POSTINGS

▸ Once posted, Section 3

• pportunities are searchable by

the public by Jobs, Contracts, or by Business (as that business is listed in the SPEARS Section 3 Registry)

▸ Opportunity Searches may be

done by Keyword or Location

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SECTION 3 RESIDENT REGISTRY

▸ Business Registry expanded to

include Section 3 Resident Registry

▸ Enables Section 3 Residents to

upload contact information, skills summary, and resume

▸ Allows Section 3 Residents to

search for Businesses based on skills

▸ Allows potential Employers to

Search the Section 3 Residents Registry for specific skills – Similar to USA Jobs

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Resident Opportunity Search Business Candidate Search

JAMES BALTAZAR

SENIOR ANALYST

U.S. Department of Housing and Urban Development Minneapolis Field Office

PHONE: (612) 370-2078 EMAIL: james.a.baltazar@hud.gov