U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 3
AGENDA • WHAT IS SECTION 3? • EXAMPLES OF SECTION 3 OPPORTUNITIES • SECTION 3 BUSINESS REGISTRY • OPPORTUNITY PORTAL
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 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 other 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 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%
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EXAMPLES OF SECTION 3 OPPORTUNITIES All contracts for services are covered by Section 3 ▸ Accounting ▸ Drywall ▸ Marketing ▸ Architecture ▸ Electrical ▸ Painting ▸ Elevator Construction ▸ Payroll Photography ▸ Appliance Repair ▸ Bookkeeping ▸ Engineering ▸ Plastering ▸ Fencing ▸ Plumbing ▸ Bricklaying ▸ Carpentry ▸ Florists ▸ Printing Purchasing ▸ Carpet Installation ▸ Heating ▸ Research ▸ Iron Works ▸ Surveying ▸ Catering ▸ Cement/Masonry ▸ Janitorial ▸ Tile Setting ▸ Landscaping ▸ Transportation ▸ Computer/Information ▸ Machine Operation ▸ Word Processing ▸ Demolition
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 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 others 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
• 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
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 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 Login.gov – (online secure Job/Contracting opportunity Section 3 resident registry access to government services) portal https://hudapps.hud.gov/OpportunityPortal/
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 3 JOB OPPORTUNITY POSTINGS ▸ Section 3 Businesses and Contracting companies can post both job and contracting opportunities 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 opportunities 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 Resident Opportunity Business Candidate include Section 3 Resident Search Search 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
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
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