2010 DCA CDBG Applicants’ Workshop Section 3

Page CDBG Applicants’ WorkshopSection 3 What is Section 3? Provision of the Housing and Urban Development Act of 1968 Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency Requires recipients of certain HUD financial assistance to provide job training, employment and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhood.

Page CDBG Applicants’ WorkshopSection 3 Applicability ▪$200K Threshold for Recipient Grant Award ▪$100K Threshold for Construction Contracts ▪Housing rehabilitation (including lead-based paint abatement) ▪Housing construction ▪Other public construction

Page CDBG Applicants’ WorkshopSection 3 Who are Section 3 Residents? Residents of the non-metro county where the HUD- assisted project is located and who have a household income that falls below HUD’s income limits. Public housing resident Section 8 resident ▪Determining Income Levels Section 3 low income is defined as 80% or below the median income of that area (CDBG low to moderate income standard). Section 3 very low income is defined as 50% or below the median income of that area (CDBG low income standard).

Page CDBG Applicants’ WorkshopSection 3 What is a Section 3 business? 51% or more owned by Section 3 residents Section 3 residents make up 30% of its full- time permanent staff Provide evidence of a commitment to subcontract more than 25% of the dollar award of all subcontracts to businesses that qualify as a Section 3 business

Page CDBG Applicants’ WorkshopSection 3 Ways to implement Section 3 ▪Contact resident councils, resident managers or other resident organizations to request assistance in notifying residents of jobs ▪First-source hiring agreements ▪Sponsor job informational meetings ▪Partnership with Department of Labor

Page CDBG Applicants’ WorkshopSection 3 Ways to implement Section 3 ▪Partnership with Local Technical College ▪Conduct job interviews at the housing development or the neighborhood service area of the project ▪Use community-based organizations to recruit and screen qualified persons ▪Compile a list of all existing vocational training and apprenticeship programs in the area.

Page CDBG Applicants’ WorkshopSection 3 Remember Discuss plans for complying with Section 3 in your 2010 CDBG Application Start early establishing systems and relationships DCA will work on “standard approaches” for recipients Section 3 Reporting – More to come