Section 3 FOR HUD USE ONLY

Section 3: Proposed Rule

Section 3 is a provision of the Housing and Urban Development Act of 1968: To ensure that jobs, training and contracting generated by HUD funding shall, to the greatest extent feasible, be directed to low- and very low- income persons, particularly those who are recipients of government assistance for housing, and to business concerns that substantially employ those persons. Section 3

June 3 August September October February 2020 March 2020 “Streamlining the “Section 3” Requirements for Creating Economic Opportunities for Low-and-Very-Low Income Persons and Eligible Businesses” Proposed rule timeline updates: June 3 Closing of Comment Period August Completion of Comment Review September Internal Departmental Clearance October Rule sent to OMB for formal review (typically up to 90 days) February 2020 Publication of Final Rule in the Federal Register (with a 30 day effective date) March 2020 Effective

Section 3 requires HUD funding recipients to make an effort (to the greatest extent feasible) to direct employment and economic opportunities that arise from HUD-funded activities to low-and- very-low incomes people. The Section 3 Proposed Rule reinforces this statutory framework while simplifying the administrative burden by: Aligning Section 3 reporting with standard business practices.   Promoting sustained employment and career development. Changing threshold for other HUD assistance programs subject to Section 3. Focusing reporting on key outcome metrics. Key changes to Section 3

Key changes to Section 3 (con’t) Key Changes Continued: Identifying “Targeted Section 3 Workers”. Setting initial benchmarks (see Benchmarks). Modifying the outcome benchmarks over time. Using qualitative reports to measure efforts if outcomes are inadequate. and Integrating Section 3 into program enforcement. https://www.regulations.gov/document?D=HUD-2019-0019-0001  Proposed Rule FR-6085-P-01 https://www.regulations.gov/document?D=HUD-2019-0020-0001 Benchmarks6085- FR-6085-N-02 Key changes to Section 3 (con’t)

Section 3: Spears

SPEARS: Section 3 Performance Evaluation And Reporting System Section 3: Spears

Section 3: Spears The Who and Why of Reporting: Direct the funding recipients to include public housing authorities, entitlement communities, states, and certain NOFA grantees that utilize HUD funding for construction and rehabilitation activities, to report; SPEARS replaces the paper-based data collection process; uses the same elements from the HUD form 60002; SPEARS captures data on the number of Section 3 residents hired or receiving training and the amount of contracts awarded to Section 3 businesses; 24 CFR Part 135.90 directs recipients of HUD financial assistance to submit reports to HUD for the purpose of determining the effectiveness of Section 3 no less than annually; The proposed Part 75 (.17 and .25), maintains annual reporting. Section 3: Spears

Section 3: Opportunity portal

Section 3 opportunity portal The 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 access to government services) Job/Contracting opportunity portal Section 3 resident registry

Section 3 Opportunity Portal: Login.gov Secure access to government services Offers the public access to participating government programs Requirements: (Email & phone number)

Section 3 Opportunity Portal: Job Opportunity Postings Section 3 businesses and contracting companies will be able to post both job and contracting Opportunities in the Opportunity Portal. Opportunities will be submitted for review to HUD or automatically posted to the site after 24 hours.

Section 3 Opportunity portal: Contracting opportunities Postings Section 3 businesses and contracting companies will be able to post both Job and contracting opportunities in the Opportunity Portal. Opportunities will be submitted for review to HUD or automatically posted to the site after 24 hours

Section 3 Opportunity Portal: Search Job and Contracting Opportunities Public users will be able to Search Section 3 opportunities by job (type), contracts or by businesses identified in the Section 3 SPEARS Registry. Opportunity searches can be by Keyword or Location such as City, State, County or MSA.

Section 3 Opportunity Portal: Search Businesses Public users will be able to search Section 3 businesses that are identified in the Section 3 SPEARS Registry. Business searches can be by Keyword or Location such as City, State, County or MSA.

Section 3 Opportunity Portal: Manage Business Opportunities Section 3 businesses and contracting companies will be able to manage both job opportunities and contracting opportunities in the Opportunity Portal.

Section 3 Resident Registry EXPANSION Resident Opportunity Search Business Candidate Search Expansion of the Section 3 Business Registry will: Include Section 3 Residents Registry. Enable Section 3 residents to upload contact information, skills summary, and resume. Allow residents to edit/update their information with self-certification. Resident information will be submitted for review to HUD or automatically posted to the site after 24 hours. Allow potential employers to Search the Section 3 Residents Registry for skilled resources. and (similar to USA Jobs) Provide guidance regarding posting of Personally Identifiable Information (PII)

Section 3 Resident Registry: Add Resident Details Potential candidates can enter themselves in the Resident Registry Candidates enter their contact information, job skills and resumes Section 3 businesses will be able to search through a database of candidates by skills and location

Section 3 Resident Registry: Business Access/Bookmark Section 3 business and contractors will request access to the portal to search available candidates Section 3 businesses and contractors can Bookmark candidates they are interested in for follow-up

Section 3: business registry

Section 3: Business Registry Who should use the Business Registry? Public Housing Authorities. State, County, and local government agencies. Property owners; developers; contractors. Others (a resource for finding local Section 3 businesses and notifying them about HUD- funded contracting opportunities). and Section 3 residents (to locate Section 3 businesses that may have new HUD-funded jobs as a result of recently awarded HUD- funded contracts). Section 3: Business Registry

Section 3: Business Registry Benefits of using the Business Registry: Find a listing of Section 3 businesses within their community. Self-certified who meet regulatory definitions of Section 3 business. Searchable online database that can be used by agencies. Search for a Section 3 business by various geographic designations, (i.e. Metropolitan area, State, County, City, or Zip Code). Businesses can register with additional business types (i.e. Accounting, Architecture, Consulting, Demolition, Engineering, and Roofing). There are currently approximately 5,000 businesses listed across 49 states. Section 3: Business Registry

Determining A section 3 Business

Register for Section 3 Self-Certification

Register for Section 3 Self-Certification

Register for Section 3 Self-Certification

Search for a HUD Section 3 Business

GOT Questions? section3@hud.gov

Thank you