2009 CDBG/CHIP Recipients’ Workshop Section 3

Page CDBG/CHIP Recipients’ WorkshopSection 3 What is Section 3? Provision of the Housing and Urban Development Act of CFR Part 135 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/CHIP Recipients’ 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/CHIP Recipients’ 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/CHIP Recipients’ 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/CHIP Recipients’ WorkshopSection 3 Eligibility for Employment and Contracting Section 3 resident must meet the qualifications of the position to be filled. Section 3 business must have the ability and capacity to perform successfully under the terms and conditions of the proposed contract.

Page CDBG/CHIP Recipients’ WorkshopSection 3 Recipient Responsibilities Notify Section 3 residents and businesses  Newspaper Ads  Post announcements at Public Housing Authority office Facilitate training and employment of residents  Partnership with Department of Labor  Partnership with Local Technical College Award contracts to Section 3 businesses Assist with compliance among contractors Document compliance

Page CDBG/CHIP Recipients’ WorkshopSection 3 Examples of Economic Opportunities Bricklaying Carpentry Carpet Installation Cement/Masonry Demolition Drywall Electrical HVAC Painting Pipe Installation Plastering Plumbing Roofing

Page CDBG/CHIP Recipients’ WorkshopSection 3 Recipient Responsibilities (cont) Submit HUD Form to DCA semi- annually (June 30 th and December 31 st ) Additional Section 3 information can be obtained at

Page CDBG/CHIP Recipients’ WorkshopSection 3 Contact Information Pam Truitt, Grants Consultant Phone: (404) Rick Huber, Compliance Manager Phone: (404) Crystal Shelly, Grants Consultant Phone: (404)