1. Section 3
FOR HUD USE ONLY

2. Section 3: Proposed Rule

3. 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

4. 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

5. 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

6. 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.
Proposed Rule
FR-6085-P-01
Benchmarks6085-
FR-6085-N-02
Key changes to Section 3 (con’t)

7. Section 3: Spears

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

9. 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 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

10. Section 3: Opportunity portal

11. 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

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

13. 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.

14. 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

15. 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.

16. 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.

17. 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.

18. 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)

19. 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

20. 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

21. Section 3: business registry

22. 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

23. 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

24. Determining A section 3 Business

25. Register for Section 3 Self-Certification

26. Register for Section 3 Self-Certification

27. Register for Section 3 Self-Certification

28. Search for a HUD Section 3 Business

29. GOT Questions? section3@hud.gov

30. Thank you