1. 1 Section 3 Program Kansas City, Missouri

2. 2 Background Information 2005 - Department of Housing & Community Development was dismantled Prior to 2005 – Section was a contact clause 2006 – HUD Section 3 audit – February 2006 - Letter of Findings -- April, 2006 - City’s Response -- May, 2006 June – HUD approved the City’s Section 3 Program City opened Section 3 Office – June 1, 2006

3. 3 Kansas City, Missouri Section 3 Office One Stop-Shop for Section 3 transactions Contract with Full Employment (FEC) a. Section 3 Resident Certifications (FEC staff on site at Section 3 Office) b. Section 3 Resident Skills Assessments, Job training, job placement Certification of Section 3 Business Concerns Routinely updates Section 3 Business Concern list on the City’s website – www.kcmo.orgwww.kcmo.org Reviews and approves Section 3 Utilization Plans for the City Receives Section 3 monthly and quarterly reports Prepares and submits the City’s Annual 60002 report on Section 3 activities

4. 4 City Manager’s Office Contract Compliance Division Section 3 Office Human Relations Division

5. 5 Section 3 Program Contract Compliance Division On site Section 3 monitoring Desk audits Section 3 OfficeFull Employment Council of Greater Kansas City ↔↔ Resident Certification Certification of Section 3 business concerns Review/Approve Section 3 Utilization Plans Review/Analyze Monthly/Quarterly Reports Section 3 Outreach Activities (fairs, monthly community sessions) Prepare City Sections Reports to be submitted to HUD Resident skills assessing Job readiness training Job placement Large array of federal & state funded programs to support Section 3 resident training Job coaching On site visits after job placement

6. 6 Current & Upcoming Section 3 Programs in Kansas City, Missouri 1. Entitlement (CDBG/HOME Programs thru Annual Consolidated Plan a. Minor Home Repair b. Housing Repair Services c. CHDO Programs d. Beacon Hill Developments – a Section 108 Development 2. Neighborhood Stabilization Program NSP1 3. CDBG-R (ARRA) 4. Lead Abatement Program 5. Special Projects 6. Neighborhood Stabilization Program NSP2 7. Green Impact Zone (new) 8. Weatherization Program (ARRA) – (in Green Impact Zone only)

7. 7 CDBG and HOME Programs in Annual Consolidated Plan Section 3 Utilization Plan is required as part of the application process to the City Approved Section 3 Plans are required prior to the issuance of a City contract Approved Section 3 Plans become part of the contract with the City

8. 8 Section 3Guidebook Policies, Procedures & Plan Packet

9. 9 Kansas City, Missouri Neighborhood Stabilization Program Has a Land Bank entity – through City Contract Has selected community based groups, which are being referred to as Primary Property Developers – (PPDs) Primary Property Developers (PPDs) will be given contracts that will give them a bundle of foreclosed properties and provide significant funding for rehabilitation and marketing for resale Kansas City has already established the Section 3 requirements for the Neighborhood Stabilization Program Mandatory training Session for PPDs was conducted on June 1, 2009

10. 10 Key Components of Kansas City, Missouri Section 3 Utilization Plan Designate a project Section 3 coordinator List of subcontractors of $100,000 or more (name, company, owner, contact person, amount of contract and %) For each such subcontractor listed, a complete Section 3 Utilization Plan is required

11. 11 Key Components of Kansas City Missouri Section 3 Utilization Plan Section 3 Employment Plan – Project new hire opportunities and commit to a % of Section 3 hires Attach a list of core employees Section 3 Business Concerns Utilization Plan – Actually list the Section business concerns to be used on the project – date and amount and percent of contract

12. 12 Key Components of Kansas City Missouri Section 3 Utilization Plan Section 3 Business Concerns Utilization Reports by Property Address or NSP program) Section 3 Utilization Plan, when approved, becomes part of contract documents Required aggressive outreach to Section 3 Business Concerns Required bid notices published for work to be performed in three local newspapers

13. 13 Key Components of Kansas City Missouri Section 3 Utilization Plan – Neighborhood Stabilization Plan Program Section 3 outreach is to be well documented by Primary Property Developers Section 3 signage at all NSP property locations Monthly Section 3 Reports are required to be submitted by PPDs Subject to compliance monitoring by the City’s Contract Compliance Division

14. 14 Part II Section 3 Program Monitoring Kansas City, Missouri

15. 15 Key Components of Kansas City Missouri Section 3 Monitoring Process The Contract Compliance Office vigorously monitors all Section 3 Approved Utilization Plans to ensure requirements and responsibilities associated with work on the Section 3 projects are met Monitoring procedures are designed to decrease occurrence of noncompliance violations. Processes should be developed to ensure that monitoring procedures have been executed and Section 3 requirements have been fulfilled Toward this end, the following procedures should be included in a monitoring policy:

16. 16 Key Components of Kansas City Missouri Section 3 Monitoring Process  The public body/fund recipient (PB/RF) should put the Developer/Contractor on notice in writing, regarding monitoring processes, procedures and requirements they must adhere to and submittals they must remit upon request  Boilerplate correspondence should be developed, tailored to fit the needs of the (PB/RF), the HUD program and specific projects  A Matrix or a checklist that includes Sec 3 project requirements and monitoring methodology, is critical to ensuring overall compliance with Sec 3  Boilerplate follow-up correspondence to the Developer/Contractor should be designed, in the event that required documentation was not submitted

17. 17 Key Components of Kansas City Missouri Section 3 Monitoring Process The Contract Compliance Office conducts Section 3 monitoring visits on the project site and at the recipients office location, if necessary. Visits should be made as often as necessary and encompass the following:  Verification that Section 3 signage is posted on the job site for the duration of the construction and that it is visible from the roadway  Verification that the signage identifies the project as a Section 3 project, along with Developer/Contractor information for employment opportunities  Ensure that the Section 3 plan is on the project site

18. 18 Key Components of Kansas City Missouri Section 3 Monitoring Process Conduct interviews with Section 3 workers, including confirmation of their work tenure on the project Identification of the Section 3 workers, to include confirmation by visual identification against a drivers license or photo identification The Contract Compliance Office requires the following documentation from the Developer/Contractor: Copies of the Section 3 Business Concerns executed contracts with the Developer/Contractor Copies of the Business Concern’s Section 3 certification documents

19. 19 Key Components of Kansas City Missouri Section 3 Monitoring Process  Copies of the Section 3 residents new hire certification documents  Copies of the Developer/Contractor’s core list of current employees, aside from the new hires  Copies of payroll records that substantiate payment to and continuous employment of the Section 3 new hires that were interviewed  Copies of payroll records that substantiate the payment to and the continuous employment of the Section 3 new hires that were not interviewed

20. 20 Key Components of Kansas City Missouri Section 3 Monitoring Process  Copies of the aforementioned documentation for Section 3 new hires that replace Sec 3 workers, that are no longer employed by the Developer/Contractor, for the duration of the projectNOTE: It is acceptable for a Section 3 new hire to be employed at another location, controlled by the developer/contractor, for the duration of the subject Sec 3 project  Copy of the Section 3 project’s current construction schedule, remitted as updated on a continuous basis Refusal to submit documentation to Contract Compliance may be viewed as a breach of contract. The Developer/Contractor should be notified accordingly

21. 21 Key Components of Kansas City Missouri Section 3 Monitoring Process Any refusal to adhere to compliance requirements, may be viewed as a breach of contract, whereupon the Developer/Contractor should be notified accordingly Notification of corrective action should be provided to the Developer/Contractor Developer and or General Contractor must document efforts to comply with Section 3 provisions

22. 22 Section 3 Program Part III Kansas City, Missouri

23. 23 Results 428 persons have been certified as Section 3 residents 125 small businesses have been certified as Section 3 Business Concerns. 77 Section 3 residents have been place on jobs mostly related to HUD funded projects.

24. 24 38 Section 3 business concerns cumulatively have received $3,520,461 representing 16% if the City’s contracting activity with HUD sourced dollars. For the 2008 Consolidated Plan year alone, the Section 3 business percentage for Kansas City overall was over 17%. 350 Section 3 residents have participated in job readiness and training programs through the City’s relationship with the Full Employment Council of Greater Kansas City Conducted over 90 free business training seminars for Section 3 business concerns and other small businesses in Kansas City.