12-Contractor Section 3 Plan.pdf

CONTRACTOR SECTION 3 PLAN

PROJECT NAME:

CONTRACTOR:

CONTRACT AWARD AMOUNT:

This Plan will serve as the Section 3 Plan for the above project in compliance with the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12. U.S.C. 1701u). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and Local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

All contracts (and subcontracts) in excess of $200,000 must comply with Section 3 regulations per 24 CFR Part 75.

(Name of Contractor) agrees to follow the required prioritization of effort for Section 3 workers, Targeted Section 3 workers, and Section 3 business concerns as defined below, and to meet the safe harbor requirements as defined in 24 CFR Part 75.19 and outlined below. If the contractor or its subcontractor(s) does not meet the safe harbor requirements, the contractor must provide evidence that qualitative efforts have been made to assist low and very low-income persons with employment and training opportunities.

Per 24 CFR 75.5, a Section 3 worker is defined as: “Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented: (1) The worker's income for the previous or annualized calendar year is below the income limit established by HUD.

(2) The worker is employed by a Section 3 business concern. (3) The worker is a YouthBuild participant.”

Per 24 CFR 75.21, a Targeted Section 3 worker is defined as a Section 3 worker, who is “A worker employed by a Section 3 business concern; or (2) A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years: (i) Living within the service area or the neighborhood of the project, as defined in 24 CFR Part 75.5; or (ii) A YouthBuild participant.”

Per 24 CFR 75.5, a Section 3 business concern is defined as. “A business concern meeting at least one of the following criteria, documented within the last six-month period: (i) It is at least 51 percent owned and controlled by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers; or (iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.”

Per 24 CFR 75.5, a Service Area or Neighborhood is defined as “an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 https://www.ecfr.gov/current/title-24/section-75.5 people according to the most recent U.S. Census.”

SAFE HARBOR REQUIREMENTS:

The (CONTRACTOR) will, to the greatest extent feasible, when awarding contracts or providing training and/or employment opportunities for activities or projects subject to the requirements of Section 3, strive to comply with the goals established in this section. The numerical goals established in this section represent minimum benchmark requirements.

Contractors must attempt to reach the Section 3 benchmarks in accordance with 24 CFR Part 7523(b) and the current Benchmark Notice effective October 29, 2020 which states that :

1. 25% or more of the total labor hours worked must be done by Section 3 workers.

2. 5% or more of the total labor hours worked must be done by Targeted Section 3 workers.

The service area or neighborhood for this project is: _______________________

REPORTING:

Contractors and subcontractors must report the following labor hours for this project in order to verify benchmarks have been met:

1. The total number of labor hours worked by all workers,

2. The total number of labor hours worked by Section 3 workers,

3. The total number of labor hours worked by Targeted Section 3 workers.

Contractors that fail to meet the minimum benchmark requirements bear the burden of demonstrating why it was not possible to do so. Such justifications should describe the qualitive efforts that were taken in accordance with 24 CFR Part 75.25(b), barriers encountered, and other relevant information that will enable HUD to make a compliance determination.

The Contractor shall provide a Section 3 Activity Summary Report identifying its progress in meeting the Section 3 goals throughout the construction period.

CONTRACTOR COMMITMENTS:

A. To make every effort feasible to meet Section 3 benchmarks by utilizing the Contractor’s existing qualified workforce and to consider qualified eligible Section 3 and Targeted Section 3 workers before other persons when hiring additional employees to complete this project.

B. To recruit Targeted Section 3 workers from the service area of the project through, but not limited to: local advertising media, signs placed at the proposed site for the project, and community organizations and public or private institutions operating within or serving the project area.

C. To maintain a list of all Section 3 workers and Targeted Section 3 workers who have applied either on their own or on referral from any source, and to employ such persons, if otherwise eligible and if a vacancy exists.

D. To insert this Section 3 plan in all bid documents, and to require all bidders on subcontracts to submit a Section 3 plan including benchmarks and qualitive efforts made to accomplish these goals. (Contracts for $200,000 or less are exempt)

E. To ensure that subcontracts which are typically let on a negotiated rather than a bid basis in areas other than Section 3 covered project areas, are also let on a negotiated basis, when let in a Section 3 covered project area. (Contracts for $200,000 or less are exempt)

F. To formally contact unions, subcontractors and trade associations to secure their cooperation for this program.

G. To ensure that all appropriate project area business concerns are notified of pending sub-contractual opportunities.

H. To maintain records, including copies of correspondence, memoranda, etc., which document all of the above affirmative action steps have been taken.

I. To appoint or recruit an executive official of the company or agency as Equal Opportunity Officer to coordinate the implementation of this Section 3 plan.

CERTIFICATION STATEMENT:

In compliance with the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, we the undersigned have read and agree to the terms in the Section 3 Plan for this project.

We acknowledge being a party to this Plan and further pledge our commitment to adhere to the objectives set forth.

Signature Title Date

Signature Title Date

Section 3 Reporting Form 24 CFR 75

Grant Number: Total Amount of Award:

Contact Person:

Project Name:

Address :

Date Report Submitted:

Program Name:

Total Labor Hours

Section 3 Target Worker Hours

Section 3 Worker Hours

Calculated Percentage

Safe Harbor Benchmark Met (Yes or No)

Phone Number:

Hours

Nature of Agency Efforts:

This section is required if, based on the labor hours reporting above, the reporting agency did not meet the safe harbor benchmarks.

Maintain records available for HUD review to document any efforts checked:

Check all that apply.

☐ Outreach efforts to generate job applicants who are Public Housing Targeted Workers ☐ Outreach efforts to generate job applicants who are Other Funding Targeted Workers ☐ Direct, on-the job training (including Apprenticeship).

☐ Indirect such as arranging for, contracting for, or paying tuition for, off-site training.

☐ Technical assistance to help Section3 workers compete for jobs (e.g., resume assistance, coaching).

☐ Outreach efforts to identify and secure bids from Section 3 business concerns.

☐ Technical assistance to help Section 3 business concerns understand and bid on contracts.

☐ Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.

☐ Provided or connected residents with supportive services that can provide direct services or referrals.

☐ Provided or connected residents with supportive services that provide one or more of the following:

work readiness health screenings, interview clothing, uniforms, test fees, transportation.

☐ Assisted residents with finding childcare.

☐ Assisted residents to apply for/or attend community college or a four-year educational institution.

☐ Assisted residents to apply for or attend vocational/technical training.

☐ Assisted residents to obtain financial literacy training and/or coaching.

☐ Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

☐ Provided or connected residents with training on computer use or on-line technologies.

☐ Other. Specify:

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