2-05b -Sec. 3 Reqs and Forms.pdf

REQUIREMENTS OF BIDDERS

THE BIDDERS ATTENTION IS DIRECTED TO THE FOLLOWING REQUIREMENTS THAT MUST ACCOMPANY THEIR BID

PROPOSAL.

Please note: To all contractors: you are responsible for obtaining information for the Section 3 Compliance from all subcontractors. The completed Labor Hours report must be submitted once project is completed.

Forms to complete with Bids for all contractors:

A) SECTION 3 CLAUSE: Please ANSWER THE QUESTIONS AND read carefully. These are the requirements and must be included in every CDBG, HOME, ESG funded construction Section 3 projects

B) MINORITY & FEMALE OWNED BUSINESS AND SECTION 3 BUSINESS CONCERN CERTIFICATION

(form2) The completion of this forms are to certify that you have read the Section 3 Clause, and your status of eligibility for preference as a Section 3 Business. OTHER NOT necessary to submit at bidding time only if you are the selected bidder and futhther instruction will be provided.

SECTION 3 WORKER AND TARGETED SECTION 3 WORKER SELF-CERTIFICATION (form 2)–The form can help you verify if any of your employees meet the Section 3 criteria, that is detailed on the MINORITY AND FEMALE OWNED BUSINESS LISTING AND SECTION 3 BUSINESS CONCERN LISTING form. This form is not to be submitted to YCPC, unless requested for HUD monitoring purposes. It must be kept on each employee file for at least 5 years after completion of project. It is a tool to be used as verification for any business in order to verify their status as a Section 3 business.

DEFINITIONS

The terms HUD, Public housing, and Public Housing Agency (PHA) are defined in 24 CFR part 5. The following definitions also apply to 24 CFR Part 75 HUD’s Economic Opportunities for Low-and Very Low-Income Persons:

1937 Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq. activities related to Public Housing Contractor means any entity entering into a contract with:

(1) A recipient to perform work in connection with the expenditure of public housing financial assistance or for work in connection with a Section 3 project; or

(2) A subrecipient for work in connection with a Section 3 project.

Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance.

Low-income person means a person as defined in Section 3(b)(2) of the 1937 Act, at or below 80% AMI. Note that Section 3 worker eligibility uses individual income rather than family/household income.

Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.

Professional services means non-construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, financial consulting, accounting services, environmental assessment, architectural services, and civil engineering services.

Public housing financial assistance means assistance as defined in 24 CFR Part 75.3(a)(1).

Public housing project is defined in 24 CFR 905.108.

Recipient means any entity that receives directly from HUD public housing financial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonprofit organization.

Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u).

Section 3 business concern means:

(1) 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.

(2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.

(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern.

Section 3 business concerns are not exempt from meeting the specifications of the contract.

Section 3 Coordinator is person tasked with overseeing all Section 3 responsibilities for the PHA/CD office.

Section 3 project means a project defined in 24 CFR Part 75.3(a)(2).

Section 3 worker means:

(1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:

(i) The worker's income for the previous or annualized calendar year is below the income limit established by

HUD.

(ii) The worker is employed by a Section 3 business concern.

(iii) The worker is a YouthBuild participant.

(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.

(3) Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.

Section 8-assisted housing refers to housing receiving project-based rental assistance or tenant-based assistance under Section 8 of the 1937 Act.

Service area or the neighborhood of the project means 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 people according to the most recent U.S. Census.

Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.

Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of public housing financial assistance or for a Section 3 project.Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.

Targeted Section 3 worker has the meanings provided in 24 CFR Part 75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.

Very low-income person means the definition for this term set forth in section 3(b)(2) of the 1937 Act (at or below 50% AMI). YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).

Build America, Buy America Act All federal projects that is subject to the Build America, Buy America Act (BABAA) requirements under Title IX of the Infrastructure Investment and Jobs Act (“IIJA”), Pub. L. 177-58. Absent an approved waiver, all iron, steel, manufactured products, and construction materials used in this project must be produced in the United States, as further outlined by the Office of Management and Budget’s Memorandum M-22-11.

Provider shall obtain all necessary compliance certificates for work that is within provider’s scope of work.

Failure to do so shall be a default under this bid. Guidance on complying with BABAA is outlined by the Office of Management and Budget’s Memorandum M-22-11, Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure, April 18,2022

See attachment in your bidder pack titled: What Is Build America, Buy America?

For details and links to resources on what to do. For BABBA HUD waivers please see link:

https://www.hudexchange.info/programs/baba/waivers/

UNIQUE ENTITY IDENTIFIER (UEI) NUMBER

Funds or partial funds for this project are Federal funds therefore a Unique Entity Identifier (UEI) number will be required. Read this notice carefully as part of the requirements necessary for bidding on this project.

For our CDBG and HOME projects, the York County Planning Commission on behalf of York County must follow the 2 CFR

200.214 Suspension and debarment requirements. What this means to you is that all Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.

In order to meet the debarment and suspension exclusion requirement, all participants will need a Unique Entity Identifier (UEI) as the primary means of entity identification for Federal awards government-wide. UEIs are required in accordance with 2 CFR Part 25. This change streamlines the entity identification and validation process, making it easier and less burdensome for entities to do business with the Federal Government.

To obtain, and maintain a Unique Entity Identifier (UEI) number at www.SAM.gov. and the registration must result in a status of “Active Registration.” To maintain an “Active Registration” in the SAM.gov database after the initial registration, the applicant is required to review and update its information in the SAM.gov database every 365 days to ensure it is current, accurate and complete.

Please acknowledge by signature form(attach) “Notification to bidders” with the bid package proposal.

Notification to bidders ALL BIDDERS MUST READ AND SIGN ACKNOWLEDGING THEY HAVE READ (Effective 7/1/2024)

Funds or partial funds for this project are Federal funds therefore a Unique Entity Identifier (UEI) number will be required. Read this notice carefully as part of the requirements necessary for bidding on this project.

For our CDBG and HOME projects, the York County Planning Commission on behalf of York County must follow the

200.214 Suspension and debarment requirements. What this means to you is that all Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part

180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.

In order to meet the debarment and suspension exclusion requirement, all participants will need a Unique Entity Identifier (UEI) as the primary means of entity identification for Federal awards government-wide. UEIs are required in accordance with 2 CFR Part 25. This change streamlines the entity identification and validation process, making it easier and less burdensome for entities to do business with the Federal Government. To obtain, and maintain a Unique Entity Identifier (UEI) number at www.SAM.gov and the registration must result in a status of “Active Registration.” To maintain an “Active Registration” in the SAM.gov database after the initial registration, the applicant is required to review and update its information in the SAM.gov database every 365 days to ensure it is current, accurate and complete.

If you do not have a UEI number and intend to bid on this project, please begin the process immediately. It takes some time to complete and obtain the number.

I ______________________________ acknowledge that I have read and understand the requirements and will obtain a UEI number to comply with federal funding regulations, if awarded the project.

Company Name _______________

Official Signature Title Date

SECTION 3 CLAUSE ALL BIDDERS MUST READ AND SIGN ACKNOWLEDGING THEY HAVE READ THE CLAUSE Please answer the following questions:

Does Section 3 apply to you?

1)

2) Does your project have $200,000 or more of HUD sourced funding (federal), i.e. CDBG, HOME, NSP, etc?

, Section 3 applies to your Project, proceed with Section 3 plan.

SECTION 3 CLAUSE (A to G) “The Section3Contract Clausespecifiestherequirementsforcontractors hiredforSection3 covered contracts for construction. It must be included in all Section 3 contracts for construction with CDBG, HOME, ESG funds.

All Section 3 Covered Contracts shall include the following clause (A-G, below), referred to as the Section 3 clause:

A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12U.S.C. 1701u (section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD Assistance or HUD- assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low and very low-income persons, particularly persons who are recipients of HUD Assistance for housing.

B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations.

C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin

D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135.

E. The contractor will certify that any vacant employment positions, including training positions, that are filled

(1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 135.

F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

G. With respect to work performed in connection with Section 3 covered Indian Housing Assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work performed under this contract. Section 7(b) requires that the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.

Parties to this contract that are subject to the provisions of section 3 and section 7 (b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).”

Contractor’s Acceptance I certify that I have read this Section 3 Clause and will to the greatest extent feasible attempt to implement in this project.

Official Signature: _____________________________ Date: _____________

MINORITY & FEMALE OWNED BUSINESS AND SECTION 3 BUSINESS CONCERN CERTIFICATION

INSTRUCTIONS: ENTER THE FOLLOWING INFORMATION AND SELECT THE CRITERIA THAT APPLIES TO CERTIFY YOUR BUSINESS’ SECTION 3 BUSINESS CONCERN AND MBE/WBE STATUS Certification expires within six months of the date of signature Information regarding Section 3 Business Concerns can be found at 24 CFR 75.5

Name of Business: _____________________________________________________________ Address: _____________________________________________________________________ Phone: _________________ Fax:________________ :-__________________________ Contact Person: _______________ E-mail:- ____________________ EIN#_________________________ Please check one: Currently active business. No longer in business.

Type of Business (select from the following options): Corporation Partnership Sole Proprietorship Joint Venture

Description of Work or service: _____________________________________________________

MBE/WBE BUSINESS LISTING: Please check those that apply:

1a. This business: IS IS NOT a Minority Owned Business

2a. This business: IS IS NOT a Female Owned Business

SECTION 3 Listing: Does the business meet one of the following preferences? ______Yes ____NO A Section 3 Business means a business that meets one or more of the following criteria: To become CERTIFIED as a Section 3 Business please check all boxes that apply and RETAIN written evidence of the same:

1) ___ At least 51 percent of the business is owned and controlled by low- or very low-income persons;

2) ___ At least 51 percent of the business is owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing; or

3) ___ Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers.

Section 3 worker means:

(1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:

(i) The worker's income for the previous or annualized calendar year is below the income limit established by

HUD.

(ii) The worker is employed by a Section 3 business concern.

(iii) The worker is a YouthBuild participant.

Business Concern Affirmation I affirm that the above statements are true, complete, and correct to the best of my knowledge and belief. I understand that businesses who misrepresent themselves as Section 3 business concerns and report false information to YCPC may have their contracts terminated as default and be barred from ongoing and future considerations for contracting opportunities. I hereby certify, under penalty of law, that the following information is correct to the best of my knowledge.

Signature Name of Authorized Official of Business Date

Print Name: ________________________________

FOR ADMINISTRATIVE USE ONLY

Is the business a Section 3 business concern based upon their certification?

EMPLOYERS MUST RETAIN THIS FORM IN THEIR SECTION 3 COMPLIANCE FILE FOR FIVE YEARS

SECTION 3 WORKER AND TARGETED SECTION 3 WORKER SELF-CERTIFICATION

The purpose of HUD’s Section 3 program is to provide employment, training and contracting opportunities to low-income individuals, particularly those who are recipients of government assistance for housing or other public assistance programs. Your response is voluntary, confidential, and has no effect on your employment.

Project Name_________________________ Project Address:________________________ Applicant Name:________________________ Applicant address: ______________________ Phone # _______________ Email: ______________________ Are you a Public Housing Resident? or YES NO Participant in YouthBuild Program YES __NO Holder of a Section 8 voucher? ___ YES ___ NO Participant reside within 1 mile of the project YES NO (If you checked “YES” just complete “Employee Information”, and sign & date at the bottom of the form – if you checked “No,” and are a resident of the COUNTY OF YORK, complete the remainder of the form.)

EMPLOYER INFORMATION:

COMPANY NAME STREET ADDRESS CITY

STATE ZIPCODE

PHONE # FAX #

EMPLOYEE INFORMATION:

NAME ADDRESS CITY _________ ZIP CODE

COUNTY STATE_____HOME PHONE # ______ CELL PHONE # ___ HIRE DATE (mm/dd/yyyy) ________ RACE/ETHNICITY: __ White (Non-Hispanic) _ American Indian/Alaskan Native __Asian/Pacific Islanders Black (Non-Hispanic) Hispanic (All Races) Hasidic Jews Select the amount of individual income you believe you earn on an annual basis from below

Less than $10,000 $30,001 - $40,000 More than $60,000 $10,001 - $20,000 $40,001 - $50,000 $20,001 - $30,000 $50,001 - $60,000

HUD Income limits can be found at: https://www.huduser.gov/portal/datasets/il.html I qualify as a:

Section 3 Worker Definition-A low or very low-income resident (the worker’s income for the previous or annualized calendar year is below the income limit established by HUD); or Employed by a Section 3 business concern; or A YouthBuild participant

Targeted Section 3 Worker Definition - Employed by a Section 3 business concern or currently meets or when hired met at least one of the following categories as documented within the past five years: Living within the service area or the neighborhood of the project, as defined in 24 CFR 75.5. A YouthBuild participant.

Employee Affirmation

I affirm that the above statements are true, complete, and correct to the best of my knowledge and belief. I hereby certify, under penalty of law, that the following information is correct to the best of my knowledge.

Signature: Date: _________ Employee Address:

Print Name:

FOR ADMINISTRATIVE USE ONLY

The worker’s income must be at or below the amount provided below for an individual (household of 1) regardless of actual household size.

Is the employee a Section 3 worker based upon their self-certification?

Is the employee a Targeted Section 3 worker based upon their self-certification?

Was this an applicant who was hired as a result of the Section 3 project?

If Yes, what is the name of the company? _______________________ What was the date of hire? _________________ EMPLOYERS MUST RETAIN THIS FORM IN THEIR SECTION 3 COMPLIANCE FILE FOR FIVE YEARS.

OVERVIEW FOR LABOR HOURS The regulation introduces several new concepts and definitions to align the regulations more closely with the statutory priorities for hiring and contracting and with grantee current practices. The most significant change is the switch from tracking and reporting new hires and contracts to tracking and reporting labor hours.

“Labor hours” means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance (24 CFR 75.5). The Final Rule’s focus on labor hours seeks to measure total actual employment and the proportion of the total employment performed by low- and very low-income workers. In addition, the change to tracking labor hours captures continued and long-term employment.

The focus on labor hours creates an incentive for employers to invest in and retain their newly hired workers.

The report of total labor hours will include three categories of workers on the project:

1) all workers,

2) Section 3 workers, and

3) Targeted Section 3 workers.

The definitions in 24 CFR 75.5 for a “Section 3 worker,” and “Targeted Section 3 worker,” simplify grantee reporting and better align with statutory priorities.

Definitions A Section 3 Worker is, or when hired in the past five years was:

• A low- or very low-income individual; or

• A YouthBuild participant; or

• Someone employed by a Section 3 Business Concern Targeted Section 3 Workers.

A Targeted Section 3 Worker is a Section 3 Worker who is:

• Employed by a Section 3 Business Concern; or

• Who currently fits or when hired fit one of the following definitions, as documented in the previous five years:

within one mile of the project); or housing; or o Resident of another project managed by the PHA

SECTION 3 LABOR HOURS SUMMARY REPORT INSTRUCTIONS

The form bellow is an example for labor hours reporting, YCPC has an excel spreadsheet that I can provided by request or any contractor can developed their own if preferred.

All contractors and subcontractors involved with federally assisted project will need to complete the report separately even if they are working in the same project. Table instructions:

1) Top Lines- 1. thru 6. -Please complete basic project and business information

2) Top Line - 7. Reporting period – should start the day construction begins until the end of construction. If construction is to be more than 90 days; then report end period should be at the end of 90 days and quarterly reports on 90 days periods generated until the completion of the project.

3) Top Line 8.- Date report Submitted – the date you are submitting to YCPC –

4) Column 9. - Project dates- project starting and ending dates

5) Awarded amount- contractor or subcontract amount

6) Top Line11. - Funding program name –the federal funding source

7) Column A “Worker name and position” – add all employee working on this project and their position

8) Column B “All worker labor hours” –add total labor hours for each employee for the reporting period

9) Column C “Section 3 Worker” –this column will show all employee that meet this criteria the definition of a section 3 worker is above on this instruction for your convenience. Form RESIDENT EMPLOYMENT OPPORTUNITY ELIGIBILITY CERTIFICATION FY 2022 can be used as a tool to certify and verify this requirement.

10) Column D % of Section 3 worker - this column will generated your “%” of section 3 worker for this project

11) Column E “Section 3 Targeted Worker” –this column will show all employee that meet this criteria; the definition of a section 3 targeted worker is above on this instruction for your convenience. Form RESIDENT EMPLOYMENT OPPORTUNITY ELIGIBILITY CERTIFICATION FY 2022 can be used as a tool to certify and verify this requirement.

12) Column E “% of Section 3 targeted worker” - this column will generated your “%” of section 3 targeted worker for this project.

13) Column F trainees – will be indicated any new hires for the project

Blank Labor Hour Table