CDBG_Section_3_Paperwork.pdf

This document is a set of provisions and procedures for compliance with Section 3 of the Housing and Urban Development (HUD) Act of 1968, as amended, applicable to contracts and subcontracts. The document outlines requirements for contractors and subcontractors with contracts exceeding $100,000, mandating they provide training and employment opportunities to Section 3 area residents and give preference to Section 3 business concerns. Contractors must identify the number of positions needed, determine current vacancy rates, establish targets for hiring Section 3 residents, and ensure notification of contractual opportunities to local businesses.

The provisions specifically require contractors to direct economic opportunities to low and very low-income persons, particularly those who are recipients of HUD assistance. Contractors must comply with regulations in 24 CFR Part 135, which includes posting notices about job opportunities, describing position requirements, and setting minimum hiring targets for Section 3 residents. Non-compliance can result in contract termination, default, or debarment from future HUD-assisted contracts. The document includes appendices for estimated workforce breakdown and Section 3 business utilization, which contractors must complete to demonstrate their commitment to these requirements.