CDBG_Section_3_Paperwork.pdf

This document contains provisions and procedures for compliance with Section 3 of the Housing and Urban Development (HUD) Act of 1968, specifically applicable to contracts and subcontracts over $200,000. The document outlines requirements for contractors and subcontractors to provide employment and training opportunities to low- and very low-income residents in the project area, particularly those who are recipients of HUD assistance. Contractors must identify job positions, determine vacancy rates, establish targets for hiring Section 3 residents, and include specific clauses in subcontracts to ensure compliance.

The provisions define key terms such as "Section 3 Resident" (individuals with incomes at or below 80% of the area median) and "Section 3 Business" (businesses that meet specific ownership and employment criteria). Contractors must give preference to Section 3 businesses when awarding subcontracts and must notify these businesses of pending contractual opportunities. The document includes two appendices: Appendix No. 1 for estimated workforce breakdown and Appendix No. 2 for Section 3 business utilization. Non-compliance can result in sanctions, contract termination, and debarment from future HUD-assisted contracts. The document also includes specific provisions for Indian housing assistance, requiring preference for training and employment opportunities for Indians and Indian-owned businesses.