Forms_0-8_Exhibit_13A-I_&_Supplemental_Forms_A-D_Section_3_Plan_Packet.pdf

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*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance

Form 0* Exhibit 13A: Section 3 Project Implementation Plan

OVERVIEW

Section 3 Goals

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires recipients of certain HUD financial assistance to provide job training, employment, and contracting, to the greatest extent feasible, to low- or very low-income residents, in connection with projects and activities in their neighborhoods. Section 3 is race and gender neutral and is NOT the same as

WBE/MBE.

Projects receiving over $200,000 in HUD assistance trigger Section 3. When triggered, best efforts must be made to extend Section 3 opportunities to verified Section 3 residents and business concerns to meet these minimum numeric goals:

1. Twenty-five percent (25%) of the total labor hours on a Section 3 project must be worked by Section 3 workers; and

2. Five percent (5%) of the total labor hours on a Section 3 project must be worked by Targeted Section 3 workers.

Preference for Contracting with Section 3 Business Concerns

_____________________________ is required by HUD Regulation 24 CFR Part 75 to make best efforts to contract with businesses that direct economic opportunities to Section 3 workers. As part of its qualitative efforts, _____________________________has elected to institute a preference which stipulates that contract awards shall be given to the bidder using the highest number of qualified Section 3 subcontractors and/or workers if the bid is reasonable and no more than ten percent (10%) higher than the lowest responsive bid from any qualified source. This benefit applies to ALL projects, even if Section 3 is not triggered.

Programmatic Responsibilities

Contractors and/or Subcontractors are expected to meet the minimum goals listed above, to the greatest extent feasible. (Note: Section 3 may not be triggered for all projects, but best efforts to comply with the minimum numerical goals are still highly recommended.) Efforts to utilize Section 3 businesses and workers should be documented, and this Section 3 Project Plan should be submitted for all relevant project bids.

Submit FORMS 1 & 2 for all projects or FORMS 1 – 5 for all Section 3-triggered projects (HUD funding assistance, provided that said assistance is over $200,000 for the project) at the time of the bid submission or application for funding.

Refer to the Section 3 Forms Matrix included below for the following:

• Form Title/Purpose

• Submission points during the project reporting period

• Responsibilities for utilization

NOTE TO BIDDERS: You must return ALL applicable forms in this packet with your bid. Failure to do so may result in your bid being disqualified.

Revised Version: November 15, 2024

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Section 3 Forms Submit with Bid Proposal or Subcontract Award

Submit at time of Contract Award

Submit with Periodic Reporting Activity

Submit with Final Report

Purpose of Form

Form 1 Assessment and Certifications: By completing this form the contractor/developer agrees to make efforts “to the greatest extent feasible” to comply with Section 3 as required by HUD, includes agreement to submit quarterly and final reports.

x x (This form moves from bid proposal to contract award.)

This form certifies that contractor/developer will utilize the forms packet accordingly. General contractors ensure that all subcontractors utilized for the project also certify to Section 3 requirements.

Form 2 Subcontractor Information Form: This form is required for ALL projects regardless of whether Section 3 is triggered. This form provides for subcontractors to be utilized on the project and identifies Section 3 Business status of the subcontractor.

x (This form is to be completed to the extent this information is known to contractor at time of bid) x (Updated from bid submission and is to be completed to extent known at time of contract) x x Contractors update this form quarterly for recordkeeping.

Supports recordkeeping. data for Form 4 - Qualitative Efforts and Form 6 Project Compliance Report.

Form 3 List of Permanent Employees: A computer generated employee registry that can identify Section 3 and Targeted Section 3 workers can be provided in lieu of this form.

x (This form is only required to be completed if bidder wins contract. At the time of the bid, this form could be optional for the contractor or developer to complete.)

submission to be included in executed contract.)

x • Contractors update this form quarterly for recordkeeping –it can possibly align with the contractor’s payroll system.

• Supports data for Form 4 Qualitative Efforts and Form 6 Project Compliance Report.

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Form 4 Qualitative Efforts: This form reports all efforts made to direct the employment and other economic opportunities generated by HUD financial assistance, to the greatest extent feasible, to Section 3 workers.

Qualitative reporting is required when the Section 3 Benchmarks are not met for the project.

x (It is probable that no efforts will be reported at time of bid but gives opportunity to the bidder to explain any efforts taken to demonstrate compliance with Section 3 requirements.)

submission to be included in executed contract.)

x x

Form 5 Section 3 Contract Clause: To be included for ALL contracts. Includes Section 3 requirements for those projects that receive over $200,000 in HUD assistance.

Section 3 is applicable on a project basis if the project triggers the $200,000 Section 3 threshold. All contracts for a Section 3 covered project must comply with Section 3 requirements regardless of the contract price. Benchmark reporting is aggregated for the project.

x (not a signature form – must be included in bid proposal solicitation) x (Not a signature form – must be included in executed contract)

Supports Form 4 Qualitative Efforts when Section 3 requirements are communicated for the project.

Form 6 Project Compliance Report: This form is used to report labor hours on the project, including the breakdown of total labor hours performed by Section 3 workers and total labor hours

This form is included in the bid packet and serves as informative use only to bidder x (Needs to be in packet at contract award. Will be completed for quarterly x x Identify all benchmark data per applicable quarterly reporting period. Only include benchmark data relevant to the applicable quarterly reporting period.

3 plan, not all forms may be applicable and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

performed by Targeted Section reporting submission)

Form 7 Section 3 Business Outreach Form*: this form is used to verify that a business meets the status criteria of a Section 3 Business Concern.

All workers employed by Section 3 Business Concern are counted as Section 3 workers and Targeted Section in the bid packet for bidder to utilize as applicable. It is not required to submit this form at the time of bid/ proposal submission deadline.

X (included in contract agreement – for contractor to use to solicit Section 3 subcontracto rs) x x

Form 8 Section 3 Worker Outreach Form*: This form is used to document Section 3 and Targeted Section 3 worker status. Workers qualify as Section 3 if they are employed by a Section 3 business concern, or their annualized income is at or below 80 percent of the area median income for the area in which the worker resides, or the worker is a YouthBuild participant. The instructional guidance for this form includes navigation of the HUD income limits. The form also provides guidance to certifying the Section 3 worker as a Targeted Section 3 worker.

for informative use only at the time of bid solicitation – if bidder wins contract, they will document Section 3 status of existing employees and engage in Section 3 hiring efforts.

x (included in contract agreement to be used by contractor in Section 3 hiring efforts) x x • This form is to be submitted to HCD or the project Subrecipient identified on the form immediately upon completion of the form.

• Supports contractor to complete Form 3 List of permanent employees to identify Section 3 and Targeted Section 3 workers.

• Supports Form 4 Qualitative Reporting and Form 6 Project Compliance Report.

*Supplemental forms (A-D) are included for businesses and workers to self-certify their Section 3 status.

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section

Exhibit 13A: Section 3 Project Implementation Plan (Form 0)

OVERVIEW

Section 3 Goals

Programmatic Responsibilities

Untitled

Grantee or Subrecipient Name 2:

Grantee or Subrecipient Name 3:

Grantee or Subrecipient Name:

Section 3 Project Implementation Plan

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios. Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Form 1*

Exhibit 13B: SECTION 3 ASSESSMENT AND CERTIFICATIONS

This form is required for ALL projects and must be submitted with bid or application for funding. Instructions to complete this form are included at the end of the form.

Project Information

Project Name/HCD Standard Agreement No.:

Project Location or Address(es):

Developer/Contractor Information:

Name of Firm: Address:

Authorized Representative: Title:

Phone: Email:

1. Check all that apply to your business:

Your business is at least 51% owned and controlled by low- or very low-income persons.

Over 75% of the total labor hours performed for your business over the past three-month period were performed by Section 3 workers.

Your business is at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

None of the above

2. Will you be hiring new employees or providing new training opportunities because of this contract? Yes No

3. Will you be using subcontractors to complete this project? Yes No

4. Is your bid/contract amount greater than $200,000? Yes No

The Section 3 threshold is triggered if total HUD program funding assistance to the project exceeds $200,000 and the project meets the definition of a Section 3 covered project. A project is determined to be a Section 3 covered project on the basis of total HUD assistance to the project rather than a contract award basis. There may be more than one contract awarded to a project, and there may be more than one project on a contract.

If response to item 4 above is YES, Section 3 requirements will be enforced on this project. Failure to comply may result in the suspension of funding. Please complete the certifications below and submit FORMS 1-4 with your bid or application for funding.

If NO, and the total amount of HUD financial assistance to the project does not exceed $200,000, Section 3 participation is strongly encouraged but not required. Please attempt to meet the Section 3 goals to the greatest extent feasible. You must still complete the certifications below as applicable and return FORMS 1 and 2 with your bid or application for funding.

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios. Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Certifications YES NO N/A

All Projects:

By completing and signing this form, I agree to comply with all applicable requirements of the Section 3 of the Housing and Urban Development Act of 1968 (24 CFR Part 75)

Does the total project amount include over $200,000 in HUD assistance? If yes, I understand that:

• I must complete and submit FORMS 1 and 2 and submit them with my bid.

• The Section 3 threshold requirements apply regardless of my bid amount.

Projects over

$200K:

I have included/will include the Section 3 Clause (FORM 5) in all subcontracts for which Section 3 compliance is required.

I understand that I am required to submit periodic and/or final Section 3 reports (FORM 6) and associated forms, as applicable (FORMS 2, 3 and 4), along with supporting documentation when requested.

I agree that my company has made and will continue to make efforts “to the greatest extent feasible” to comply with Section 3 as required by HUD.

I understand the minimum numerical goals for Section 3 participation, and I have completed FORMS 1 through 4 and attached them to my bid.

I declare that all statements contained in this form and any accompanying documents are true and correct, and made with full knowledge that all statements given are subject to investigation and that any false or dishonest answer to any question may be grounds for denial or revocation of funding or other penalties as prescribed under 18 U.S. Code § 1001.

Authorized Representative Signature Date

Instructions are provided below to assist with completing Form 1 - Section 3 Assessment and Certifications.

Requirement: This form is required for ALL construction related projects and must be submitted with bid or application for funding.

Definitions

YouthBuild: Community-based apprenticeship program administered by the U.S. Department of Labor that provides job training and educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.

Section 3 projects are housing rehabilitation, housing construction, and other public construction projects assisted under U.S. Housing and Urban Development (HUD) programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds $200,000 of housing and community development financial assistance. HUD allocates CDBG funds to HCD.

Per 24 CFR 75.3(a)(2)(i), the project is defined as the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.

Project definition applicability for HCD Programs:

• Owner Occupied Rehabilitation and Reconstruction Program (OOR): Each home to be rehabilitated or reconstructed is the separate project site.

• Multifamily Housing Program (MHP): The site or scattered sites under common ownership, management, and financing.

• Infrastructure Projects: The site or sites together within the jurisdiction of a general unit of local government that are under common ownership, management, and financing.

Project Information

Project Name

• Provide the name of the project if applicable and/or indicate the nature of the construction.

• HCD programs that include construction activities examples are below:

o Owner Occupied Rehab (OOR) o Multifamily Housing Program (MHP) o Workforce Development (Only applicable if construction of public facilities is included.)

Project Location or Address(es)

• Provide the location or addresses for the site of construction. For example, an OOR subcontractor will identify the addresses for homes being reconstructed for the OOR program. You may attach a list of project addresses to this form.

Contractor Information

• Complete this section in its entirety to provide response to general contractor information:

o Name of Firm o Address o Authorized Representative: Point of contact for Section 3 compliance.

o Title: Title for Section 3 POC o Phone o Email

Questions 1-4

1. Determine if your Business meets the criteria of a Section 3 Business Concern. Please check all that apply to your business for any criteria that can documented within the last six-month period. Check none of the above if your business does not meet any of the criteria for a Section 3 Business Concern.

o Your business is at least 51 percent owned and controlled by low- or very low-income persons.

o Over 75 percent of the labor hours performed for your business over the past three-month period were performed by Section 3 workers (see definition below).

o Your business is at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

2. Will you be hiring new employees or providing new training opportunities because of this contract? Yes/No o Potential employees will be documented on Form 3 – List of Permanent Employees. This form is submitted with the bid packet.

3. Will you be using subcontractors to complete this project? Yes/No o If your firm will utilize subcontractors, it is encouraged to directly solicit Section 3 Business Concerns (see criteria above for Section 3 Business Concerns).

o Subcontractor information will be documented on Form 2 – Subcontractor Information

4. Is your bid/contract amount greater than $200,000?

A contract amount less than $200,000 does not necessarily mean that Section 3 requirements are not triggered. The basis for Section 3 compliance is determined on a project basis rather than a contract basis.

Certifications

Developer or Contractor agrees to the following certifications:

• By completing and signing this form, I agree to comply with all applicable requirements of the Section 3 of the Housing and Urban Development Act of 1968 (24 CFR Part 75).

• I understand that I must complete and submit Forms 1 and 2 and submit them with my bid, regardless of my bid amount. I understand that the Section 3 threshold requirements for apply regardless of my bid amount, if the total amount for a construction project includes over $200,000 in HUD assistance.

• I have included/will include the Section 3 Clause (Form 5) in all subcontracts for which Section 3 compliance is required.

• I understand that I am required to submit periodic and final Section 3 reports (Form 6) as required by the applicable program requirements, associated forms as applicable (Forms 2, 3, and 4) and supporting documentation.

• I agree that my company has made and will continue to make efforts “to the greatest extent feasible” to comply with Section 3 as required by HUD.

• I understand the minimum numerical goals for Section 3 participation, and I have completed Forms 1-4 and attached them to by bid.

Project NameHCD Standard Agreement No:

Project Location or Addresses:

Name of Firm:

Address:

Authorized Representative:

Title:

Phone:

Email:

Date:

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Section 3 Project Implementation Plan*

Form 2* Exhibit 13C: SUBCONTRACTOR INFORMATION

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios. Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

This form is required for ALL projects (regardless of whether Section 3 is triggered) and must be submitted with a bid or application for funding. If a construction project is assisted with over $200,000 in HUD funds this form must be updated and re-submitted at the time of contract execution and again with the final Section 3 compliance report or with final draw request if Section 3 reports are not required to be submitted for the project. Instructions to complete this form are included at the end of the form.

Project Name Contract Execution Date Construction Start Date Today’s Date

Check the box that applies and complete the table if applicable:

This project WILL NOT utilize subcontractors.

This project MAY utilize the following subcontractors:

No.

Sect 3 Bus.

Subcontractor Name Subcontractor Address and Phone Number Trade

Subcontract Amount

Form 2

Instructions for completing Form 2 – Subcontractor Information

Requirement:

This form is required for ALL projects (regardless of whether Section 3 is triggered) and must be submitted with bid or application for funding. If financial assistance for the project exceeds $200,000 in HUD funds, this form must be updated and re-submitted at the time of contract execution and again with the final Section 3 compliance report or with the final draw request if Section 3 reports are not required to be submitted on this project.

Section 3 will only apply on a per-project basis rather than per contracted program activity.

Purpose:

A complete list of all firms, known at this time, who will subcontract on the project. This form must be updated when additional subcontractors are added to the project. This form also identifies if a subcontractor is a Section 3 Business. If a subcontractor is a verified Section 3 Business, the labor hours for all workers employed by the business can be counted as Section 3 worker labor hours. These hours will be reported on Form 6 – Project Compliance Report.

Project and Contract Information

Project Name

• Provide the name of the project if applicable and/or indicate the nature of the construction.

• HCD programs that include construction activities (please note that this list not intended to be exhaustive of all Section 3 covered activities):

o Single-family housing repair and construction programs o Multifamily Housing development programs o Public works construction (infrastructure) programs o Public services programs (only applicable if construction of public facilities is included)

Subcontractor Table

If you checked the box stating that this project may utilize subcontractors, please list all subcontractors known at this time.

Indicate in the second column if the subcontractor meets the criteria of a Section 3 Business Concern.

Section 3 Business Concerns are businesses that meet at least one of the following criteria, documented within the last six-month period:

• At least 51 percent owned and controlled by low-or very low-income persons;

• Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers (see definition below); or

• A business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

Form 2

A worker can qualify as Section 3 if they meet one of the following criteria:

• Are employed by a Section 3 business concern;

• Are a HUD YouthBuild participant; or

• Their income for the previous or annualized calendar year is below 80% of the current area median income for the area in which the worker resides. (Use the worker’s annual gross income based on AMI for a single-person household.)

Note: YouthBuild is a community-based pre-apprenticeship program administered by the U.S. Department of Labor that provides job training and educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.

Section 3 Project Implementation Plan:

Project NameRow1:

Contract Execution DateRow1:

Construction Start DateRow1:

Todays DateRow1:

Sect 3 Bus1:

Subcontractor Name1:

Subcontractor Address and Phone Number1:

Trade1:

Subcontract Amount1:

Sect 3 Bus2:

Subcontractor Name2:

Subcontractor Address and Phone Number2:

Trade2:

Subcontract Amount2:

Sect 3 Bus3:

Subcontractor Name3:

Subcontractor Address and Phone Number3:

Trade3:

Subcontract Amount3:

Sect 3 Bus4:

Subcontractor Name4:

Subcontractor Address and Phone Number4:

Trade4:

Subcontract Amount4:

Sect 3 Bus5:

Subcontractor Name5:

Subcontractor Address and Phone Number5:

Trade5:

Subcontract Amount5:

Sect 3 Bus6:

Subcontractor Name6:

Subcontractor Address and Phone Number6:

Trade6:

Subcontract Amount6:

Sect 3 Bus7:

Subcontractor Name7:

Subcontractor Address and Phone Number7:

Trade7:

Subcontract Amount7:

Sect 3 Bus8:

Subcontractor Name8:

Subcontractor Address and Phone Number8:

Trade8:

Subcontract Amount8:

Sect 3 Bus9:

Subcontractor Name9:

Subcontractor Address and Phone Number9:

Trade9:

Subcontract Amount9:

Sect 3 Bus10:

Subcontractor Name10:

Subcontractor Address and Phone Number10:

Trade10:

Subcontract Amount10:

Sect 3 Bus11:

Subcontractor Name11:

Subcontractor Address and Phone Number11:

Trade11:

Subcontract Amount11:

Sect 3 Bus12:

Subcontractor Name12:

Subcontractor Address and Phone Number12:

Trade12:

Subcontract Amount12:

Text1:

Text2:

Check Box1: Off

Check Box2: Off

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Form 3*

Exhibit 13D: LIST OF PERMANENT EMPLOYEES

This form is required for all Section 3-triggered projects (over $200,000) and must be submitted with bid or application for funding and again with the final Section 3 compliance report.

Instructions to complete this form are provided at the end of the form.

Project Name Contract Execution Date

Construction Start Date

Today’s Date

Please list all current permanent employees (both full and part-time) employed by your company (or local/regional office) as of the signature date on FORM 1, as well as employees of all subcontractors working on this project. Use additional sheets as necessary. A computer-generated employee registry can be provided in lieu of this form if it includes the worker’s name, employer and job category and indicates Section 3/targeted Section 3 status.

No. Name of Worker Employer Job Category/Trade Section 3 Worker (Y/N)

Targeted Section 3 Worker (Y/N)

Form 3

Please note that your business may be eligible for Section 3 Business certification if at least 75% of your labor hours performed on all contracts over the past three-month period were performed by employees who meet one of the following categories below:

• The worker lives within one mile of the Section 3 project (or, if fewer than 5,000 people live within one mile of the 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);

• The worker is a HUD YouthBuild participant; or

• The worker's income for the previous or annualized calendar year is below 80% of the current area median income for the area in which the worker resides. (Use the worker’s annual gross income based on AMI for a single-person household.) HUD income limits can be found at https://www.huduser.gov/portal/datasets/il.html.)

Instructions for completing Form 3 - List of Permanent Employees

This form is required for all Section 3-triggered projects (over $200,000) and must be submitted with bid or application for funding and resubmitted with the final Section 3 compliance report.

The Section 3 threshold is based on the amount of HUD financial assistance to the project rather than a contract threshold amount.

This form may serve useful to employers in tracking Section 3 workers, however other documentation should be maintained to certify Section 3 workers and Section 3 businesses.

Contractors are required, to the greatest extent feasible, to achieve the benchmarks required for the number of labor hours performed by both Section 3 workers (25 percent of total labor hours) and Targeted Section 3 workers (5 percent of total labor hours).

• 25 percent or more of all labor hours performed on the project must be worked by Section

3 workers = Section 3 labor hours divided by number of total labor hours. AND

• Five (5) percent or more of all labor hours must be worked by Targeted Section 3 workers = Targeted Section 3 labor hours divided by number of labor hours.

Project Information Section:

• Project Name: Identify the project by name if applicable and/or indicate the nature of the

• Contract Execution Date: Identify contract date applicable to general contract.

• Construction Start Date: Identify start of construction applicable to general contract.

• Today’s Date: Enter date when the form was completed.

Employee Table:

• Please list all current permanent employees (both full and part-time) employed by your company as of the signature date on Form 1 – Assessment and Certifications, as well as employees of all subcontractors working on this project. Use additional sheets as necessary.

• A computer-generated employee registry can be provided in lieu of this form if it includes the worker’s name, employer and job category and indicates Section 3/targeted Section 3 status.

• It is appropriate to include separate employee lists per subcontractor as long as the employer (subcontractor) is identified on the list.

Section 3 Worker: Y/N

Refer to Form 8 – Worker Outreach Form to determine if worker is a Section 3 worker, the worker outreach form explains how a worker is determined to be a Section 3 worker and completed by the worker noting their income level. Note that a worker may also be counted as a Section 3 worker if employed by a Section 3 business (Refer to Form 7 – Business Outreach Form for guidance on a Section 3 Business).

• A worker qualifies as Section 3 if they meet one of the following criteria:

o Are employed by a Section 3 Business Concern o Are a HUD YouthBuild participant; or o Their individual income for the previous or annualized calendar year is below 80 percent of the current area median income for the area in which the worker resides.(Use the worker’s annual gross income based on AMI for a single-person household.)

The HUD income limits for California’s counties and metro areas can be found at State and Federal Income, Rent, and Loan/Value Limits | California Department of Housing and Community Development in the section titled: CDBG, HOME and NHTF/HHC Article I - Income, Value, Subsidy, and Rent Limits.

Contact the HCD Section 3 Coordinator or the local jurisdiction awarded the funds to ensure that you are accessing the most current HUD income limits.

The most current HUD income limits are included by appendix to this Section 3 forms packet.

Targeted Section 3 Worker: Y/N

Refer to Form 8 – Worker Outreach Form to determine if worker is a Targeted Section 3 worker, the worker outreach form explains how a worker is determined to be a Targeted Section 3 worker and completed by the worker noting their income level. Note that a worker may also be counted as a Targeted Section 3 worker if employed by a Section 3 business (Refer to Form 7 – Business Outreach Form for guidance on a Section 3 business).

• A worker qualifies as a Targeted Section 3 if they meet one of the following criteria:

o Are employed by a Section 3 business concern.

https://www.hcd.ca.gov/grants-and-funding/income-limits/state-and-federal-income-rent-and-loan-value-limits o Are a HUD YouthBuild participant (see note below); or o Reside within a circle entered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census). Contact the HCD Section 3 Coordinator or the local jurisdiction (Subrecipient) awarded the to ensure that you are calculating the area for the area correctly. HUD Mapping Tool to determine service area.

Note: YouthBuild is a community-based pre-apprenticeship program administered by the U.S.

Department of Labor that provides job training and educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.

https://hud.maps.arcgis.com/apps/webappviewer/index.html?id=1d27b42dd64e4684ba74fe5bd00f9755

Exhibit 13D_List of Permanent Employees (Form 3)_Final first page.pdf

[Enter Grantee or Subrecipient Name]

Section 3 Project Implementation Plan

Exhibit 13D: LIST OF PERMANENT EMPLOYEES (Form 3)

Instructions for completing Form 3 - List of Permanent Employees

Requirement:

Purpose:

Project Information Section:

Employee Table:

Section 3 Worker: Y/N

Targeted Section 3 Worker: Y/N

Exhibit 13D_List of Permanent Employees (Form 3)_Final

[Enter Grantee or Subrecipient Name]

Section 3 Project Implementation Plan

Exhibit 13D: LIST OF PERMANENT EMPLOYEES (Form 3)*

Instructions for completing Form 3 - List of Permanent Employees

Requirement:

Purpose:

Project Information Section:

Employee Table:

Section 3 Worker: Y/N

Targeted Section 3 Worker: Y/N

Project Name:

Contract Execution Date:

Construction Start Date:

Enter date as relevant:

Name of Worker:

Employer:

Job Category/Trade:

Section 3 Worker (Y/N):

Targeted Section 3 Worker (Y/N):

Name of Worker 2:

Employer 2:

Job Category/Trade 2:

Section 3 Worker (Y/N) 2:

Targeted Section 3 Worker (Y/N) 2:

Name of Worker 3:

Employer 3:

Job Category/Trade 3:

Section 3 Worker (Y/N) 3:

Targeted Section 3 Worker (Y/N) 3:

Name of Worker 4:

Employer 4:

Job Category/Trade 4:

Section 3 Worker (Y/N) 4:

Targeted Section 3 Worker (Y/N) 4:

Name of Worker 5:

Employer 5:

Job Category/Trade 5:

Section 3 Worker (Y/N) 5:

Targeted Section 3 Worker (Y/N) 5:

Name of Worker 6:

Employer 6:

Job Category/Trade 6:

Section 3 Worker (Y/N) 6:

Targeted Section 3 Worker (Y/N) 6:

Name of Worker 7:

Employer 7:

Job Category/Trade 7:

Section 3 Worker (Y/N) 7:

Targeted Section 3 Worker (Y/N) 7:

Name of Worker 8:

Employer 8:

Job Category/Trade 8:

Section 3 Worker (Y/N) 8:

Targeted Section 3 Worker (Y/N) 8:

Name of Worker 9:

Employer 9:

Job Category/Trade 9:

Section 3 Worker (Y/N) 9:

Targeted Section 3 Worker (Y/N) 9:

Name of Worker 10:

Employer 10:

Job Category/Trade 10:

Section 3 Worker (Y/N) 10:

Targeted Section 3 Worker (Y/N) 10:

Name of Worker 11:

Employer 11:

Job Category/Trade 11:

Section 3 Worker (Y/N) 11:

Targeted Section 3 Worker (Y/N) 11:

Name of Worker 12:

Employer 12:

Job Category/Trade 12:

Section 3 Worker (Y/N) 12:

Targeted Section 3 Worker (Y/N) 12:

Enter Grantee or Subrecipient Name:

Form 4* Exhibit 13E: DOCUMENTATION OF QUALITATIVE EFFORTS

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

This form is required for all Section 3‐triggered projects (over $200,000) and must be submitted with bid or application for funding, as well as with all periodic or final compliance reports that indicate numeric goals were not met. Please fill out this form completely. Attach additional pages if needed. Instructions to complete this form are included at the end of the form.

Instructions for Section 3 Coordinator: Review efforts undertaken by the contractor prior to contract execution to bring on subcontractors certifying as Section 3 Businesses. This provides a baseline to track efforts to ensure successful reporting of Section 3 benchmarks. Review qualitative efforts performed on a prescribed, periodic basis and report within HUD’s reporting system, all in accordance with the applicable federal grant requirements. Review final compliance report to summarize qualitative efforts for final reporting, as applicable with HUD’s reporting system.

Project Name Contract Execution Date

Construction Start

Today’s Date

1. Describe all efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, to Section 3 workers. Attach additional pages if needed.

Attach supporting documentation such as:

• Copies of all publications, notices, pictures of posted notices, and other outreach materials.

• List of all Section 3 workers that responded to your outreach efforts (e.g., submitted job applications, phone logs, etc.); were any of them hired? If not, please explain why.

2. Describe all efforts made to notify Section 3 businesses of any subcontracting opportunities generated by HUD financial assistance for this project, to the greatest extent feasible. Attach additional pages if needed.

Attach supporting documentation such as:

• Section 3 Business List used in solicitation. Must have been provided by prior to solicitation and should be no more than 30 days old at the time of solicitation.

• List of Section 3 business included in solicitation and documentation of efforts (emails, letters, phone, logs, etc.).

• List of Section 3 businesses that responded to your solicitation and/or outreach efforts; were any of them hired? If not, please explain why.

• Copies of all publications, notices, pictures of posted notices, and any other outreach material utilized.

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

3. Describe all additional qualitative efforts made to comply with Section 3 requirements. See below for examples. Attach all applicable supporting documentation.

4. If there are employment opportunities associated with your project, include a draft of the proposed signage. Section 3 signage should be posted at the construction site, and HCD may request a photo of the signage as evidence of qualitative efforts made. Signage must be large enough to be visible from the street, and include the project street address within the photo. The sign must (a) identify the name of the project, (b) state the project is a HUD Section 3 Project, and (c) include the name, phone number and email address of an appropriate point of contact regarding employment opportunities.

Examples of Qualitative Efforts

• Engage in outreach efforts to generate job applicants who are Public Housing Targeted Section 3 workers.

• Engage in outreach efforts to generate job applicants who are (Other Housing and Community Development Funding) Targeted Section 3 workers.

• Provide direct, on-the-job training or apprenticeship opportunities.

• Provide indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

• Provide technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

• Provide assistance for or connect Section 3 workers to supportive and job placement services which help with drafting resumes, preparing for interviews, and finding job opportunities.

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

• Hold one or more job fairs.

• Provide or refer Section 3 workers to supportive services that can provide direct services or referrals.

• Provide or refer Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities such as health screenings, interview clothing, uniforms, test fees, and transportation).

• Assist Section 3 workers with finding child care.

• Provide assistance to apply for or attend community college or a four‐year educational institution.

• Provide assistance to apply for, or attend, a vocational/technical training.

• Help Section 3 workers to obtain financial literacy training and/or coaching.

• Engage in outreach efforts to identify and secure bids from Section 3 business concerns.

• Provide technical assistance to help Section 3 business concerns understand and bid on contracts.

• Divide contracts into smaller jobs to facilitate participation by Section 3 business concerns.

• Provide bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

• Provide or connect Section 3 workers to training on computer use or online technologies.

• Promote use of business registries designed to create opportunities for disadvantaged and small businesses.

• Outreach, engagement, or referrals with the state one‐stop system as defined in Section

121(e)(2) of the Workforce Innovation and Opportunity Act.

• Other:

Form 4

Instructions for completing Form 4 – Qualitative Efforts

This form is required for all Section 3-triggered projects (over $200,000 provided by HUD financial assistance) and must be submitted with a bid or application for funding. Attach additional pages if needed. The numeric goals for achieving the HUD established benchmark for Section 3 are as follows:

• Section 3 Worker hours = 25 percent of the total of all labor hours performed on the project.

• Targeted Section 3 Workers hours = 5 percent of all labor hours performed on the project.

Contractors and Developers with direct agreements with HCD may submit this form as backup documentation in HCD’s grant management system(s) or as part of required, periodic reporting.

Contractors contracted with HCD’s subrecipient, a local government jurisdiction, will submit required forms to the jurisdiction, who will then submit a comprehensive report package to HCD in HCD’s grant management system(s) or as part of required, periodic reporting.

Different grants/programs may require reporting at different intervals and through different reporting processes, but the information requested within this form is the same for all Section 3 covered projects.

General Project and Contract Information

• Project Name: Provide project name, if applicable, and/or indicate the nature of the

• Contract Execution Date: Enter the contract execution date for the general/prime contract.

• Construction Start Date: Enter the start of construction for the general/prime contract.

• Today’s Date: Enter relevant date.

Questions:

1. Describe all efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, to Section 3 workers. Attach additional pages if needed.

a. A Section 3 Worker is defined in 24 CFR Part 75.5 as:

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

• The worker’s income for the previous or annualized calendar year is below the income limit established by HUD.

• The worker is employed by a Section 3 Business Concern, or

• The worker is a YouthBuild participant.

Note: Targeted Section 3 workers are Section 3 workers meeting the criteria to verify a Section 3 worker or reside in a one-mile radius of the project’s service area or neighborhood.

b. Attach supporting documentation such as:

Copies of all publications, notices, picture of posted notices, and other outreach materials that were used for targeted outreach to provide employment and other economic opportunities to Section 3 workers and Section 3 Business Concerns.

All completed Section 3 Worker Outreach forms (Form 8) to document outreach efforts.

2. Describe all efforts made to notify Section 3 businesses of any subcontracting opportunities generated by HUD financial assistance for this project, to the greatest extent feasible. Attach additional pages if needed.

a. 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:

• It is at least 51 percent owned and controlled by low-or very low-income persons;

• Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers (see criteria above for Section 3 worker); or

• 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.

b. Attach all supporting documentation such as:

Section 3 Business List used solicitation (Request assistance from this list from

(insert Grantee or Subrecipient).

Documentation of all efforts (emails, letters, phone logs, etc.).

List of Section 3 businesses that responded to your solicitation and/or outreach efforts; identify all Section 3 Businesses that were contracted, if you did not contract with them, please explain why.

Business Outreach forms (Form 7) completed by the potential subcontractor serve as documentation for these outreach efforts.

3. Describe all additional qualitative efforts made to comply with Section 3 requirements. Attach all applicable supporting documentation. Refer to the examples of qualitative efforts listed on the form below:

a. Engage in outreach efforts to generate job applicants who are Public Housing Targeted Section 3 workers.

b. Engage in outreach efforts to generate job applicants who are (Other Housing and Community Development Funding) Targeted Section 3 workers.

c. Provide direct, on-the-job training or apprenticeship opportunities.

d. Provide indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

e. Provide technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

f. Provide assistance for or connect Section 3 workers to supportive and job placement services which help with drafting resumes, preparing for interviews, and finding job opportunities.

g. Hold one or more job fairs.

h. Provide or refer Section 3 workers to supportive services that can provide direct services or referrals.

i. Provide or refer Section 3 workers to services supporting work readiness and retention

(e.g., work readiness activities such as health screenings, interview clothing, uniforms, test fees, and transportation).

j. Assist Section 3 workers with finding child care.

k. Provide assistance to apply for or attend community college or a four‐year educational institution.

l. Provide assistance to apply for, or attend, a vocational/technical training.

m. Help Section 3 workers to obtain financial literacy training and/or coaching.

n. Engage in outreach efforts to identify and secure bids from Section 3 business concerns.

o. Provide technical assistance to help Section 3 business concerns understand and bid on contracts.

p. Divide contracts into smaller jobs to facilitate participation by Section 3 business concerns.

q. Provide bonding assistance, guaranties, or other efforts to support viable bids from

Section 3 business concerns.

r. Provide or connect Section 3 workers to training on computer use or online technologies.

s. Promote use of business registries designed to create opportunities for disadvantaged and small businesses.

t. Outreach, engagement, or referrals with the state one‐stop system as defined in Section

u. Other:

4. If there are employment opportunities associated with your project, include a draft of the proposed signage.

a. Section 3 signage should be posted at the construction site. The signage must be large enough to be visible from the street. The sign must:

• Identify the name of the project

• State the project is a HUD Section 3 covered project, and

• Include the name, phone number, and email address of an appropriate point of contract regarding employment opportunities.

Project NameRow1:

Contract Execution DateRow1:

Construction Start DateRow1:

Todays DateRow1:

job applications phone logs etc were any of them hired If not please explain why:

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examples Attach all applicable supporting documentation:

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Form 5*

Exhibit 13F: SECTION 3 CONTRACT CLAUSE

*The Section 3 implementation plan includes Forms 0-8 and supplemental forms A-D. Please note that while this represents the full Section 3 plan, not all forms may be applicable, and use of forms are based on individual construction scenarios.

Note: A separate, written Section 3 plan is not required, but this plan template is provided as a best practice to ensure Section 3 compliance.

Contractor shall comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.

1701u) and the implementing regulations in 24 CFR Part 75 and 85 FR 61562. Section 3 requires that employment and other economic opportunities arising in connection with housing rehabilitation, housing construction, or other public construction projects shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be given to low- and very low-income persons.

All Section 3 covered contracts and subcontracts must include the following clause:

I. The work to…