HUD_Federal_Section_3_Pkge.pdf
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- 2025-IFB-MS-0055
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About this file
This is a HUD Section 3 Federal Requirements package issued by the City of Pasadena's Housing Department establishing compliance guidelines for employment and contracting opportunities on HUD-assisted projects. Section 3, codified in 24 CFR Part 75, mandates that employment and economic opportunities generated by HUD financial assistance be directed to low- and very low-income persons, particularly housing assistance recipients. The requirements apply to HUD housing and community development assistance used for housing rehabilitation/construction and public construction projects exceeding $200,000, with compliance evaluated through labor hours rather than new hires. All bidders must address Section 3 employment and contracting benchmarks in their proposals, with 15 to 25 percent of available evaluation points reserved for Section 3 preference and feasibility strategy assessments. The document defines Section 3 workers as low or very low-income individuals, employees of Section 3 business concerns, or YouthBuild participants, while targeted Section 3 workers must be employed by Section 3 business concerns or reside within the project neighborhood or service area (one-mile radius). Section 3 business concerns are defined as entities with at least 51 percent ownership by low-income or very low-income persons, current public housing or Section 8-assisted housing residents, or those with over 75 percent of labor hours performed by Section 3 workers within the prior three-month period.
Contractors must meet minimum benchmarks of 25 percent of total labor hours performed by Section 3 workers and 5 percent by targeted Section 3 workers, or demonstrate qualitative efforts to assist low and very low-income persons with employment and training opportunities. Professional services requiring advance degrees or professional licensing are excluded from Section 3 labor hour calculations, though contractors may earn bonus credit for professional services performed by Section 3-qualified workers. Required compliance documentation submitted with bids includes Section 3 Business Concern Certification forms, Notice of Section 3 Commitment (posted at jobsites), and Section 3 Economic Opportunity Plans for non-Section 3 businesses. The City retains five percent of contract amounts pending completion of the Labor Standards Enforcement File and final clearance. Non-compliance may result in contract termination, debarment, or suspension from future HUD-assisted contracts. Local Section 3 resources in Pasadena include the City of Pasadena Housing Department, Foothill Workforce Development Board, and Pasadena Community Job Center. Complaints alleging non-compliance must be filed with HUD's Assistant Secretary of Fair Housing and Equal Opportunity within 180 days, with jurisdiction held by the San Francisco Regional Office covering California and neighboring states.
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Section 3 Federal Requirements Information
1. Section 3 Purpose. Section 3 is a provision of the Housing and Urban Development (HUD)
Act of 1968. Found under 24 CFR Part 75, the purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD financial assistance are, to the greatest extent feasible, directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing.
2. Section 3 Obligation. HUD housing and community development assistance used for housing rehab/construction, public construction above $200,000. It focuses on labor hours instead of new hires creating an incentive for employers to invest in and retain their newly hired low-income workers.
3. City's Efforts to Award to Section 3 Business Concerns (24 CFR 75.25(b)). All bidders must address the Section 3 employment and contracting benchmarks to be considered in compliance with HUD.
Procurement under the Competitive Proposal Method of procurement (Request for
Proposal - RFP)
1) For contracts and subcontracts awarded under the competitive proposals method of procurement (2 CFR 200.320), a Request for Proposals (RFP) shall identify all evaluation factors (and their relative importance) to be used to rate proposals.
2) One of the evaluation factors shall address both the preference for Section 3 business concerns and the acceptability of the strategy for meeting the greatest extent feasible requirement (Section 3 Economic Opportunity Plan), as disclosed in proposals submitted by all business concerns (Section 3 and non-section 3 business concerns).
This factor shall provide for a range of 15 to 25 percent of the total number of available points to be set aside for the evaluation of these two components.
4. Section 3 Definitions
4.1. Section 3 Project (75.3(a)(2))
4.1.1. The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. Applies to the entire project, regardless of whether the project is fully or partially assisted under HUD.
4.2. Section 3 Worker (75.5)
4.2.1. Any worker who currently fits, or when hired within the past five years (not before
11/30/20) fit, at least one of the following categories, as documented:
A low or very low-income worker, or
Employed by a Section 3 business concern; or
A Youthbuild participant
4.3. Section 3 Targeted Worker (75.5)
Worker employed by a Section 3 business concern; or
Currently fits or when hired fit 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
(one-mile radius of project site) Youthbuild participants
4.4. Section 3 Business Concern (75.5)
4.4.1. Businesses that meet one of the following criteria within the last six months:
At least 51% owned and controlled by low-income or very low-income persons; or
Over 75% of labor hours performed for the business over the prior 3-month period are performed by Section 3 workers; or
51% or more owned and controlled by current residents of public housing or
Section 8-assisted housing
A business may register as a Section 3 business through HUD’s Section 3 Business Registry1.
5. Section 3 Benchmark Requirements
5.1. Certification that the following benchmarks are met or exceeded is considered in compliance by HUD (in the absence of evidence to the contrary):
25% of total labor hours worked by Section 3 workers; and
5% of total labor hours worked by Targeted Section 3 workers
5.2. Professional Service Labor Hour
5.2.1. Non-construction services that require an advance degree or professional licensing are excluded from Section 3.
5.2.2. BONUS: Contractor/subcontractor may count any work performed by a professional services
Section 3 worker or Targeted Section 3 worker as Section 3 labor hours. However, do not count professional services as part of the total labor hours.
6. Section 3 Required Reporting
6.1. The contractor/subcontractor shall maintain all records, reports, and other documentation demonstrating its efforts to achieve the Section 3 benchmark requirements. This includes the contractor’s subcontracting activities to achieve Section 3 goals. Such records shall identify the name and business address to each Section 3 subcontractor or vendor and the total dollar amount actually paid each Section 3 subcontractor or vendor with supporting documentation.
6.1.1.1. Section 3 Business Concern Certification for Contracting form (must be submitted with Bid)
6.1.1.2. Notice of Section 3 Commitment (must be submitted with Bid and posted at jobsite)
6.1.1.3. Section 3 Economic Opportunity Plan (must be submitted with Bid if not a Section 3
Business Concern).
6.1.1.4. Section 3 Worker Certification (must be submitted with 1st weekly certified payroll that the Section 3 worker is reported)
6.1.1.5. Section 3 Economic Opportunity Report (submit with Final Certified Payroll Report or June 30th, whichever comes first)
1 HUD’s Section 3 Business Registry https://hudapps.hud.gov/OpportunityPortal/ https://hudapps.hud.gov/OpportunityPortal/ https://hudapps.hud.gov/OpportunityPortal/
6.2. Qualitative Reporting (75.25(b))
If unable to meet benchmark goals, must describe efforts taken to meet requirements with evidence that they have made qualitative efforts to assist low and very low-income persons with employment and training opportunities.
7. Contractor’s Efforts to Comply with Section 3 Requirements
7.1. Examples of the contractor’s efforts to offer training or employment opportunities to
Section 3 workers include:
7.1.1. Entering into “first Source” hiring agreements with organizations representing Section 3 workers.
7.1.2. Sponsoring a HUD-certified “Step Up” employment and training program for Section 3 workers.
7.1.3. Establishing training programs, which are consistent with the requirements of the Department of Labor, for public and Indian housing residents and other Section 3 workers in the building trades.
7.1.4. Advertising the training and employment positions by distributing flyers (which identify the positions to be filled, the qualifications required, and where to obtain additional information about the application process) to every occupied dwelling unit in the housing development or developments where Section 3 workers reside.
7.1.5. Advertising the training and employment positions by posting flyers (which identify the positions to be filled, the qualifications required, and where to obtain additional information about the application process) in common area or other prominent areas of the housing development or developments. For housing authorities, post such advertising in the housing development or developments where Section 3 workers reside; for all other recipients post such advertising in the housing development or developments and transitional housing in the neighborhood or service area of the Section 3 project.
7.1.6. Contacting resident councils, resident management organizations, or other resident organizations, where they exist, in the housing development or developments Section 3 workers reside, and community organizations in HUD-assisted neighborhoods, to request the assistance of these organizations in notifying residents of the training and employment positions to be filed.
7.1.7. Sponsoring (scheduling, advertising, financing, or providing in-kind services) a job informational meeting to be conducted by a housing authority or contactor representative or representatives at a location in the housing development or developments where Section 3 workers reside or in the neighborhood or service area of the Section 3 project.
7.1.8. Arranging assistance in conducting job interviews and completing job applications for residents of the housing development or developments where Section 3 workers reside and in the neighborhood or service area in which a Section 3 project is located.
7.1.9. Arranging for a location in the housing development or developments where Section 3 workers reside, or the neighborhood or service area of the project, where jobs applications may be delivered to and collected by a recipient or contractor representative or representatives.
7.1.10. Conducting job interviews at the housing development or developments where Section 3 workers reside, or at a location within the neighborhood or service area of the Section 3 project.
7.1.11. Contacting agencies administering HUD Youthbuild programs, and requesting their assistance in recruiting HUD Youthbuild program participants for the housing authority’s or contractor’s training or employment positions.
7.1.12. Consulting with State and County local agencies administering training programs funded through Job Training Partnership Act (JTPA) or Joblinks, probation and parole agencies, unemployment compensation programs, community organizations, and other officials or organizations to assist with recruiting Section 3 residents for the housing authority’s or contractor’s training and employment positions.
7.1.13. Advertising the job dot be filled through local media, such as community television networks, newspapers of general circulations, and radio advertising.
7.1.14. Employing a job coordinator, or contracting with a business concern that is licensed in the field of job placement (preferably one of the Section 3 business concerns), that will undertake, on behalf of the housing authority, other recipient, or contractor, the efforts to match eligible and qualified Section 3 residents with the training and employment positions that the housing authority or contractor intended to fill.
7.1.15. Where there are more qualified Section 3 residents than there are positions to be filled, maintaining a file of eligible qualified Section 3 residents for future employment positions.
7.1.16. Undertaking job counseling, education, and related programs in association with local educational institutions.
7.1.17. Undertaking such continued job training efforts as may be necessary to ensure the continued employment of Section 3 workers previously hired for employment opportunities.
7.1.18. After selection of bidders but prior to execution of contracts, incorporating into the contract a negotiated provision for a specific number of public housing or other Section 3 workers to be trained or employed on the Section 3 projects.
7.1.19. Coordinating plans and implementation of economic development (e.g., job training and preparation, business development assistance for residents) with the planning for housing and community development.
7.2. Examples of Contractor’s Efforts to Award Contracts to Section 3 Business Concerns include:
7.2.1. Utilizing procurement procedures for Section 3 business concerns similar to those provided in
24 CFR Part 905 for business concerns by Native Americans.
7.2.2. In determining the responsibility of potential contractors, consider their record of Section 3 compliance as evidenced by past actions and their current plans for the pending contract.
7.2.3. Contacting business assistance agencies, minority contractors associations, and community organizations to inform them of contracting opportunities and requesting their assistance in identifying Section 3 businesses which may solicit bids or proposals for contracts for work in connection with Section 3 projects.
7.2.4. Advertising contracting opportunities by posting notices, which provide general information, in the common areas or other prominent areas of the housing development or developments owned and managed by the housing authority.
7.2.5. For housing authorities, contacting resident councils, resent management corporations, or other resident organizations, where they exist, and requesting their assistance in identifying
Section 3 business concerns.
7.2.6. Providing written notice to all known Section 3 business concerns of the contracting opportunities. This notice should be in sufficient time to allow the Section 3 business concern to respond to the bid invitations or request for proposals.
7.2.7. Following up with Section 3 business concerns that have expressed interest in the contracting opportunities by contacting them to provide additional information on the contracting opportunities.
7.2.8. Coordinating pre-bid meetings at which Section 3 business concerns could be informed of upcoming contracting and subcontracting opportunities.
7.2.9. Carrying out workshops n contracting procedures and specific contract opportunities in a timely manner so that Section 3 business concerns can take advantage of upcoming contracting and subcontracting opportunities.
7.2.10. Advising Section 3 business concerns as to where they may seek assistance to overcome limitation such as inability to obtain bonding, lines of credit, financing, or insurance.
7.2.11. Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery scheduled in ways to facilitate the participation by Section 3 business concerns.
7.2.12. Where appropriate, breaking out contract work items to economically feasible units to facilitate participation by Section 3 business concerns.
7.2.13. Contacting agencies administering HUD Youthbuild programs and notifying these agencies of the contracting opportunities.
7.2.14. Advertising the contracting opportunities through trade association papers and newsletters, and through the local media, such as community television networks, newspapers of general circulation, and radio advertising.
7.2.15. Developing a list of eligible Section 3 business concerns.
7.2.16. Establishing or sponsoring programs designed to assist residents of public or Indian housing in the creation and development of resident-owned business.
7.2.17. Establishing numerical goals (number of awards and dollar amount of contract) for award of contracts to Section 3 business concerns.
7.2.18. Supporting businesses that provide economic opportunities to low-income persons by linking them to the support services available through the Small Business Administration, the
Department of Commerce, and comparable agencies at the State and local levels.
7.2.19. Encouraging financial institutions in carrying out their responsibilities under the Community
Reinvestment Act, to provide no- or low-interest loans for providing working capital and other financial business needs.
7.2.20. Actively supporting joint ventures with Section 3 business concerns.
7.2.21. Actively supporting the development or maintenance of business incubators that assist Section
3 business concerns.
7.3. Local Section 3 Pasadena Agencies
7.3.1. City of Pasadena – Housing Department
649 N. Fair Oaks Avenue Suite 202
Pasadena, CA 91103
(626) 744-8300 www.cityofpasadena.net/housing
7.3.2. Foothill Workforce Development Board (FWDB)
1207 E. Green Street
Pasadena, CA 91106
(626) 796-5627 www.fwdbworks.org
7.3.3. Pasadena Community Job Center
500 N. Lake Avenue
Pasadena, CA 91101
(626) 440-0112 www.pasadenajobcenter.com http://www.cityofpasadena.net/housing http://www.fwdbworks.org/ http://www.pasadenajobcenter.com/
8. Section 3 Complaint Procedures
8.1. A complaint may be filed by Section residents, Section 3 business concerns, or parties alleging non-compliance with the Section 3 regulations by the City or contractor.
Complaints are reviewed and investigated by the Assistant Secretary of Fair Housing and Equal Opportunity and, where appropriate voluntary resolutions are sought. Those complaints that are not resolved voluntarily may result in an administrative hearing. A complaint alleging a violation of Section 3 requirements shall be processed as follows:
8.1.1. A complaint must be filed with the Assistant Secretary of Fair Housing and Equal Opportunity, U.S. Department of Housing & Urban Development.
8.1.2. A complaint must be received not later than 180 days from the date of action or omission upon which the complaint is based, unless the time for filing is extended by the Assistant Secretary for good cause shown.
8.1.3. Each complaint must be in writing, signed by the complainant, and include:
The complainant’s name and address;
The name and address of the respondent; and
A description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance.
8.1.4. A complaint may provide information to be contained in a complaint by telephone to
HUD or any HUD field office, and HUD will reduce the information provided by telephone to writing on the prescribed complaint form and send the form to the complaint for signature.
8.1.5. Where to file your complaint:
Online at https://www.hud.gov/section3.
Please fax or mail your complaint to the appropriate HUD Regional Office of Fair
Housing and Equal Opportunity that has jurisdiction over the state for which you are located or where the alleged violation occurred. Inquiries regarding the status of your complaint should be directed to the appropriate Regional office of FHEO by telephone or email.
SAN FRANCISCO REGIONAL OFFICE
U.S. Department of Housing and Urban
Development Pacific/Hawaii Office
600 Harrison Street Third Floor
San Francisco, CA 94107
(415) 489-6536 (800) 347-3739 Fax: (415) 489-6560
Email: complaints_office_09@hud.gov *Covers the following states: Arizona, California, Guam, Hawaii, and Nevada https://www.hud.gov/program_offices/fair_housing_equal_opp https://www.hud.gov/program_offices/fair_housing_equal_opp https://www.hud.gov/section3 mailto:complaints_office_09@hud.gov
9. Section 3 Non-Compliance
9.1. Noncompliance with HUD’s regulations in 24 CFR Part 755 may result in sanctions, terminations of this contract for default, and debarment or suspension from future HUD assisted contracts.
9.1.1. 5% Retention The City will retain five percent (5%) of the contract amount for this project until the Labor Standards Enforcement File has been completed and final clearance is issued.
Five percent (5%) of the total construction award will be retained from the prime contractor by the City to allow for the availability of funds to remedy monetary liabilities that can result from violations of Section 3 requirements or the Davis- Bacon and Related Acts and Federal Labor Standards Provisions.
Submit with Bid
Section 3 Business Concern
Certification for Contracting Instructions: Enter the following information and select the criteria that applies to certify your business’ Section 3 Business Concern status.
Business Information
Name of Business
Address of Business
Name of Business Owner
Phone Number of Business Owner
Email Address of Business Owner
Preferred Contact Information
☐ Same as above
Name of Preferred Contact
Phone Number of Preferred Contact
Type of Business (select from the following options):
☐Corporation ☐Partnership ☐Sole Proprietorship ☐Joint Venture
Select from ONE of the following three options below that applies:
☐ At least 51 percent of the business is owned and controlled by low- or very low-income persons.
☐ 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.
☐ Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers.
OR
☐ Written Commitment (Section 3 Economic Opportunity Plan), outline intentions to hire section 3 workers and/or subcontract with Section 3 Business Concerns.
(front side)
Submit with Bid
Business Concern Affirmation
I affirm that the above statements (on the front side of this form) 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 the City of Pasadena 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.
Print Name:
Signature: Date: __________
*Certification expires within six months of the date of signature
Information regarding Section 3 Business Concerns can be found at 24 CFR 75.5
FOR ADMINISTRATIVE USE ONLY
Is the business a Section 3 business concern based upon their certification?
□YES □NO
EMPLOYERS MUST RETAIN THIS FORM IN THEIR SECTION 3 COMPLIANCE FILE
FOR FIVE YEARS.
(backside) https://www.ecfr.gov/cgi-bin/text-idx?SID=569b66a547528bf6c5c47f75b825cb94&mc=true&node=pt24.1.75&rgn=div5#se24.1.75_15
The City of Pasadena
Section 3 Income Limits
Eligibility Guidelines
The worker’s income must be at or below the amount provided below for an individual household of 1 (regardless of actual household size).
Individual Income Limits for
Los Angeles County FY 2022
Income Limits Category
FY 2022
Income Limits
Extremely Low Income Limits (30%)
$25,050
Very Low Income Limits (50%)
$41,700
Low Income Limits (80%)
$66,750
See https://www.huduser.gov/portal/datasets/il.html for most recent income limits.
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:
• A resident of public housing; or
• A resident of other public housing projects or Section 8-assisted housing;
or
• A YouthBuild participant.
https://www.huduser.gov/portal/datasets/il.html
Notice of Section 3 Commitment Federal Compliance Form – Must be submitted with Bid and posted at Jobsite
TO: ________________________________________________________
(Name of Labor Union, Workers Representative, etc.
(Address)
Name of Business (Contractor): ___________________________________________________
Project Name: ______________________________ Project Number: ____________________
The Undersigned currently holds a contract with _____________________________________ involving Block Grant (CDBG) funds from the U. S. Department of Housing and Urban Development or a subcontract with a prime contractor holding such contract.
You are advised that under the provisions of the above contract or subcontract and in accordance with Section 3 of the Housing and Urban Development Act of 1968, the undersigned is obligated to the greatest extent feasible, to give opportunities for employment and training to lower income residence of the CDBG-assisted project area and to award contracts for work on the project to business concerns which are located in or are owned in substantial part by project area residence.
Regarding employment opportunities for Section 3, the minimum number and job titles are:
Minimum Number
Job Classification
Regarding job referrals, request that consideration be given, to the greatest extent feasible, to assignment of persons residing in the service area or neighborhood in which the project is located.
The anticipated date the work will begin is ___________ . For additional information, you may contact ________________________ , _____________________ at ( ) .
Contact Person’s Name Title
This notice is furnished to you pursuant to the provisions of the above contract or subcontract and Section 3 of the Housing and Urban Development Act of 1968. Copies of this notice will be posted by the undersigned in conspicuous places available to employees or applicants for employment.
_______________________________ By: __________________________________ (Print Name) (Signature)
(Date) (Title)
Section 3 Economic Opportunity Plan Federal Compliance Form – Must be submitted with Bid if Written Commitment Box is checked on Section 3 Business Concern Certification
1. Name and Address of Contractor: 2. Federal Identification: (Contract/Award No.) 3. Dollar Amount of Award:
4. Contact Person: 5. Phone: (include Area Code)
6. Reporting Period: 7. Date Report Submitted
8. Program Code: (Use a separate sheet for each Program Code)
Part I: Employment and Training Commitment
JOB
CLASSIFICATION
TOTAL PROJECT
LABOR HOURS
SECTION 3
LABOR HOURS
% of Total Project Labor Hours
Performed by Section 3 Workers
Professionals %
Technicians %
Office/Clerical %
Trade: %
Trade: %
Trade: %
Trade: %
Total: %
NAME OF
SECTION 3 BUSINESS CONCERN
SPECIFY
CONSTRUCTION CONTRACT
Part II: Contract Award Commitment to Section 3 Businesses (Subcontractors)
CONTRACT
AMOUNT
TOTAL $
Percentage of the total dollar amount to be awarded to Section 3 Business
Concerns: %
Program Codes
1. Flexible Subsidy 2. Section 202/811 3. Public/Indian Housing Development, Operation and Modernization 4. Homeless Assistance 5. HOME
6. HOME - State Administered 7. CDBG – Entitlement 8. CDBG - State Administered 9. Other CD Programs 10. Other Housing Programs
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.
Eligibility for Section 3 Worker or Targeted Section 3 Worker Status
A Section 3 worker seeking certification shall self-certify and submit this form to the recipient contractor or subcontractor, that the person is a Section 3 worker or Targeted Section 3 Worker as defined in 24 CFR Part 75.
Instructions: Enter/select the appropriate information to confirm your Section 3 worker or Targeted Section 3 Worker status.
Employee Name:
1. Are you a resident of public housing or a Housing Choice ☐YES ☐NO Voucher Holder (Section 8)?
2. Are you a resident of the City of Pasadena ☐YES ☐NO
3. In the field below, select the amount of individual income you believe you earn on an annual basis.
☐ Less than $10,000 ☐ $30,001 - $40,000 ☐ More than $66,250
☐ $10,001 - $20,000 ☐ $40,001 - $50,000
☐ $20,001 - $30,000 ☐ $50,001 - $60,000
Select from ONE of the following two options below:
I qualify as a:
☐ Section 3 Worker (as defined on page 4 of Section 3 Worker Certification Form)
☐ Targeted Section 3 Worker (as defined on pages 4-5 of Section 3 Worker Certification Form)
(frontside)
Employee Affirmation
I affirm that the above statements (on front side of this form) 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.
Employee Address:
Print Name: Date Hired: _______
Signature: Date:
FOR ADMINISTRATIVE USE ONLY
Is the employee a Section 3 worker based upon their self-certification? □YES □NO
Is the employee a Targeted Section 3 worker based upon their self-certification? □YES □NO
Was this an applicant who was hired as a result of the Section 3 project? □YES □NO
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.
(backside)
The City of Pasadena Section 3 Income Limits
Eligibility Guidelines The worker’s income must be at or below the amount provided below for an individual (household of 1) regardless of actual household size.
Individual Income Limits for County of Los Angeles FY 2022
Income Limits Category
FY 2022
Income Limits
Extremely Low Income Limits
(30%) Below $25,050/yr
Very Low Income Limits (50%)
Below $41,700/yr
Low Income Limits (80%)
Below $66,750/yr
See https://www.huduser.gov/portal/datasets/il.html for most recent income limits.
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 (for public housing)
• 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:
• A resident of public housing; or
• A resident of other public housing projects or Section 8-assisted housing;
or
Targeted Section 3 Worker Definition (for housing and community development)
• 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 (not past 11/30/20):
• Living within the service area or the neighborhood of the project, as defined in 24 CFR 75.5
Section 3 Economic Opportunity Report Federal Compliance Form – Submit with Final Certified Payroll Report or on June 30 th, whichever occurs first.
1. Contractor Name and Address 2. Project Number: 3. Dollar Amount of Contract:
4. Contractor Contact Person: 5. Phone: (include Area Code)
6. Date Report Submitted: 7. Date(s) Covered:
8. CSLB License Number and Class: 9. Federal EIN:
Part I: Employment & Training Opportunities provided to low-income individuals (Minimum Goal: 25% of total project labor hours by Section 3 workers & 5% of total project labor worked hours by Targeted Section 3 workers)
Job Category Number of
Total Labor Hours
Number of Total Labor Hours that are Section 3 Workers
% of Aggregate Number of Labor Hours that are Section 3 Workers
% of Total Labor Hours for Section 3
Workers
Number of Section 3 Workers
Professionals
Technicians
Office/Clerical
Trade:
Trade:
Trade:
Trade:
TOTALS: % %
Part II: Subcontracts Awarded
Number of Subcontracts awarded: Number of Section 3 Businesses Receiving Contracts:
Name of Qualified Business Concern Construction Contract Amount
Total Dollar Amount of Subcontracts awarded to Section 3 qualified Business Concerns: $
Dollar Amount of All Subcontracts: $
Percentage of the total dollar amount awarded to qualified Business Concerns: %
Part III: Summary of the efforts that were made to generate economic opportunities
Trained and/or Employed _____ low-income individuals equal to _____ (%) of the aggregate labor hours. (Attach Resident Certifications)
Awarded a Subcontract to _____ qualified Business Concerns equal to _____ (%) of the contract amount. (Attach Business Certifications)
___ Attempted to recruit low-income individuals through:
___ Held job fairs
___ Conducted on-the-job training
___ Outreach efforts to public housing residents
___ Participated in a HUD program or other program which promotes the training or employment of low-income individuals
___ Participated in a HUD program or other program which promotes the award of contracts to Section 3 Qualified Business Concerns
___ Contacted agencies administering HUD Youth-Build programs. (Attach list)
___ Maintained a file of eligible, qualified low-income Residents and qualified Business Concerns for future employment.
OTHER - _____________________________________________________________________ (Attach supporting documentation)
| Required Federal Contract Terms and Conditions.pdf |
| Conflict of Interest: In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA - 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR... |
| Federal Labor Standards Provisions |
| Applicability |
| Section 3 Clause |
| Section 3 Bid Evaluation and Contract Award Criteria |
| REASONABLE BID - Zone of Consideration |
| If the Lowest Bid is |
| The “X” FACTOR |
| is the Lesser than |
| Federal Equal Employment Opportunity / Affirmative Action Requirements |
| Contracting With Small Business, Minority Firms, |
| Women’s Business Enterprise, and Labor Surplus Area Firms |
| Compliance with Clean Air and Water Acts |
| Non-Collusion Affidavit |
| Worker’s Compensation Certification |
| Federal Lobbyist Certification |
| Non-Segregated Facilities Certification |
| Past Performance Certification |
| Notice of Equal Employment Opportunity |
| Prime Contractor’s List of Proposed Subcontractors |
| Section 3 Business Certification Form |
| Notice of Section 3 Commitment |
| Job Classification |
| Section 3 Economic Opportunity Plan |
| Program Codes |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Economic Opportunity Report |
| Federal Wage Decision |
| FORM - Section 3 Resident Certification Forms.pdf |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Ventura County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in San Diego |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Imperial County / El Centro |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Kern County / Bakersfield |
| Must Be Completed by Employer |
| Blank Page |
| FWD.pdf |
| Conflict of Interest: In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA - 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR... |
| Federal Labor Standards Provisions |
| Applicability |
| Section 3 Clause |
| Section 3 Bid Evaluation and Contract Award Criteria |
| REASONABLE BID - Zone of Consideration |
| If the Lowest Bid is |
| The “X” FACTOR |
| is the Lesser than |
| Federal Equal Employment Opportunity / Affirmative Action Requirements |
| Contracting With Small Business, Minority Firms, |
| Women’s Business Enterprise, and Labor Surplus Area Firms |
| Compliance with Clean Air and Water Acts |
| Non-Collusion Affidavit |
| Worker’s Compensation Certification |
| Federal Lobbyist Certification |
| Non-Segregated Facilities Certification |
| Past Performance Certification |
| Notice of Equal Employment Opportunity |
| Prime Contractor’s List of Proposed Subcontractors |
| Section 3 Business Certification Form |
| Notice of Section 3 Commitment |
| Job Classification |
| Section 3 Economic Opportunity Plan |
| Program Codes |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Economic Opportunity Report |
| Federal Wage Decision |
| FORM - Section 3 Resident Certification Forms.pdf |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Ventura County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in San Diego |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Imperial County / El Centro |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Kern County / Bakersfield |
| Must Be Completed by Employer |
Blank Page
| Required Federal Bid Submission Forms.pdf |
| Conflict of Interest: In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA - 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR... |
| Federal Labor Standards Provisions |
| Applicability |
| Section 3 Clause |
| Section 3 Bid Evaluation and Contract Award Criteria |
| REASONABLE BID - Zone of Consideration |
| If the Lowest Bid is |
| The “X” FACTOR |
| is the Lesser than |
| Federal Equal Employment Opportunity / Affirmative Action Requirements |
| Contracting With Small Business, Minority Firms, |
| Women’s Business Enterprise, and Labor Surplus Area Firms |
| Compliance with Clean Air and Water Acts |
| Non-Collusion Affidavit |
| Worker’s Compensation Certification |
| Federal Lobbyist Certification |
| Non-Segregated Facilities Certification |
| Past Performance Certification |
| Notice of Equal Employment Opportunity |
| Prime Contractor’s List of Proposed Subcontractors |
| Section 3 Business Certification Form |
| Notice of Section 3 Commitment |
| Job Classification |
| Section 3 Economic Opportunity Plan |
| Program Codes |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Economic Opportunity Report |
| Federal Wage Decision |
| FORM - Section 3 Resident Certification Forms.pdf |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Ventura County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in San Diego |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Imperial County / El Centro |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Kern County / Bakersfield |
| Must Be Completed by Employer |
Blank Page
| Section 3 Federal Requirements.pdf |
| Section 3 Responsive Forms.pdf |
| Conflict of Interest: In the procurement of supplies, equipment, construction, and services by sub-recipients, the conflict of interest provisions in (State LCA - 24 CFR 85.36 and Non-Profit Organizations – 24 CFR 84.4), OMB Circular A-110, and 24 CFR... |
| Federal Labor Standards Provisions |
| Applicability |
| Section 3 Clause |
| Section 3 Bid Evaluation and Contract Award Criteria |
| REASONABLE BID - Zone of Consideration |
| If the Lowest Bid is |
| The “X” FACTOR |
| is the Lesser than |
| Federal Equal Employment Opportunity / Affirmative Action Requirements |
| Contracting With Small Business, Minority Firms, |
| Women’s Business Enterprise, and Labor Surplus Area Firms |
| Compliance with Clean Air and Water Acts |
| Non-Collusion Affidavit |
| Worker’s Compensation Certification |
| Federal Lobbyist Certification |
| Non-Segregated Facilities Certification |
| Past Performance Certification |
| Notice of Equal Employment Opportunity |
| Prime Contractor’s List of Proposed Subcontractors |
| Section 3 Business Certification Form |
| Notice of Section 3 Commitment |
| Job Classification |
| Section 3 Economic Opportunity Plan |
| Program Codes |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Economic Opportunity Report |
| Federal Wage Decision |
| FORM - Section 3 Resident Certification Forms.pdf |
| Section 3 Resident Certification |
| Employees Residing in Orange County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Riverside & San Bernardino Counties |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Los Angeles County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Ventura County |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in San Diego |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Imperial County / El Centro |
| Must Be Completed by Employer |
| Section 3 Resident Certification |
| Employees Residing in Kern County / Bakersfield |
| Must Be Completed by Employer |
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File details come from the government source that posted it. Updated .