Section_3_Contract_Compliance_Package_-_2025.pdf

-SHRA CONTRACT COMPLIANCE PACKAGE-

SACRAMENTO HOUSING AND REDEVELOPMENT AUTHORITY

SECTION 3 CONTRACT COMPLIANCE PACKAGE

1 INTRODUCTION

This document provides the necessary information, forms, and procedures for Contractors and Subcontractors of the Sacramento Housing and Redevelopment Authority (“SHRA”) to comply with Section 3 of the Housing and Urban Development Act of 1968 (“Act”). On November 30, 2020, HUD implemented a Final Section 3 Rule (“Final Rule”) for all recipients. The Final Rule is found at 24 CFR Part 75 and replaced the previous rule found at 24 CFR Part 135. Please take note that the Final Rule is significantly different from the previous rule.

Every contractor must ensure this package is included in their applicable contracts and sub-contracts through all tiers. Every sub-contractor must include this package in their lower-tiered sub-contracts.

This new rule exempts all material and supply only agreements. The rule applies to all service-related contracts/agreements despite the dollar amount or project duration. Certain professional services are also exempt, such as CPA’s, Attorneys, Engineers, and Architects.

2 TABLE OF CONTENTS

1 INTRODUCTION

3 SECTION 3 BENCHMARKS & SUMMARY

3.1 BENCHMARKS

3.1.1 Twenty-Five (25%) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in a HA’s fiscal year are Section 3 workers; and

3.1.2 Five (5%) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in a HA’s fiscal year are Targeted Section 3 workers

3.2 NOTES

3.2.1 There are no specific hiring or contracting goals under this new rule

3.2.2 There can be no solicitation points awarded for being a Section 3 Business

3.2.3 All persons and/or businesses must be fully qualified to perform the work

3.3 SECTION 3 WORKER CLASSIFICATIONS (PUBLIC HOUSING FINANCIAL ASSISTANCE)

3.3.1 Section 3 Worker - Any low or very low-income persons residing in the Metropolitan area

3.3.2 Targeted Section 3 Worker – Employee of a Section 3 Business, Public Housing Resident, Voucher Holder, and YouthBuild participants

3.4 SECTION 3 WORKER CLASSIFICATIONS (HOUSING & COMMUNITY DEVELOPMENT) . 4

3.4.1 Section 3 Worker - Any low or very low-income persons residing in the Metropolitan area

3.4.2 Targeted Section 3 Worker – Employee of a Section 3 Business, Section 3 Worker residing within the service area of the project (typically 1-mile radius), and YouthBuild participants

3.5 REPORTING REQUIREMENTS

3.5.1 Contractors and Subcontractors (all tiers) will provide these three (3) data sets to the Section 3 Coordinator by the 15th of the following month after the hours have been worked by every person that worked directly on the contract (“Attachment A”)

3.6 SECTION 3 BUSINESS QUALIFICATIONS

3.6.1 It is at least 51 percent owned by low- or very low-income persons; with businesses at least 6 months old

3.6.2 Over 75 percent of the labor hours performed for the business are performed by low- or very low-income persons; or (Based on the prior 90 days of full business payrolls)

3.6.3 It is a business at least 51 percent owned by current public housing residents or residents who currently live in Section 8-assisted housing, with businesses at least 6 months old

4 SHRA MONTHLY REPORTING INSTRUCTIONS

4.1 STEP ONE: COMPLETE SECTION 3 REPORTING FORM (“ATTACHMENT A”)

4.1.1 Enter the name of the project you are working on and your company name in the appropriate boxes in the form

4.2 STEP TWO: ENTER SECTION 3 BUSINESS STATUS (“ATTACHMENT A”)

4.2.1 Select your Section 3 Business Status from the appropriate check boxes

4.3 STEP THREE: ENTER HOURS WORKED (“ATTACHMENT A”)

4.3.1 For each month worked on the project, report the total number of hours worked on the project in Row 12 of the form

4.3.2 Utilizing the current Section 3 income limit for the project (found in Row 6), enter the names of any Section 3 Workers in the appropriate boxes in Column A underneath the Total Hours Worked cell

4.3.3 Please keep in mind that you are required to provide additional supporting documentation upon request to support your selections

4.4 STEP FOUR: CERTIFY (“ATTACHMENT A”)

4.4.1 In Row 24 (or lower if there are additional Section 3 Workers requiring more rows), enter the name of the authorized signatory submitting the form. The signatory is certifying under penalty of fraud that the information on the form is true and accurate to the best of their knowledge. Fill in the Date field in Row 24 (or lower) based on the date of completion

4.5 STEP FIVE: SUBMIT (“ATTACHMENT A”)

4.5.1 Submit this report monthly, no later than the 10th of each month for the month prior. Reports should be submitted to:

4.6 STEP SIX: ADDITIONAL REQUESTS

4.6.1 Contractors and subcontractors (all tiers) must comply with all additional information requests, including detailed employee certification forms (“Attachment C” or “Attachment D”) as well as Section 3 Business Certification (“Attachment D”) and any other supporting documentation required by SHRA

4.6.2 As needed, contractors and subcontractors (all tiers) should utilize the SHRA Employment Referral Request Form (“Attachment I”) to identify prospective Section 3 workers and Targeted Section 3 Workers.

This request form should be submitted to:

5 QUALITATIVE EFFORTS

5.1 QUALITATIVE EFFORTS REPORTING

5.1.1 Qualitative Efforts are required to be reported to SHRA by the General Contractor (“GC”) for any project that fails to meet the Section 3 Benchmarks listed in Section 3.1 of this document. Qualitative Efforts must be reported using the Qualitative Efforts Report (“Attachment G”). Examples of Qualitative Efforts include but are not limited to:

6 SECTION 3 CONTRACT INCLUSIONS

6.1 SECTION 3 CLAUSE (“ATTACHMENT F”)

6.1.1 The Section 3 Clause (“Attachment F”) document must be included in all Contracts and Subcontracts (all tiers) for Section 3 applicable work. All material Supply Contracts and some Professional Services Contracts are exempt from Section 3

6.2 SECTION 3 COMPLIANCE ACKNOWLEDGMENT (“ATTACHMENT H”)

6.2.1 Each contractor and subcontractor (all tiers) must complete the Section 3 Compliance Acknowledgment (“Attachment H”) at the time of contract execution

6.3 SECTION 3 BROCHURE (“ATTACHMENT B”)

6.3.1 The Section 3 Brochure (“Attachment B”) should be included in all Contracts and Subcontracts (all tiers) as an additional resource providing information about Section 3

7 ATTACHMENTS

7.1 ATTACHMENT A – SECTION 3 REPORTING FORM

7.2 ATTACHMENT B – SECTION 3 BROCHURE

7.3 ATTACHMENT C – SECTION 3 EMPLOYER CERTIFICATION – HOUSING AND

COMMUNITY DEVELOPMENT

7.4 ATTACHMENT D – SECTION 3 EMPLOYER CERTIFICATION – PUBLIC HOUSING

FINANCIAL ASSISTANCE

7.5 ATTACHMENT E – SECTION 3 BUSINESS CERTIFICATION

7.6 ATTACHMENT F – SECTION 3 CONTRACT CLAUSES

7.7 ATTACHMENT G – QUALITATIVE EFFORTS REPORT

7.8 ATTACHMENT H – SECTION 3 COMPLIANCE ACKNOWLEDGMENT

7.9 ATTACHMENT I – SHRA EMPLOYMENT REFERRAL REQUEST

3 SECTION 3 BENCHMARKS & SUMMARY

3.1 BENCHMARKS

3.1.1 Twenty-Five (25%) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in a HA’s fiscal year are Section 3 workers; and

3.1.2 Five (5%) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in a HA’s fiscal year are Targeted Section 3 workers.

3.2 NOTES

3.2.1 There are no specific hiring or contracting goals under this new rule.

3.2.2 There can be no solicitation points awarded for being a Section 3 Business.

3.2.3 All persons and/or businesses must be fully qualified to perform the work.

3.3 SECTION 3 WORKER CLASSIFICATIONS (PUBLIC HOUSING FINANCIAL ASSISTANCE)

3.3.1 Section 3 Worker - Any low or very low-income persons residing in the Metropolitan area.

3.3.2 Targeted Section 3 Worker – Employee of a Section 3 Business, Public Housing Resident, Voucher Holder, and YouthBuild participants.

3.4 SECTION 3 WORKER CLASSIFICATIONS (HOUSING & COMMUNITY DEVELOPMENT)

3.4.1 Section 3 Worker - Any low or very low-income persons residing in the Metropolitan area.

3.4.2 Targeted Section 3 Worker – Employee of a Section 3 Business, Section 3 Worker residing within the service area of the project (typically 1-mile radius), and YouthBuild participants.

3.5 REPORTING REQUIREMENTS

3.5.1 Contractors and Subcontractors (all tiers) will provide these three (3) data sets to the

Section 3 Coordinator by the 15th of the following month after the hours have been worked by every person that worked directly on the contract (“Attachment A”).

3.5.1.1 Total Hours Worked by all workers;

3.5.1.2 Total Hours Worked by Section 3 Workers (Individual Certification Required); and

3.5.1.3 Total Hours worked by Targeted Section 3 Workers (Individual Certification Required)

3.6 SECTION 3 BUSINESS QUALIFICATIONS

3.6.1 It is at least 51 percent owned by low- or very low-income persons; with businesses at least 6 months old.

3.6.2 Over 75 percent of the labor hours performed for the business are performed by low-or very low-income persons; or (Based on the prior 90 days of full business payrolls).

3.6.3 It is a business at least 51 percent owned by current public housing residents or residents who currently live in Section 8-assisted housing, with businesses at least 6 months old.

4 SHRA MONTHLY REPORTING INSTRUCTIONS

4.1 STEP ONE: COMPLETE SECTION 3 REPORTING FORM (“ATTACHMENT A”)

4.1.1 Enter the name of the project you are working on and your company name in the appropriate boxes in the form.

4.2 STEP TWO: ENTER SECTION 3 BUSINESS STATUS (“ATTACHMENT A”)

4.2.1 Select your Section 3 Business Status from the appropriate check boxes.

4.3 STEP THREE: ENTER HOURS WORKED (“ATTACHMENT A”)

4.3.1 For each month worked on the project, report the total number of hours worked on the project in Row 12 of the form.

4.3.2 Utilizing the current Section 3 income limit for the project (found in Row 6), enter the names of any Section 3 Workers in the appropriate boxes in Column A underneath the Total Hours Worked cell.

4.3.2.1 List each Section 3 Worker’s total hours worked per month in Columns C-N.

4.3.2.2 In Column B, mark ‘Yes’ or ‘No’ to the Targeted Section 3 Worker status, defined in

Row 3.

4.3.3 Please keep in mind that you are required to provide additional supporting documentation upon request to support your selections.

4.4 STEP FOUR: CERTIFY (“ATTACHMENT A”)

4.4.1 In Row 24 (or lower if there are additional Section 3 Workers requiring more rows), enter the name of the authorized signatory submitting the form. The signatory is certifying under penalty of fraud that the information on the form is true and accurate to the best of their knowledge. Fill in the Date field in Row 24 (or lower) based on the date of completion.

4.5 STEP FIVE: SUBMIT (“ATTACHMENT A”)

4.5.1 Submit this report monthly, no later than the 10th of each month for the month prior.

Reports should be submitted to:

COMPLIANCE@MOTIVATION-INC.COM

4.6 STEP SIX: ADDITIONAL REQUESTS

4.6.1 Contractors and subcontractors (all tiers) must comply with all additional information requests, including detailed employee certification forms (“Attachment C” or “Attachment D”) as well as Section 3 Business Certification (“Attachment D”) and any other supporting documentation required by SHRA.

4.6.2 As needed, contractors and subcontractors (all tiers) should utilize the SHRA Employment Referral Request Form (“Attachment I”) to identify prospective Section 3 workers and Targeted Section 3 Workers. This request form should be submitted to:

SECTION3@SHRA.ORG

5 QUALITATIVE EFFORTS

5.1 QUALITATIVE EFFORTS REPORTING

5.1.1 Qualitative Efforts are required to be reported to SHRA by the General Contractor

(“GC”) for any project that fails to meet the Section 3 Benchmarks listed in Section 3.1 of this document. Qualitative Efforts must be reported using the Qualitative Efforts Report (“Attachment G”). Examples of Qualitative Efforts include but are not limited to:

• Advertise in local/neighborhood newspapers/publications.

• Post opportunity flyers/notices in the common areas of SHRA public housing communities.

• Complete and submit SHRA Employment Referral Request Form for any employment opportunities.

• Contact and post flyers/notices at the Sacramento County Business Information

Centers, local and ethnic Chambers of Commerce, SBA, etc.

• At the job site, post the job opportunity notice and the Section 3 poster where the public may reasonably view it.

• Contact local job training centers, i.e. SETA or labor organizations.

• Refer low- and very low-income individuals to their local American Job Center for employment and training supportive services.

mailto:COMPLIANCE@MOTIVATION-INC.COM mailto:SECTION3@SHRA.ORG

6 SECTION 3 CONTRACT INCLUSIONS

6.1 SECTION 3 CLAUSE (“ATTACHMENT F”)

6.1.1 The Section 3 Clause (“Attachment F”) document must be included in all Contracts and

Subcontracts (all tiers) for Section 3 applicable work. All material Supply Contracts and some Professional Services Contracts are exempt from Section 3.

6.2 SECTION 3 COMPLIANCE ACKNOWLEDGMENT (“ATTACHMENT H”)

6.2.1 Each contractor and subcontractor (all tiers) must complete the Section 3 Compliance

Acknowledgment (“Attachment H”) at the time of contract execution.

6.3 SECTION 3 BROCHURE (“ATTACHMENT B”)

6.3.1 The Section 3 Brochure (“Attachment B”) should be included in all Contracts and

Subcontracts (all tiers) as an additional resource providing information about Section 3.

7 ATTACHMENTS

7.1 ATTACHMENT A – SECTION 3 REPORTING FORM

7.2 ATTACHMENT B – SECTION 3 BROCHURE

7.3 ATTACHMENT C – SECTION 3 EMPLOYER CERTIFICATION – HOUSING AND

COMMUNITY DEVELOPMENT

7.4 ATTACHMENT D – SECTION 3 EMPLOYER CERTIFICATION – PUBLIC HOUSING

FINANCIAL ASSISTANCE

7.5 ATTACHMENT E – SECTION 3 BUSINESS CERTIFICATION

7.6 ATTACHMENT F – SECTION 3 CONTRACT CLAUSES

7.7 ATTACHMENT G – QUALITATIVE EFFORTS REPORT

7.8 ATTACHMENT H – SECTION 3 COMPLIANCE ACKNOWLEDGMENT

7.9 ATTACHMENT I – SHRA EMPLOYMENT REFERRAL REQUEST

TARGETED SECTION 3

WORKER? (SEE ROW 7 ABOVE)

Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24

Total Hours Worked Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here Insert Section 3 worker name here

Date:

Revised 5/4/24

Employer Section 3 Reporting Form

Check the box appropriate for your business.

[2] The employer certifies that the workers' base annualized income (not to include overtime, per diem, tips, commission, or bonuses) is below HUD's income limit of $72,050 (under $34.64 per hour) when based on an employer's calculation of what the workers' wage rate would translate to if annualized on a full-time basis. To calculate: Annualized Income = (hourly base rate x 2080). Section 3 Worker 24 CFR Part 75.31 (b)(1)(iv).

Instructions:

[1] List total hours worked each month on the Project, and then break down individual hours each month for any work performed by a Section 3 worker.

[3] Employer certification whether the employee is employed by a Section 3 Business, is an Active YouthBuild participant, or is a Section 3 Worker living within 1 mile of the project site. Targeted Worker 24 CFR Part 75.31 (2)(ii).

Name of Authorized Officer:

I affirm that the information above is true, complete, and correct to the best of my knowledge and belief. I agree to provide documents verifying this information if requested. I understand that businesses who misrepresent themselves as Section 3 Business Concerns, and/or misrepresent Section 3 Worker status, and report false information may have their contracts terminated as default and/or may be barred from ongoing and future considerations for contracting opportunities.

Project Name: (Enter Project Name) Company Name: (Enter Company Name)

YES, we are a Section 3 Business NO, we are NOT a Section 3 Business

The employer certifies that the Section 3 employee(s) listed in column A meet(s) the Section 3 Worker definition 24 CFR Part 75.75.

ATTACHMENT A

SECTION 3

for Workers and Businesses

Learn about employment, training and contracting opportunities that can be available to you under Section 3.

What Happens if the Section 3 Goals

Are Not Met?

Recipients must report qualitative nature of Section 3 compliance efforts and the efforts of its contractors and subcontractors.

How Can I Find Section 3 Opportunities in My Area?

Contact your local and state government and public housing authority to learn more about employment, training and contracting opportunities that may be available to you in your community.

How Can I Learn More About Section 3?

Visit the following websites:

http://www.hud.gov/section3 http://www.hudexchange.info�programs/section-3/

Want to learn more about YouthBuild?

http://www.dol.gov/agencies/eta/youth/youthbuild

What Projects or Contracts Does

Section 3 Apply to?

Housing and Community Development Financial

Assistance

Section 3 applies to housing construction, housing rehab and public infrastructure projects that receive more than $200,000 in HUD assistance. Section 3 also applies to projects that include Lead Hazard Control and

Healthy Homes assistance that exceeds $100,000.

Public Housing Financial Assistance

Section 3 applies to any amount of assistance for development, operations and management, mixed-finance development projects, and in some cases, Rental Assistance Demonstration (RAD) and Choice

Neighborhoods projects.

What Are the Goals of Section 3?

Section 3 has goals that recipients, subrecipients, contractors and subcontractors must meet. The goals are as follows:

Housing and Community Development Financial

Assistance

25% or more of the total number of labor hours worked by all workers on a Section 3 project are

Section 3 workers and 5% or more of the total number of labor hours worked by all workers on a

Section 3 project are Targeted Section 3 workers.

Public Housing Financial Assistance

25% or more of the total number of labor hours worked by all workers in a PHA’s fiscal year are

Section 3 workers and 5% or more of the total number of labor hours worked by all workers in a

PHA’s fiscal year are Targeted Section 3 workers.

ATTACHMENT B

All Workers

All Section 3 Workers

Targeted Section 3 Workers

Who Is Responsible for Providing

Access to Economic Opportunities?

Recipients and subrecipients of HUD assistance

Contractors and subcontractors working on certain

HUD-assisted projects or contracts

How Can Contractors Help PHAs and

Grantees Meet the Section 3 Goals?

Contractors can help PHAs and grantees meet the

Section 3 goals by being a Section 3 business or employing Section 3 workers. Some grantees or PHAs may offer incentives to businesses that can demonstrate how they will meet the Section 3 goals.

What Is a Section 3 Worker?

A Section 3 Worker is any worker who currently fits, or when hired within the past five years fit, at least one of the following categories as documented:

Person who is low-income

Employed by a Section 3 business concern

YouthBuild participant

What Is Section 3 and Why Does It

Matter?

Every year the Department of Housing and Urban

Development (HUD) invests billions of federal dollars into distressed communities across the country for projects that provide access to safe and affordable housing and improve public infrastructure.

These funds are passed down to public housing agencies, local and state governments or other recipients through grants or financial assistance.

The financial assistance can be used to maintain and build affordable housing and improve public infrastructure in your community.

Employment, training and contracting opportunities that result from the covered projects or contracts must be directed to persons who are low-income (Section 3 workers) and businesses that are owned by or employ persons who are low-income (Section 3 businesses) to help build economic wealth.

Best efforts should be made to direct economic opportunities to persons and businesses in the order of priority outlined in the final rule requirements.

What Is a Targeted Section 3 Worker?

A Targeted Section 3 Worker is a Section 3 worker who is employed by a Section 3 business concern or is a worker that currently fits or when hired fit at least one of the following categories as documented within the past five years:

Housing and Community Development Financial Assistance

Lives within the neighborhood of the project YouthBuild participant

Public Housing Financial Assistance Resident of public housing or Section 8-assisted housing Resident of other public housing projects or Section 8-assisted housing managed by the PHA that is providing the assistance YouthBuild participant

What Is a Section 3 Business Concern?

A business that meets at least one of the following categories, within the last six-month period:

At least 51% owned and controlled by persons who are low-income At least 51% owned and controlled by current public housing residents or residents who currently live in Section 8 assisted housing Over 75% of the labor hours performed for the business over the prior three-month period were performed by Section 3 workers

ATTACHMENT C

Section 3 Housing and Community Development Employer Certification Form

U.S. Department of Housing and Urban Development

Office of Field Policy and Management

HUD FORM 4736A

OMB Approval Number 2501-0041

(Exp. 04/30/2025)

(In compliance with Section 3 of the HUD Act of 1968 and 24 CFR Part 75)

The purpose of this form is to comply with Section 3 of the HUD Act of 1968 employer certification requirements listed in 24 CFR § 75.31. To qualify as a Section 3 worker, the United States legal resident’s annual income must not exceed the HUD income limits for the year before the worker was hired, or the individual’s current income annualized on a full-time basis for the year must be below the HUD income limit.

Additionally, an individual can qualify as a Section 3 worker and Targeted Section 3 worker, if an employee of a Section 3 Business Concern. To qualify as a Targeted Section 3 worker, an employer can confirm that the employee lives within the service area or neighborhood of the project.

Please provide the following information about the business/employer:

Name of Business: __________________________________________________________________________________

Street Address City State Zip

Phone #: ________________________ Email: _________________________________________________

Please Provide the following information about the worker/employee:

Printed Name of Worker:

Street Address (Not a PO Box) Apt# City State Zip

Phone #: Email:

ATTACHMENT C

Please indicate which of the following is true for the worker listed above: (Select all that apply)

____ Worker’s income from your employment is below the income limit based on a calculation of what the worker’s wage rate would translate to if annualized on a full-time basis*

____ Worker is employed by a Section 3 Business Concern (Select if your business qualifies as a Section 3 Business Concern)

____ Worker’s residence is within the service area or neighborhood of the project

Income limit

$72,050

*Currently or at the time of hire if hired within the past 5 years.

I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct and certifies that the worker identified above meets the definition of a Section 3 worker. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012; 31 U.S.C. §3729, 3802)

Signature Date

ATTACHMENT D

Section 3 Employer Certification Form-Public Housing

U.S. Department of Housing and Urban Development

Office of Field Policy and Management

HUD FORM 4736B

OMB Approval Number 2501-0041

(Exp. 04/30/2025)

(In compliance with Section 3 of the HUD Act of 1968 and 24 CFR Part 75)

The purpose of this form is to comply with Section 3 of the HUD Act of 1968 employer certification requirements listed in 24 CFR § 75.31. This form is to be filled out by a representative of an employer of a Section 3 worker.

Please provide the following information about the business/employer:

Name of Business: __________________________________________________________________________________

Street Address City State Zip

Phone #: ________________________ Email: _________________________________________________

Please provide the following information about the worker/employee:

Printed Name of Worker:

Street Address (Not a PO Box) Apt# City State Zip

Phone #: Email:

Please indicate which of the following is true for the worker listed above: (Select all that apply)

ATTACHMENT D

____ Worker’s income from your employment is below the income limit based on a calculation of what the worker’s wage rate would translate to if annualized on a full-time basis*

____ Worker is employed by a Section 3 Business Concern (Select if your business qualifies as a Section 3 Business Concern)

Income limit

$72,050

*Currently or at the time of hire if hired within the past 5 years

I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct and certifies that the worker identified above meets the definition of a Section 3 worker. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012; 31 U.S.C. §3729, 3802)

Signature Date

ATTACHMENT E

Section 3 Business Concern Certification 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 (Refer to income guidelines on page 2).

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

☐ Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers (Refer to definition on page 2).

(frontside)

ATTACHMENT E

Business Concern Affirmation I affirm that the above statements (on the frontside 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 [insert name of recipient/grantee] 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.

SACRAMENTO HOUSING AND REDEVELOPMENT AUTHORITY

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 City of Sacramento

FY 20 25

Income Limits Category

FY 20 25

Income Limits

Low Income Limits (80%)

$72,050

See https://www.huduser.gov/portal/datasets/il.html for most recent income limits.

https://www.ecfr.gov/cgi-bin/text-idx?SID=569b66a547528bf6c5c47f75b825cb94&mc=true&node=pt24.1.75&rgn=div5#se24.1.75_15

SECTION 3 CLAUSE

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

B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 75 regulations.

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

D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 75, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in willful violation of the regulations in 24 CFR part 75.

E. The contractor will certify that pursuant to 24 CFR part 75, training and employment opportunities will, to the greatest extent feasible, be provided to low- and very low-income individuals. HUD has created a benchmark for safe harbor, requiring that 25% of the total labor hours on a covered project be performed by Section 3 workers. Inclusive of that 25% benchmark, 5% of the total labor hours on a covered project be performed by Targeted Section 3 workers.

F. Noncompliance with HUD’s regulations in 24 CFR part 75 may result in a negative impact to your contract performance evaluation, which can affect your ability to win future contract opportunities with SHRA based on past-performance results.

With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).

ATTACHMENT F

Federal Section 3

FORM 3-DOCUMENTATIO N OF QUALITATIVE EFFORTS

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 quarterly or final compliance reports that indicate numeric goals were not met. Please fill out this form completely. Attach additional pages if needed.

Project Name Contract Execution Date Construction

Start Date 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.

• If not currently hiring and later in the project period end up needing to hire please explain the intended method of filling the position/positions.

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.

• 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.

Federal Section 3

FORM 3-DOCUMENTATION OF QUALITATIVE EFFORTS

(Continued)

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. Signage must be large enough to be visible from the street. 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

• Engaged in outreach efforts to generate job applicants who are Targeted Section 3 Workers.

• Provided technical assistance to help Section 3 Workers compete for jobs (e.g. resume assistance, coaching, etc.).

• Provided training or apprenticeship opportunities.

• Directed Section 3 Workers to obtain financial literacy training and/or coaching.

• Assisted or connected Section 3 Workers with assistance in seeking employment by helping them prepare for interviews, connecting residents to job placement services, or pointed them towards job fairs.

• Provided or referred Section 3 Workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, childcare).

• Engaged in outreach efforts to identify and secure bids from Section 3 Business Concerns.

• Hosted job fairs.

• Divided contracts into smaller jobs to facilitate participation by Section 3 Business Concerns.

• Provided technical assistance to help Section 3 Business Concerns understand and bid on contracts.

• Provided application assistance for attendance at a community college, a four-year educational institution, or vocational/technical training.

• Provided bonding assistance, guarantees, or other efforts to support viable bids from Section 3 Business Concerns.

• Contacted business assistance agencies, minority contractors’ associations, and community organizations to inform them of contracting opportunities and request their assistance in identifying Section 3 Business Concerns.

• Provided written notice to all known Section 3 Business Concerns of the contracting opportunities. The notice should be in sufficient time to allow Section 3 Business Concerns to respond to the bid invitation or request for proposal.

• Used the services and assistance of the U.S. Small Business Administration and the Minority Business Development

Agency of the U.S. Department of Commerce

• Promoted the use of the Section 3 Business Registry and HUD Opportunity Portal

(https://hudapps.hud.gov/OpportunityPortal/).

https://www.mbda.gov/ https://hudapps.hud.gov/OpportunityPortal/

ATTACHMENT H

Sacramento Housing and Redevelopment Agency Section 3 Compliance Acknowledgement

Company Name: ______________________________________________________________

Contract or Project Name: ______________________________________________________

Trade Work/Classification: ______________________________________________________

I hereby certify to the US Department of Housing and Urban Development (HUD) that I have read the information in the SHRA Contract Compliance Package and all Attachments and agree to follow the requirements for complying with the order of prioritization in 75.9 and reporting of all labor hours associated with my contract as required. I further understand that failure to comply with these requirements will cause my payments to be held and not processed or not released until I come into full compliance with this policy.

Monthly, I will be required to provide these data points for all contract staff working directly on the contract:

• Total Hours Worked by all Employees (Non-Section 3 & Section 3 employees)

• Total Hours Worked by All Section 3 Workers

• Total Hours Worked by All Targeted Section 3 Workers

Signature: __________________________________________Name: _______________________________

Title: _______________________________________________Date: ________________________________

SHRA EMPLOYMENT REFERRAL REQUEST FORM

INSTRUCTIONS: Complete all applicable fields in this form. Any attachments/web links submitted in lieu of this form must include the information requested from this form in its entirety.

Company Name: Contract No(s).

Date Posted: Willing to Train:

Position Start Date: Position End Date:

Job Title:

Contract #: Job Category/Field:

Location: Travel Required:

Neighborhood(s): Number of Positions Available:

Position Type: Fringe Benefits:

Compensation:

External posting

URL:

Job Description

ROLE AND RESPONSIBILITIES

QUALIFICATIONS AND EDUCATION REQUIREMENTS

PREFERRED SKILLS

ADDITIONAL NOTES

ATTACHMENT I