Section 3: Economic Opportunities
Staci Gilliam, Director - Section 3
DOL YouthBuild Federal Learning Exchange
April 9, 2013
U.S. Department of Housing and Urban Development
Office of Fair Housing and Equal Opportunity
Topics to be Covered
•
•
•
•
•
•
Basic Requirements
YouthBuild as a Priority Category
Recipient Responsibilities
Section 3 Covered Program Funding
Resources & Trends
HUD/DOL Collaboration
2
The Basics
The purpose of Section 3 is to ensure that
employment,(training and contracting)
generated by certain HUD financial
assistance shall, (TGEF) …, be directed to
low- and very low-income persons…and to
business concerns which provide economic
opportunities to (those) persons.
§135.1
3
The Basics
• Section 3 regulations do not require hiring
or subcontracting unless it is necessary to
complete the project.
• Numerical Goals:
– 30% of new hires
– 10% of Construction Contracts
– 3% of Non-construction Contracts
4
The Basics - continued
• Applies more broadly to PHAs
• HCDs: construction related activity only
• Applies to HUD financed activity, fully or
partially funded - §135.3(b)
• Thresholds: $200K for HCDs - §135.3(a)(3)
• Section 3 is race and gender-neutral.
5
The Basics - continued
Intended Beneficiaries
• Local low income-persons per HUD defined
household income limits
• Businesses that are owned by or substantially
employ such persons
• A Section 3 resident must meet the qualifications of
the position to be filled - §135.34(c)
• A Section 3 business concern must have the ability
and capacity to perform - §135.34(a)(2)
6
Priority Consideration
• YouthBuild participants are
a priority category for
Section 3 covered training
and employment
opportunities financed with
HUD funding. §135.34(a)
7
Priority Consideration
• YouthBuild programs
are a priority category
for Section 3 covered
contracting opportunities
financed with HUD
funding §135.36(a)
8
Covered HUD Program Funding
Program
Covered Activity
PIH Modernization
Rehabilitation
PIH Operations
Maintenance
HOPE VI
Construction/rehab
Choice Neighborhoods
Construction/rehab
CDBG
Construction/rehab
HOME
Construction/rehab
Disaster Recovery
Construction/rehab
Section 202/811
Construction/rehab
Lead Abatement
Construction/rehab
9
Recipient Responsibilities
• Notify Section 3 residents and businesses
about economic opportunities
• Notify covered contractors
• Facilitate compliance among contractors
• Meet contracting and employment goals
§135.32
10
Win-Win Relationships
YouthBuild
Participants
PHAs, HCDs and
Contractors
Registered
Apprenticeships
Registered Apprenticeship Opportunities for
YouthBuild Graduates on
HUD-Funded Construction Projects
11
HUD/DOL Collaboration
• Joint Agreement to be finalized
• HUD will:
– Emphasize prioritization of engagement
with YouthBuild Programs
– Advise Recipient Agencies to Notify YB
Grantees about contracting opportunities
• DOL will work to increase apprenticeship
placements for YouthBuild Graduates
12
PHAs with 250+ Project Based Units and
CPD Grantees That Receive $1 Million+ in Covered HUD Funding
*1500 Agencies
13
2011 Performance Indicators
All new hires
41,982
Section 3 employees and trainees
16,065
38.3%
Percent Section 3 Employment
Total construction contracts
$ 6,494,215,181
Amount awarded to Section 3 businesses
$
525,395,030
8.1%
Percent Section 3 contracts
3,590
Total Section 3 businesses receiving contracts
Total non-construction contracts
$ 2,809,563,189
Amount awarded to Section 3 businesses
$
Percent Section 3 contracts
Total Section 3 businesses receiving contracts
46,173,620
1.6%
1,602
14
Section 3 Business Registry Pilot
Pilot Program Launched November 2011
- D.C, Detroit, L.A., Miami & New Orleans
• Available to contractors located within
each respective metro area
• Anticipated expansion to Super Storm
Sandy Impact area
• Self certification: www.hud.gov/sec3biz
15
US Department of Housing and Urban Development
Office of Fair Housing and Equal Opportunity
Economic Opportunity Division
Phone: 202.402.5860
[email protected]
www.hud.gov/section3
www.hud.gov/sec3biz
16