LABOR STANDARDS

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Section 3
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What is Section 3?

• Provision of the Housing and Urban Development
  Act of 1968 - 24 CFR Part 135
• Helps foster local economic development,
  neighborhood economic improvement, and individual
  self-sufficiency
• Requires recipients of certain HUD financial
  assistance to provide job training, employment
  and contracting opportunities for low or very low
  income residents in connection with projects and
  activities in their neighborhood.

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Applicability

• 200K Threshold for Recipient Grant Award
• 100K Threshold for Construction Contracts
• Housing rehabilitation
• (including lead-based paint abatement)
• Housing construction
• Other public construction

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Who are Section 3 Residents?

• Residents of the non-metro county where the
  HUD-assisted project is located and who have a
  household income that falls below HUDs income
  limits.
• Public housing resident
• Section 8 resident
• Determining Income Levels
• Section 3 low income is defined as 80 or below
  the median income of that area (CDBG low to
  moderate income standard).
• Section 3 very low income is defined as 50 or
  below the median income of that area (CDBG low
  income standard).

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What is a Section 3 business?

• 51 or more owned by Section 3 residents
• Section 3 residents make up 30 of its full-time
  permanent staff
• Provide evidence of a commitment to subcontract
  more than 25 of the dollar award of all
  subcontracts to businesses that qualify as a
  Section 3 business

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Eligibility for Employment and Contracting

• Section 3 resident must meet the qualifications
  of the position to be filled.
• Section 3 business must have the ability and
  capacity to perform successfully under the terms
  and conditions of the proposed contract.

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Recipient Responsibilities

• Notify Section 3 residents and businesses
• Newspaper Ads
• Post announcements at Public Housing Authority
  office
• Facilitate training and employment of residents
• Partnership with Department of Labor
• Partnership with Local Technical College
• Award contracts to Section 3 businesses
• Assist with compliance among contractors
• Document compliance

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Examples of Economic Opportunities

• HVAC
• Painting
• Pipe Installation
• Plastering
• Plumbing
• Roofing

• Bricklaying
• Carpentry
• Carpet Installation
• Cement/Masonry
• Demolition
• Drywall
• Electrical

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Recipient Responsibilities (cont)

• Submit HUD Form 60002 to DCA semi-annually (June
  30th and December 31st)
• Additional Section 3 information can be obtained
  at www.hud.gov

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Contact Information

• Pam Truitt, Grants Consultant
• Phone [phone]
• E-Mail pam.truitt_at_dca.ga.gov
• Rick Huber, Compliance Manager
• Phone [phone]
• E-Mail rick.huber_at_dca.ga.gov
• Crystal Shelly, Grants Consultant
• Phone [phone]
• E-Mail crystal.shelly_at_dca.ga.gov