Section 3 Annual Report
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1 Section 3 Annual Report 2015 Activities and Accomplishments HOUSING AUTHORITY OF THE CITY OF LOS ANGELES 2015
2 This page is intentionally left blank Section 3 Annual Report
3 Section 3 Annual Report 2015 Activities and Accomplishments We are pleased to present the Housing Authority of the City of Los Angeles (HACLA s) 2015 Section 3 Annual Report. The report was prepared to provide a snapshot of HACLA s efforts to provide employment and economic opportunities to Section 3 Residents and Section 3 Businesses. While HACLA s primary mission is to provide safe and decent affordable housing to low and very-low income individuals in Los Angeles, we continue to recognize the importance of also providing economic and educational opportunities to our residents to help them become selfsufficient and achieve their educational, economic and career goals. One of the avenues we utilize to assist our residents in these efforts is through our innovative Section 3 Program. HACLA adopted its Section 3 Guide and Compliance Plan in 2014 to realize the objectives of Section 3. Since that time, HACLA has engaged in a variety of efforts to realize the intent and spirit of Section 3 in our procurement activities. These efforts include expanding the imposition of Section 3 to non-federally funded contracts, and, when employment is not feasible, working with vendors to develop other economic opportunities for residents such as training and mentoring programs. Section 3 outreach and education to vendors is provided at pre-bid conferences and business events, through the development of supporting materials and communications, ensuring that Section 3 obligations are clearly spelled-out in all solicitations and monitoring contractual compliance with Section 3 commitments. These activities are administered primarily by HACLA s Section 3 Compliance Administrator who is dedicated to ensuring vendors are successful in meeting their Section 3 obligations. What follows is a summary of our efforts and accomplishments in We thank our vendors for their commitments and good faith efforts to provide economic opportunities to our residents and our residents for recognizing and seizing these opportunities. Section 3 Annual Report
4 Table of Contents Section 3: Regulation and HACLA Policy 4 Contract Activity 5 Section 3 Commitments 6 Business Profiles 7-10 Jobs Created 11 Resident Stories Section 3 Business Registry 14 Outreach Activities 15 Resources and Forms 16 Looking Ahead 17 Section 3 Annual Report
5 Section 3: Regulation and HACLA Policy Section 3 is a provision of the Housing and Urban Development Act of 1968 (24 CFR Part 135). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, be directed to low and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very low-income persons HACLA s Section 3 Guide and Compliance Plan (the Plan ) was approved by the HACLA Board in October 2014 to help effectuate Section 3. Among other requirements, the Plan requires HACLA vendors to submit an Economic Opportunity Plan (EOP) with their offers or bids identifying the vendor s commitments to hire and/or training Section 3 Residents. The Plan also permits vendors to contribute to a newly established Section 3 Fund as an option of last resort. Vendor commitments are incorporated into their contracts and monitored for compliance. HACLA has engaged in robust efforts to implement the Plan including: developing a variety of marketing and promotional materials, forms and guides to educate vendors on Section 3 requirements and residents on Section 3 employment and training opportunities; translating resident Section 3 registry forms into Spanish; developing a new Section 3 portal on HACLA s website populated with HACLA s Section 3 resources; featuring Section 3 requirements more prominently in procurement solicitations; and discussing Section 3 requirements at all vendor pre-bid conferences. Section 3 Annual Report
6 Contract Activity A total of ten (10) Section 3 Businesses received contract awards from HACLA in The total amount of contracts awarded to Section 3 Business was in excess of $4.3 million. The breakdown of the contract awards is detailed below. Section 3 Business Services Provided Contract Amount Cal-City Construction Utility Re-piping and Upgrade at RSP $2,445,000 Pristine Windows Window Replacement at MVG $1,677,388 ASAP Tires On-Site Tire and Battery Replacement $75,000 Alameda Medical Group Employment Related Medical Services $50,000 Stacy Medical Group Employment Related Medical Services $50,000 Alfonso Gurrola Floor Coverings Floor repairs $17,800 All City Plumbing Plumbing $2,972 A1 Building and Fence Fence Repairs $1,382 Janco and Winnex Printing $720 Indie Printing Printing $348 Section 3 Annual Report
7 Section 3 Commitments Jobs: HACLA s preferred method of compliance with Section 3 is to provide employment opportunities to Section 3 Residents. A total of forty-nine (49) job commitments were received from nine (9) contracts issued in Trainings: Contractors who are unable to hire are required to provide other economic opportunities to Section 3 Residents. One of the ways they can satisfy their Section 3 obligation is to provide practical training opportunities to Section 3 Residents. A total of sixty-five (65) Section 3 Residents participated in six (6) trainings offered by contractors in Other Economic Opportunities: Other non-employment opportunities provided to residents in 2015 included the following: Internships Career workshops and Mentorships Scholarships Pro bono legal services to residents Job Shadowing College prep assistance Section 3 Fund: Contractors who demonstrate to HACLA s satisfaction that hiring, subcontracting or providing other economic opportunities is not feasible are permitted to contribute to the Section 3 Fund. Section 3 Funds are used to cover resident job training, apprenticeship program and educational support expenses through our WorkSource Center. HACLA received Section 3 Fund commitments of approximately $150,000 from vendors in The actual amount of the contributions is dependent upon contract expenditures (3% of expenditure amount). Note: Section 3 Fund contributions cannot be accepted in lieu of compliance with Section 3. 6 Section 3 Annual Report 2015
8 Business Profiles Construction Services Contractor: Letner Roofing Co. Project Name: Imperial Courts Re- Roofing of 40 Buildings Section 3 Commitment: Letner Roofing Co. hired four HACLA Section 3 Residents and enrolled them in Roofers & Waterproofers JATC apprenticeship program. The apprentices receive a combination of classroom and hands on training to become certified roofers. Contractor: Commercial Paving and Coating Project Name: Pico Gardens Parking Space Construction Section 3 Commitment: While the contract was modest in amount and short term, Commercial Paving and Coating demonstrated its commitment to Section 3 and hired a Section 3 Resident to assist them with this project. This Section 3 Resident received valuable hands on training and experience in the construction industry. Section 3 Annual Report 2015 Contractor: Cal City Construction Inc. Project Name: Rancho San Pedro Utility Upgrade Section 3 Commitment: Cal City and its subcontractors hired five Section 3 Residents to meet their Section 3 obligations and will hire an additional two in In addition, Cal City is a self-certified Section 3 Business. 7
9 Business Profiles Professional Services Contractor: Gartner Inc. Project Name: IT Consulting Services Section 3 Commitment: In an effort to help bring career opportunities to Section 3 Residents, Gartner Inc. conducted two career workshops geared to young adults ages The workshops were intended to provide resources, support and hands on assistance to Section 3 Residents in order to prepare them for careers. Topics included career research, use of social media in a changing world, securing interviews, interview and resume preparation, thank you letters/follow-up, and an overview and guidance on careers in the IT industry. Kevin Harmon, Account Executive, conducted the two day workshops in group settings. Training participants continue to receive one-on-one mentorship and guidance from Harmon who remains in communication with them and provides ongoing advice and career guidance. Contractor: Outside Legal Counsel Project Name: Legal Services Section 3 Commitment: Over a dozen law firms under contract with HACLA have committed to providing Section 3 opportunities to residents in the forms of internships, scholarships, pro-bono legal services, mentorships and contributions to the Section 3 Fund. These commitments are an excellent example of how professional services firms, often located outside of the Los Angeles metropolitan area, can satisfy their Section 3 obligations. Contractor: Cypress Security Project Name: Security services at various HACLA properties, administrative offices Section 3 Commitment: The Cypress Security contract is not federally-funded or subject to Section 3. However, Cypress made a commitment to hire a total of sixteen (16) Section 3 Residents. Seven (7) of these positions were filled during 2015 with the remaining nine (9) to be filled in Section 3 Annual Report
10 Business Profiles Professional Services Contractor: West Coast Arborists Project Name: Tree Trimming and Tree Removal Services Section 3 Commitment: Under a previous contract with HACLA, West Coast Arborists hired two Section 3 Residents into permanent positions with the company. In 2015, HACLA and West Coast entered into a new contract under which they committed to hiring two additional Section 3 Residents into permanent positions. Contractor: Anderson Environmental Project Name: Jordan Downs Redevelopment Section 3 Commitment: This environmental consulting firm is working with HACLA for the 9901 Alameda site remediation and has hired a Section 3 Resident from Jordan Downs as an Environmental Technician. The Section 3 Resident has received extensive training and mentorship and has acquired transferable skills that will enable her to to assist Andersen Environmental (or similar employers) with a wide range of projects. Section 3 Annual Report 2015 Contractor: American Integrated Project Name: Jordan Downs Redevelopment Section 3 Commitment: A total of four Section 3 Residents have been hired with American Integrated during the remediation phase of the 9901 Alameda project. The Section 3 Residents received training and valuable jobs skills to pave the way for successful careers in the field. Additional Section 3 Residents from Jordan Downs will be hired for the subsequent stages of the project as HACLA moves forward with its revitalization and redevelopment of Jordan Downs. 9
11 Business Profiles Materials-Only Contracts Section 3 does not apply to materials-only contracts (no labor component). However, under HACLA s Section 3 Guide and Compliance Plan, Section 3 is applied to such contracts when reasonably feasible. The following are 2015 contracts where Section 3 was imposed. Contractor: Staples Contract & Commercial Inc. Project Name: Office Supplies Section 3 Commitment: Staples committed to contributing up to three percent (3%) of all contract expenditures to HACLA s Section 3 Fund with the condition that the dollars be used to provide supplies and equipment to HACLA s WorkSource Center and computer labs at public housing sites. This will allow HACLA s WorkSource Center and computer labs to update computers and printers and provide needed supplies to residents for their job searches, resume preparation and career and educational development. Contractor: HD Supply Facilities Maintenance LTD Project Name: Maintenance, Repair and Operating Supplies Section 3 Commitment: HD Supply committed to providing four training classes per contract year to Section 3 Residents. Safety, maintenance, plumbing and electrical classes were held in 2015 and a total of 38 Section 3 Residents received the training. HD Supply also provided materials and supplies to participating residents. The trainings were highly successful and HD Supply has offered to provide additional trainings in 2016 and subsequent years. Contractor: Pristine Windows, Inc. Project Name: Mar Vista Windows Replacement (windows only) Section 3 Commitment: Pristine Windows, Inc., committed to hiring a Section 3 Resident to train in measuring and sequencing of windows for the Mar Vista Windows Replacement project. In addition, Pristine Windows is a self-certified minority, small and Section 3 Business. Section 3 Annual Report
12 Jobs Created A total of 53 residents were hired in This is a significant improvement over 2014 as revealed in the tables below and attributable in large part to adoption of the Section 3 Guide and Compliance Plan. 14 Section 3 Resident New Hires Jan Feb Mar Apr May Jun 0 Jul Aug Sept Oct Nov 0 Dec Year Total Section 3 Hires P1* and P2* Hires Section 3 Annual Report 2015 *P1 and P2 refer to Section 3 Residents residing at HACLA owned or managed properties. The remaining new hires were other Section 3 eligible residents from the L.A. Metropolitan Area. 11
13 Section 3 Resident Profiles Abraham Acevedo Aranda (William Mead Homes resident) Project: Tree Trimming and Maintenance Services Contractor: West Coast Arborists It s a great program! It gives residents the opportunity to be able to succeed in life. I feel now that I can not only sustain myself, but more importantly provide for my family. Abraham Acevedo Aranda Miriam Prince (Nickerson Gardens resident) Project: Security Services Contractor: Cypress Security My kids are looking up to me and I want to do something positive for myself and for them. I want them to see the good things in life as they grow up. You won t get anywhere unless you take action and control of your life. Miriam Prince Jacqueline Jones (Jordan Downs resident) Project Name: Jordan Downs Redevelopment Contractor: Anderson Environmental I never even imagined that I can do this kind of work. I thought it is for people with advanced education. Jacqueline Jones Section 3 Annual Report
14 Section 3 Resident Profiles Robert Lowe (Imperial Courts resident) Project Name: Plumbing and Roofing Projects Contractor: Best Choice Plumbing and Letner Inc. I can learn something new every day. Why would I slow down? As an ex-military man I am used to being active to keep me going. Robert Lowe Rosalina Aguilar (Ramona Gardens resident) Project Name: Construction Management, KDG Contractor: Cal City Construction and KDG Construction Management We need to have more Rosas in our companies to get the work done. Jesse Alvarez, KDG Construction Section 3 Annual Report 2015 Charlsey Ray (Qualified Section 3 Resident from San Pedro community, WorkSource Center participant) Project Name: Rancho San Pedro Utility Upgrade (previous Section 3 opportunity with KDG Consulting Co. at Ramona Gardens Utility Upgrade project) Contractor: Cal-City Construction Charlsey puts out so many fires for us. I commend him and give him five stars for his excellent performance. Peter Kim, Cal City Construction 13
15 Section 3 Business Registry The Section 3 Business Registry is a database of businesses that have certified they meet one of the eligibility criteria of a Section 3 Business. HACLA has been developing its own registry as existing HUD and HACLA resources did not include a sufficient number of local businesses to meet our contracting needs. HACLA s outreach efforts have drastically increased the number of registered Section 3 Businesses. At the time of the Section 3 Guide and Compliance Plan adoption, HACLA had identified eight (8) Section 3 Businesses. Today that list has grown to over fifty (50) businesses and continues to increase each month. HACLA uses its Section 3 Business Registry as a resource to contract with Section 3 Businesses and refer them to prime contractors for subcontracting opportunities. The registry is public and available on HACLA s website at To expand our list, HACLA engages in outreach efforts and has developed partnerships with the U.S. Small Business Administration, Chamber of Commerce, City of Los Angeles, County of Los Angeles, Valley Economic Development Center, Women s Business Center and other local organizations and municipalities. Section 3 Businesses receive the following benefits: Bid preferences under Invitation for Bids solicitations; The business is added to HACLA s Section 3 Business Registry and referred to prime contractors for subcontracting needs; and HACLA staff solicit quotes directly from businesses registered on the Section 3 Business Registry for informal solicitations (under $150,000). Section 3 Annual Report
16 Section 3 Outreach and Promotion HACLA conducts outreach to both businesses and residents to promote Section 3. During 2015, HACLA s General Services Department participated in eleven business outreach events with partners such as the U.S. Small Business Administration ( SBA ), County of Los Angeles, Women s Business Center, Chamber of Commerce, Black Business Association and others. HACLA s General Services Department also collaborated with the SBA and utilized its Small Business Database, the HUD Section 3 Registry and HACLA vendors (new and old) to identify additional Section 3 Businesses to increase the number of vendors included in HACLA s Section 3 Business Registry. Outreach to Section 3 Residents is conducted by HACLA s Workforce Development Division under the direction of HACLA s Human Resources Department. Other HACLA activities included joining Section 3 learning groups comprised of fellow housing authorities (including New York and Chicago) for monthly teleconferences where best practices and Section 3 administration issues are discussed. Section 3 Annual Report
17 Resources and Forms HACLA s website is a one stop shop to learn about Section 3. The pages are populated with forms and resources to assist current and prospective vendors in understanding Section 3 including a Frequently Asked Questions ( FAQ ) section that answers commonly asked questions. Our goals include ensuring that HACLA vendors understand their Section 3 responsibilities and assisting them in successfully meeting those responsibilities. We also want to ensure that Section 3 Residents are aware of the employment opportunities and training resources available to them. All Section 3 forms and a link to the Resident Employment Registry are available at along with a variety of information and resources. Section 3 compliance is addressed at all pre-bid conferences. Bidders are encouraged to seek Section 3 Compliance Administrator assistance in developing their Section 3 Economic Opportunity Plans and identifying Section 3 Business Concerns for subcontracting needs. Section 3 implementation and hiring is also discussed in detail at pre-construction meetings. In addition to the above, the Workforce Development Division leverages its resources to recruit qualified Section 3 Residents and links them to contractors for fulfilling employment commitments. HACLA maintains a Section 3 Resident Registry which helps us readily recruit candidates for positions. Moreover, HACLA s unique position as the only public housing authority in the nation to operate a WorkSource Center inside a public housing site gives HACLA further access to a pool of Section 3 Residents. Section 3 Annual Report
18 Looking Ahead HACLA s commitment to Section 3 goes beyond meeting the minimum HUD requirements as demonstrated by our Board s adoption of the Section 3 Guide and Compliance Plan. We strive to do more and fully support the spirit and intent of Section 3. Our successes in 2015 touch upon what s possible. Our dedicated Section 3 Compliance Administrator continues to explore all avenues and resources to bring employment, training and other economic opportunities to Section 3 Residents and Business Concerns. One of the main initiatives for 2016 will be the launch of a How to Do Business with HACLA workshop series. We continue to learn and grow and expand our offerings. We look forward to continuing to work with our vendors and residents to realize the promise of Section 3 and look forward to sharing those success stories with you. Section 3 Annual Report
19 Housing Authority of the City of Los Angeles 2600 Wilshire Blvd. Los Angeles, CA Housing Authority of the City of Los Angeles General Services Department 2600 Wilshire Blvd, 4 th Floor Los Angeles, CA Section3@hacla.org 18 Section 3 Annual Report 2015
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