ATTACHMENT D. Houston-Galveston Area Council. Subregional Disaster Recovery Housing Program Guidelines. Section 3 Plan

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1 ATTACHMENT D Houston-Galveston Area Council Subregional Disaster Recovery Housing Program Guidelines Section 3 Plan Using an effective program under Section 3 of the Housing and Urban Development Act of 1968 may help members of protected classes gain economic opportunities necessary to allow them to exercise fair housing choice. (January 2011, State of Texas Analysis of Impediments to Fair Housing) September 2012

2 Table of Contents Introduction... 1 General Policy Statement... 1 Section 3 Purpose... 1 Applicability... 1 Section 3 Advisory Committee... 2 Section 3 Definitions... 3 Section 3 Coordinator... 6 Workforce Needs Analysis... 6 Training on Section Post-Award Section 3 Meeting... 7 Compliance with Section Section 3 Contracting Opportunity Goals... 7 Employment and Training Opportunity Goals... 8 Section 3 Residents... 8 Section 3 Business Concerns... 9 Section 3 Preference Section 3 Clause Covered Contractors: Formal Section 3 Plan Components of a Covered Contractor s Section 3 Plan Implementation Strategies Section 3 Best Practices Reporting Requirements Complaint Process Exhibits

3 Introduction The Houston-Galveston Area Council (H-GAC) functions as a Regional Planning Commission under Ch. 391 of the Texas Local Government Code, covering Austin, Brazoria, Chambers, Colorado, Fort Bend, Galveston, Harris, Liberty, Matagorda, Montgomery, Walker, Waller and Wharton Counties, regionally known as the Upper Texas Gulf Coast. A portion of H-GAC s financing consists of HUD CDBG Disaster Recovery funds, which it administers as a Recipient of HUD CDBG Disaster Recovery funds through the State of Texas pursuant to a contract entered into with the Texas General Land Office (GLO) to develop a Subregional Disaster Recovery Housing Program, covering six of the thirteen counties in H-GAC s jurisdiction: Austin, Brazoria, Fort Bend, Matagorda, Walker and Waller Counties. Please direct any general questions about the Disaster Recovery Housing Program to Miles G. Arena, H-GAC Disaster Recovery Coordinator at General Policy Statement The H-GAC Subregional Disaster Recovery Housing Program will comply with the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C u). Section 3 Purpose The Section 3 Act was enacted by HUD (12 U.S.C. 1701u), as amended, to ensure that certain training, employment and economic opportunities generated by certain HUD-funded Section 3 Covered Assistance are directed, to the greatest extent feasible, and consistent with existing Federal, State and Local laws and regulations, to low- and very low-income persons, particularly to those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- to very low-income persons (See Section 3 Definitions Section). Being a Recipient of Section 3 Covered Assistance exceeding the $200,000 threshold, H-GAC is obligated to comply with the Section 3 Act and the Section 3 Regulations, which includes creating and adopting a Section 3 Plan. H-GAC is committed to this purpose and will make every effort to ensure its staff and General Contractor and Subcontractors receiving Section 3-covered funding from H-GAC maintain compliance with the Section 3 requirements, as outlined in 24 CFR Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of contracts for default, and debarment or suspension from future HUD assisted contracts. (24CFR (F)) Applicability Section 3 requirements for the H-GAC Disaster Recovery Housing Program are triggered when HUD-sourced assistance is expended for housing rehabilitation or housing construction that are equal to or greater than $200,000 and sub-contracts of such projects in the amount of $100,000 or more (see below). Covered projects under H-GAC s Disaster Recovery Housing Program include: Housing Rehabilitation (including reduction of lead-based paint hazards, and demolition); and, 1 Page

4 Housing Construction (including reduction of lead-based paint hazards and demolition) Section 3 does not apply to Homebuyer Assistance activities (e.g. down payment assistance). Section 3 requirements apply to the entire project or activity, regardless of whether it is fully or partially funded, (135.3(b)). Section 3 Advisory Committee The H-GAC will establish a Subregional Disaster Recovery Housing Program Section 3 Advisory Committee for the following purposes: To review the progress of the Section 3 program, Suggest program improvements, Suggest community outreach and training opportunities, and Provide all recommendations to the H-GAC Board of Directors for consideration. The Subregional Disaster Recovery Housing Program Section 3 Advisory Committee will be comprised of two (2) of each of the following: Community Leaders, Community Development Administrators in counties served, Section 3 workers, Women and Minority-owned businesses, Section 3 Businesses, and H-GAC Subregional Disaster Recovery Housing Program administrators. The Subregional Disaster Recovery Housing Program Section 3 Advisory Committee will meet at least quarterly, unless otherwise determined by majority of votes by the committee, and 5 members of the committee can together call additional meetings. All meetings shall be open to the public, and all reports from contractors shall be available to the committee (with any personal information redacted). 2 Page

5 Section 3 Definitions Employment Opportunities Generated by Section 3 Covered Assistance all employment opportunities generated by the expenditure of Section 3 covered projects (as described in 135.3(a) (2), including management and administrative jobs connected with the Section 3 covered project. Management and administrative jobs include architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to administrative support of these activities, e.g., construction manager, relocation specialist, payroll clerk, etc. (24 CFR 135.5) Housing and Community Development Assistance any financial assistance provided or otherwise made available through a HUD housing or community development program through any grant, loan, loan guarantee, cooperative agreement, or contract, and includes community development funds in the form of community development block grants, and loans guaranteed under section 108 of the Housing and Community Development Act of 1974, as amended. Housing and community development assistance does not include financial assistance provided through a contract of insurance or guaranty. (24 CFR 135.5) HUD Youthbuild Programs programs that receive assistance under subtitle D of Title IV of the National Affordable Housing Act, as amended by the Housing and Community Development Act of 1992 (42 U.S.C ), and provide disadvantaged youth with opportunities for employment, education leadership development, and training in the construction or rehabilitation of housing for homeless individuals and members of low- and very low-income families. (24 CFR 135.5) Low-income Person families (including single persons) whose household incomes do not exceed 80 per centum of the median income for the area. (24 CFR 135.5) To determine if a household s income is considered low-income, HUD s income limits may be obtained from: Metropolitan Area metropolitan area means a metropolitan statistical area (MSA), as established by the Office of Management and Budget. (24 CFR 135.5) Non-metropolitan County any county outside of a metropolitan area. (24 CFR 135.5) New Hires a full-time employee for a new permanent, temporary, or seasonal position that is created during the expenditure of Section 3 covered financial assistance. (24 CFR 135.5) Recipient any entity which receives Section 3 covered assistance, directly from HUD or from another recipient and includes, but is not limited to, any State, unit of local government, PHA, or other public body, public or private nonprofit organization, private agency or institution, mortgagor, developer, limited dividend sponsor, builder, property manager, community housing development organization, resident management corporation, resident council, or cooperative association. (24 CFR 135.5) 3 Page

6 Section 3 Clause the contract provisions set forth in (24 CFR 135.5) Section 3 Covered Activity any activity which is funded by Section 3 covered assistance public and Indian housing assistance. (24 CFR 135.5) Section 3 Covered Assistance assistance provided under any HUD housing or community development program that is expended for work arising in connection with: (i) Housing rehabilitation (including reduction and abatement of lead-based paint hazards, but excluding routine maintenance, repair and replacement); (ii) Housing construction; or (iii) Other public construction project (which includes other buildings or improvements, regardless of ownership). (24 CFR 135.5) Section 3 Covered Contract a contract or subcontract (including a professional service contract) awarded by a recipient or contractor for work generated by the expenditure of Section 3 covered assistance, or for work arising in connection with a section 3 covered project. (24 CFR 135.5) Section 3 Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u) (24 CFR 135.1) Section 3 Business Certification form A form used to document a business as a Section 3 Business Concern. Section 3 Business Concern a business concern, (1) That is 51 percent or more owned by Section 3 residents; or (2) Whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or (3) That provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2) in this definition of Section 3 business concern. (24 CFR 135.5) Section 3 Covered Project the construction, reconstruction, conversion or rehabilitation of housing (including reduction and abatement of lead-based paint hazards), other public construction which includes buildings or improvements (regardless of ownership) assisted with housing or community development assistance. (24 CFR 135.5) Section 3 Joint Venture means an association of business concerns, one of which qualifies as a Section 3 business concern, formed by written joint venture agreement to engage in and carry out a specific business venture for which purpose the business concerns combine their efforts, resources and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which section 3 business concern (1) is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and (2) performs at least 25% of the work and is contractually entitled to compensation proportionate to its work. (24 CFR ) 4 Page

7 Section 3 Resident 1) a public housing resident; or 2) a low- or very low-income person residing in the metropolitan area or non-metropolitan county where the Section 3 covered assistance is expended. (24 CFR 135.5) Section 3 Resident Self Certification Form form used to document a resident of a local community as a Section 3 Resident. Service Area is the geographical area in which the persons benefiting from Section 3 covered project reside. The Service Area shall not extend beyond the unit of local government in which the Section 3 covered financial assistance is expended. (24 CFR 135.5) Subcontractor any entity (other than a person who is an employee of the contractor) which has a contract with a contractor to undertake a portion of the contractor s obligation for the performance of work generated by the expenditure of Section 3 covered assistance, or arising in connection with a Section 3 covered project. (24 CFR 135.5) The greatest extent feasible every effort must be made to comply with the regulatory requirements of Section 3, meaning Recipients of Section 3 covered financial assistance should make every effort within their disposal to meet the regulatory requirements. For instance, this may mean going a step beyond the normal notification procedures for employment and contracting procedures by developing strategies that will specifically target Section 3 residents and businesses for these types of economic opportunities. (HUD s FAQ s): Very low-income Person families (including single persons) whose household income does not exceed 50 per centum of the median family income for the area.) (24 CFR 135.5) To determine if a household s income is considered very low-income (very low income is defined as 50% or below the median income of that area.) HUD s income limits may be obtained from: 5 Page

8 Section 3 Coordinator H-GAC s Section 3 Coordinator will serve as the immediate point of contact for the GLO s Section 3 Coordinator and Section 3-covered General Contractors and Subcontractors. The Section 3 Coordinator is available to assist Contractors in meeting their Section 3 Requirements. The H-GAC Section 3 Coordinator certifies businesses and individuals as Section 3 Business Enterprises or Section 3 Residents. In addition, the Section 3 Coordinator will provide Contractors with Section 3 materials, including the Section 3 Act, Section 3 Regulations, and this H-GAC Section 3 Plan. Section 3 documentation, monitoring reports, questions and/or concerns should be addressed to: H-GAC Attn: Miles G. Arena, Disaster Recovery Coordinator H-GAC Subregional Disaster Recovery Housing Program P.O. Box Houston, TX Phone: Fax: Miles.Arena@h-gac.com The General Contractor and Covered Subcontractors will appoint a Section 3 Coordinator and provide the name, address, telephone number and address of this individual to the H-GAC Section 3 Coordinator. This person will be the direct point of contact with the H-GAC Section 3 Coordinator and advise contractor personnel and management on the company s Section 3 compliance requirements. In addition, the coordinator will be responsible for the submission of all required Section 3 reports to the H-GAC Section 3 Coordinator. Further, this individual will serve as the point of contact for Section 3 complaints and as the on-site monitor of the General Contractor or covered Subcontractors implementation of their respective Section 3 Plans. Workforce Needs Analysis The Section 3 Coordinator will facilitate the steps needed to perform a prospective Workforce Needs Analysis that could be used to identify and quantify training, employment and contracting opportunities available in the project service area and within the remainder of H- GAC s jurisdiction. The Section 3 Coordinator will utilize current partnerships within the Gulf Coast Workforce Development Board and staff as well as utilize data compiled by local workforce centers. Data regarding such employment and contracting indicators as labor demand, wages and changes within regional covered employment data for relevant industry sectors will be reviewed. The resulting analysis may be used in Section 3 training. Training on Section 3 The H-GAC Section 3 Coordinator is available to provide training and technical assistance to General Contractors and Subcontractors interested in bidding on H-GAC s Section 3-covered Disaster Recovery Housing Program developments regarding Section 3 program requirements. Technical assistance may consist of training regarding Section 3 regulations, identifying employment opportunities and training programs available to Section 3 Residents, and information on outreach to Section 3 Residents and Section 3 Business Concerns. During various phases of the project, the H-GAC Section 3 Coordinator may also: develop Section 3 forums and make presentations at seminars and panel discussions on Section 3; and engage 6 Page

9 additional H-GAC staff who will assist the H-GAC Section 3 Coordinator in the acquisition, assemblage, review and analysis of reports submitted by Contractors. Post-Award Section 3 Meeting Once H-GAC has awarded the Section 3 Covered Assistance, it will schedule a meeting with the General Contractor and other Section 3-covered Subcontractors to discuss the Section 3 Requirements. This meeting may be part of the preconstruction conference agenda or held separately. Attendees will include the H-GAC Disaster Recovery Coordinator, H-GAC Section 3 Coordinator, General Contractors, various H-GAC personnel, and the General Contractor's and/or Subcontractors Section 3 Coordinator(s), if selected. The purpose of the meeting is to address any questions the attendees may have regarding compliance with Section 3 Regulations. All attendees will be provided with a copy of the H-GAC Section 3 Plan, the Section 3 Act, the Section 3 Clause and the Section 3 Regulations. The General Contractor and covered Subcontractors will also be required to submit HUD Section 3 Acknowledgement and Action Plan Form (Exhibit L) to the H-GAC Section 3 Coordinator acknowledging receipt of the foregoing documents as well as its understanding that Section 3 Regulations apply to the specific Section 3 Covered Project, and its commitment to submit a Section 3 Plan in accordance with the deadlines set out in the Request for Proposal documents. Compliance with Section 3 According to the Section 3 Regulations, located at 24 CFR Part 135, the Section 3 requirements are not imposed upon a Recipient that does not engage in the hiring or training of persons, but instead awards contracts to General Contractors and Subcontractors that hire and train in connection with Section 3 Covered Projects. According to the Section 3 Regulations, H-GAC may comply with Section 3 by ensuring that the General Contractors and Subcontractors receiving Section 3 Covered Assistance comply with the Section 3 Act. H-GAC will ensure that, to the greatest extent feasible, Contractors will make good faith efforts to provide training, employment, and contracting opportunities to Section 3 Residents and Section 3 Business Concerns. Contractors may demonstrate compliance with the greatest extent feasible (CFR ) requirement of Section 3 by meeting or exceeding HUD s numerical goals for providing training, employment, and contracting opportunities to Section 3 Residents and Section 3 Business Concerns. The numerical goals established in this section represent minimum goals and are considered safe harbor numerical targets. H-GAC strongly encourages General Contractors and Subcontractors to adopt numerical goals that exceed the minimum requirements. Section 3 Contracting Opportunity Goals General Contractors and Subcontractors with Section 3 Covered Contracts must establish certain contracting opportunity goals for Section 3 Business Concerns in connection with the Section 3 Covered Project. These numerical goals apply to contracts awarded by the General Contractor or Subcontractor. These goals can be met by achieving, at a minimum, the following benchmarks: 10% of the total amount of all Section 3 covered contracts for building trades work awarded to Section 3 Business Concerns; 3% of the total dollar amount to all other contracts, such as professional service contracts, awarded to Section 3 Business Concerns. 7 Page

10 Employment and Training Opportunity Goals The Section 3 Act requires the General Contractor and covered Subcontractors to utilize Section 3 Residents in relation to the development of Section 3 projects, to the greatest extent feasible. Specifically, the General Contractor and Subcontractors must establish certain Section 3 goals for each Section 3 Project. The minimum numerical goal allowed for Section 3 New Hire employment and training is: 30% of the total number of new hires are Section 3 Residents (1 out of every 3) Employment and training goals may be met by either directly providing the employment or training or by facilitating the employment or training. That is, the General Contractor or covered Subcontractors may satisfy the Section 3 employment and training goals by arranging for the employment or training of Section 3 Residents in connection with Section 3 Covered Projects. The H-GAC Section 3 Coordinator is available to provide technical assistance in order to meet these employment and training goals. The General Contractor and covered Subcontractors must provide in its Section 3 Plan a breakdown of job categories and positions needed for the Section 3 Covered Project, including positions occupied by permanent employees. If the General Contractor or Subcontractor does not have any employment or training opportunities available in connection with the Section 3 Covered Project, this must be reflected in its Section 3 Plan. If a covered contractor fails to fully meet the Section 3 minimum numerical goals, they must be prepared to demonstrate that efforts were made in an attempt to meet the numerical goals. Failure to meet numerical goals requires a detailed explanation to the H-GAC, as H-AGC is responsible to the GLO for this requirement. H-GAC will then examine the contractor s documented efforts and provide technical assistance as necessary. However, failure to comply may lead to sanctions, suspension and limited denial of participation pursuant to HUD s regulations in 24 CFR part 24, where appropriate, may be applied to the recipient [H-GAC] or the contractor. (24 CFR ) Section 3 Residents Residents to be given priority in hiring are those who live in the service area where a Section 3 project is located who are either: Public housing residents including persons with disabilities; Low-income or very-low-income person(s) who live in the metropolitan statistical area (MSA) or non metro county area of project; HUD Youthbuild program participants (centers in Austin, Houston, Kendleton, El Paso, New Waverly, San Antonio, Brownsville, and Dallas); Homeless, defined under McKinney Act (42 U.S.C et seq.). A resident seeking Section 3 preference shall submit a Section 3 Resident Certification Form (see Exhibit A for sample) to H-GAC s Section 3 Coordinator or the Contractor or Subcontractor to verify and approve the certification. The H-GAC s Section 3 Coordinator will maintain a list of Section 3 Residents for current and/or future Section 3 job opportunities. 8 Page

11 HUD has clarified that a Self-Certification is an acceptable means for establishing eligibility as a Section 3 Resident. However, in addition to the Section 3 Resident Certification Form, H-GAC verification of Section 3 eligibility may consist of any of the following: Evidence of income (most recent W-2 or income tax return) Proof of residency in a public housing development (Example: a public housing authority lease agreement); Evidence of participation in a HUD Youthbuild program operated in the metropolitan (or nonmetropolitan county) where the Section 3 covered assistance is spent; Copy of Section 8 voucher certificate or voucher; Evidence of eligibility or participation in a federally-assisted program for low- and very- lowincome persons (e.g. Jobs, JTPA, Job Corps, etc.); Evidence that the individual resides in the Section 3 area and is a low or very-low-income person, as defined in Section 3(b) (2) of the U.S. Housing Act of 1937 (1937 Act); Other acceptable documentation to H-GAC. Evidence of income eligibility must be provided by the Section 3 Resident. To be income eligible the Section 3 Resident must qualify either as a low-income person or a very low-income person". For further explanation, please refer to the definition of a Section 3 Resident found earlier in these guidelines. Section 3 Business Concerns To determine if a business qualifies for Section 3 designation, H-GAC and/or its assigned Section 3 Coordinator will perform a local Section 3 Business Concern Certification. H-GAC and/or its assigned Section 3 Coordinator will verify and approve the certification (see sample form for a Business Concern Certification Exhibit B attached in this policy). H-GAC may refer to the GLO s Section 3 Business Certification listing to see if the applicable business is already listed as a Section 3 Business Concern. A Section 3 Business Concern is one that is: Owned by 51% or more by Section 3 Residents; or Employs at least 30% of employees who qualify as Section 3 Residents (or within 3 years of the date of first employment with the business concern were Section 3 Residents); or Commits to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to business concerns that meet one of the first two qualifications above. H-GAC will include the Contractor Certification of Efforts to Comply Notice (Exhibit C), in all bid packets. Contractors and Subcontractors must post all new hire opportunities with the local Workforce Solutions Center and WorkinTexas.com. 9 Page

12 Section 3 Preference HUD requires that preference be given to Section 3 Residents in training and employment opportunities and preference for contracting opportunities be given to Section 3 Business Concerns. I. Recipients [H-GAC] and their contractors and subcontractors will provide Preference for Section 3 Residents in training and employment opportunities and shall direct their efforts to provide to the greatest extent feasible training and employment opportunities generated from expenditure of Section 3 covered assistance to Section 3 Residents (24 CFR ) in order of priority: Section 3 Residents residing in the service area or neighborhood in which the Section 3 covered project is located (collectively, referred to as category 1 residents); and Participants in HUD Youthbuild programs (category 2 residents); Where the Section 3 project is assisted under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C et seq.), homeless persons residing in the service area or neighborhood in which the Section 3 covered project is located shall be given the highest priority; Other Section 3 Residents. Types of Economic Opportunities that may arise from a Section 3 Project: All employment opportunities arising in connection with housing rehabilitation (including reduction and abatement of lead base paint hazards) and housing construction (i.e., management and administrative jobs, technical, professional, and construction and nonconstruction jobs; and jobs at all levels). HUD offers examples of efforts that can be made to Offer Training and Employment Opportunities to Section 3 Residents training (see Exhibit D). A Section 3 Resident seeking the preference in training and employment provided by this part shall certify, or submit evidence to H-GAC, Contractor or Subcontractor, if requested, that the person is a Section 3 Resident. A Section 3 Resident must demonstrate that they meet the qualifications for new employment opportunities created as a result of the expenditure of the covered assistance. II. Preference for Section 3 Business Concerns in contracting opportunities (24 CFR ), Recipients [H-GAC], contractors and subcontractors shall direct their efforts to award Section 3 Covered contracts, to the greatest extent feasible, to Section 3 Business Concerns in order of priority to: (First priority)- Business concerns that provide economic opportunities for Section 3 residents in the service area or neighborhood in which the Section 3 covered project is located (category 1 businesses); (Second priority)- HUD Youthbuild programs (category 2 businesses); (Third Priority)- Other Section 3 Business Concerns. 10 Page

13 A business concern seeking to qualify for a Section 3 contracting preference shall certify and may be required to submit evidence that the Business Concern is a Section 3 Business Concern; and demonstrate to the satisfaction of the party awarding the contract that the business concern is responsible and has the ability to perform successfully under the terms and conditions of the proposed contract. (24 CFR 85.36) This regulation requires consideration of, among other factors, the potential contractor s record in complying with public policy requirements. The ability to perform successfully under the terms and conditions of the proposed contract is required of all Contractors and Subcontractors subject to the procurement standards of 24 CFR 85.36, 24 CFR 85.36b(8). HUD offers examples of procurement procedures that provide for preference for Section 3 Business Concerns. (See Exhibit E). In order to show preferences for Section 3 Business Concerns, H-GAC and its selected contractors may: Incorporate (Exhibit C) into procurement notices; Provide a Section 3 Business Certification form, with bid packets and require form completion at bid submittal; Require contractors to submit a listing of needed trades for possible new hires for the Section 3 project at bid submittal or prior to bid closing; Procurement procedures may include a scoring matrix that outlines scoring preference to Section 3 business concerns. Award proposal points for any builder having an existing training or apprenticeship program for the designated Section 3 Residents and Business Concerns that will be used on the project. Award proposal points for any builder having an apprenticeship or training program for Section 3 residents directed toward training craftsmen or qualifying agents in trades that are required by state or local regulations to be certified, such as electricians, plumbers, HVAC mechanics, etc. Section 3 Clause H-GAC will incorporate the Section 3 Clause into all solicitations and any contracts or subcontracts in excess of $100,000 (24 CFR ) (See Exhibit F). Covered Contractors: Formal Section 3 Plan Potential General Contractors and covered Subcontractors shall submit and sign the HUD Section 3 Acknowledgement and Action Plan Form (Exhibit L) in accordance with deadlines set in Request for Proposal documents for proposal scoring purposes. Selected General Contractors will submit a signed Section 3 Plan, which will include in detail its Section 3 goals. The Section 3 Plan will be submitted to the H-GAC Section 3 Coordinator for review and approval, in accordance with the deadlines set forth in Request for Proposal documents, as may be revised by any written 11 Page

14 extensions. A template Section 3 Plan is included as (Sample 3) in which to incorporate the components and appropriate implementation strategies listed below. Upon submission of the Section 3 Plan, the H-GAC Section 3 Coordinator will review it and either approve it, conditionally approve it, with suggested modifications or disapprove the plan. H-GAC will not issue a firm commitment to the General Contractor until a Section 3 Plan has been approved. After the Section 3 Plan has been approved, it will become a part of the construction documents, and the H-GAC Section 3 Coordinator will review and monitor it regularly to assess its implementation, compliance with Section 3 regulations and the attainment of the Section 3 goals. As subcontracts in excess of $100,000 are awarded by the General Contractor, those Subcontractors will be required to submit their own Section 3 Plans and compliance documents to the General Contractor s Section 3 Coordinator to review for completeness. All received Section 3 Plans will then be forwarded to the H-GAC Section 3 Coordinator for approval. Other items that must be submitted to H-GAC include copies of all bid documents that are submitted and all contracts that are awarded. Components of a Covered Contractor s Section 3 Plan The Section 3 Plan must include specific information, not limited to the following: a) General Contractor or Subcontractor's statement certifying it intends to comply with the Section 3 Act and Section 3 Regulations, as well as the H-GAC Section 3 Plan; b) General Contractor or Subcontractor's statement certifying each is aware of the employment, training, and contracting goals, and agree to work together to meet these goals; c) Name and contact information of the General Contractor or Subcontractor's Section 3 coordinator; d) Identification of the Section 3 Project area (see definition of Neighborhood Area); f) General Contractor or Subcontractor's Contractor s workforce necessitated by the Section 3 Covered Project; g) General Contractor or Subcontractor's Section 3 employment, training and contracting opportunity goals; h) Specific strategies for notifying Section 3 Residents of Section 3 employment and training goals; i) Specific strategies for notifying Section 3 Business Concerns of Section 3 contracting opportunities; j) Commitment to inform all Subcontractors of its Section 3 Plan; k) General Contractor s commitment to prepare and submit monthly, quarterly and annual reports to its Section 3 Coordinator for submission to the H-GAC Section 3 Coordinator or his or her designee; 12 Page

15 l) Commitment of General Contractor and Subcontractor to include the Section 3 Clause in all construction contracts and subcontracts exceeding $100,000 awarded as a result of the Section 3 Covered Assistance. m) Commitment by General Contractor and Subcontractor to conduct an aggressive outreach and notification campaign to Section 3 Residents and Section 3 Business Concerns regarding its Section 3 goals, including the usage of site signage, flyers, etc. (See Samples 1 and 2) n) Commitment to provide local Gulf Coast Workforce Solutions locations, employment agencies and local public housing authorities notice of possible employment, training and contracting opportunities to established job pools of Section 3 area residents, and to document those efforts; o) Commitment to refrain from entering into contracts with entities reportedly in violation of Section 3 regulations. p) Inclusion of other strategies which facilitate the achievement of the Section 3 goals established by the General Contractor and Subcontractor Implementation Strategies In order to comply with the Section 3 Act and the Section 3 Regulations, the General Contractor or Subcontractor, as applicable, must implement an aggressive campaign to encourage participation of Section 3 Residents and Section 3 Business Concerns. Some strategies to implement this campaign include the following: a) Maintain a list of lower-income area residents who applied for project employment and employ such persons if appropriate a vacancy exists. b) Publish in a local newspaper a notice of the potential employment and training opportunities for Section 3 Residents and potential contracting opportunities for Section 3 Business Concerns. Written notice must be provided in sufficient time to enable business concerns the opportunity to respond to the bid invitation. c) Post in a prominent location at the Section 3 Covered Project site notice of the potential employment and training opportunities for Section 3 Residents, and potential contracting opportunities for Section 3 Business Concerns. d) Submit letters or flyers to the residents of the Section 3 Covered Project neighborhood area advising them of the employment, training and contracting opportunities for the Section 3 Covered Project; e) Provide the residents of the Section 3 Covered Project and the neighborhood area with information on how to get certified as a Section 3 Resident or a Section 3 Business Concern; f) Provide the local public housing authorities and local Workforce Solutions offices with flyers, notices and other information related to the Section 3 employment, training and contracting opportunities for the Section 3 Covered Project; g) Provide information to residents of a Section 3 Covered Project and the neighborhood area regarding established job training programs located within the Section 3 Covered Project area; h) Provide minority and women-focused labor and trade organizations with notice of Section 3 employment, training and business opportunity goals i) Provide minority and women-focused labor and trade organizations with notice of when and where plans and specifications for bid review will be distributed; 13 Page

16 j) Establish public forums regarding Section 3 Covered Projects being developed within the Section 3 area, in which the General Contractor and Subcontractor will participate; k) Utilize other strategies set forth in Appendix A of the Section 3 Regulations; l) Seek out referral sources in order to ensure job readiness for public housing residents through on-the-job-training (OJT) and mentoring to obtain necessary skills that will transfer into the external labor market. Section 3 Best Practices Section 3 Plans must capture how the General Contractor and Covered Subcontractors will meet or exceed the numerical goals (CFR ). Reporting Requirements H-GAC is obligated to document actions taken to comply with the employment, training and contracting requirements of Section 3, the results of actions taken, and impediments encountered. H-GAC will maintain records of job vacancies, solicitation of bids or proposals, selection materials and contracting documents (including scope of work and contract amount), in accordance with Federal and State procurement laws and regulations. The documentation will demonstrate efforts taken towards the achievement of the Section 3 numerical goals. H-GAC will submit the following compliance reports to the GLO: 1. For Housing activities: a. Complete Section 3 Monthly Progress Report (Exhibit G); b. Section 3 Annual Summary Report (Exhibit H) Contractors must submit to H-GAC: 1. For Housing activities: a. New Hires and New Contracts Section 3 Monthly Compliance Reports (Exhibits G and I); b. Section 3 Annual Summary Report (Exhibit H) Complaint Process In the event that a complaint is received; the GLO Section 3 Coordinator(s) will assist or work with the applicable Recipient [H-GAC or its Contractors] to obtain: Relevant information regarding the complaint at hand; Documentation used to comply with Section 3; Reports submitted to the Recipient to monitor Section 3 compliance; All other relevant information. Complaints will be accepted by the GLO using HUD s Section 3 Complaint Register Form (See Exhibit J). 14 Page

17 EXHIBITS Exhibits A through J and a Section 3 Checklist are available at GLO s website: Page