HomeMy WebLinkAboutExhibit 13XI. Section 3
Program Description (24 CFR 135)
In 1994, the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) was amended by Congress to
help give citizens deprived of economic opportunity increased access to employment and job training. The
Section 3 Act requires recipients of HUD funds and the contractors they employ to ensure that the
economic opportunities generated by the expenditures shall, to the gre extent feasible, be directed to
low- and very low-income persons, particularly those who are recipi= o . •vernment assistance for
housing.
HUD -funded housing and development projects represent a or sou economic activity in many
distressed neighborhoods. The Section 3 legislation assur ha. •uch funto foster local economic
development, neighborhood economic improvement, _ : - u iciency a esidents in the
communities being served. It is the legal basis for p ' tding jobs for residents • arding contracts to
businesses in areas receiving certain type of H1. :r > , nciai as ' tance for certain - tion projects.
The City of Miami will continue to enforce Section 3
requirements.
1. Eligibility Criteria: Eligible
and low income persons who li
A Section 3 business is defined,
welfare recipients, local construct]
a business whntracts with b
tow and vee persons.
2. Comp
Federal Fin
to •rovide eco
s
elfare recipients
is are characters
in which a
t employs
nts: The City
e from HUD
es whic
1 applicable ' ogrammatic
residents of public housing
isted project is located.
sidents of public housing,
d very low income persons, or
de economic opportunities to
i requires recipients who are awarded
construction projects which exceed $100,000
greatest extent feasible, to the following:
od of the project under construction
Build Programs
Complia ' e is based on the numerical hiring goals and contract awards of each individual project.
The numerical goals for each category differ based on two types of economic opportunities: (1)
employment or training opportunities; (2) and award of contract or subcontract to employers who
take into service low to very low income persons. Moreover, the regulations require that "efforts
to employ Section 3 candidates to the greatest extent feasible should be made at all job levels".
The other principal way for Section 3 recipients to comply with the regulations is to award
contracts to Section 3 certified businesses, contractors and subcontractors.
3. Compliance Monitoring: The City of Miami monitors compliance with Section 3 requirements in
an effort to secure uniformity and consistency with Federal Regulations by requesting that entities
awarded contracts in excess of $100,000 develop an Economic Opportunity Plan. The plan will
serve as verification that a good faith effort was executed to solicit, recruit, facilitate and hire
public housing residents and other low-income persons by the contractor or subcontractor.
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The City of Miami has constructed the following Economic Opportunity Plan with the intent to
measure Section 3 training and employment numerical goals and subcontracting goals (where
subcontracting is allowable). In addition, the City distributes a copy of its plan to all contracts
recipients who must adhere to Section 3 regulations. All those who are held accountable for
compliance with Section 3 requirements must render the Economic Opportunity Plan issued by the
City. Each plan submitted must answer and provide written documentation to the following
objectives:
ii. Identify individual(s) responsible for planning, implementing and tracking the projects under
Section 3 training and employment goals;
iii. Describe efforts (contractors and subcontractors) to be take p to recruit, solicit, encourage,
facilitate, and hire public housing and other low-income es, identify any private or
public resources that will be used;
iv. Describe contractor's activities to be taken for re i +liciting, encouraging, facilitating
and selecting Section 3 subcontractors, where = :`'cable,
v. Describe plans to structure project activiti= a : that crea ortunities for Section 3
firms' participation, where applicable.
The City of Miami offers training sess ons tract+ ubcontractors a .usinesses, on how
to solicit, recruit, encourage and facilitate em t of to to very -low come residents. The
City also provides training to those entities that -clinical assistance completing program
forms in an attempt to maintompliance with re +ry guidelines. The City demands from all
contractors, subcontractors, as :' ;` ; any entity seek mentlreimbursement that compliance
with Section 3 requirements ar `" ared by the i Section 3 compliance monitor.
Lack of clearance by the Section com+ +nitor wi ause a delay in the receipt of
payment.
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