Section 3 Plan
Section 3 Purpose
Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170Iu), as amended, requires that the City of Jasper, Texas, ensure that training, employment and other economic opportunities generated by certain HUD financial assistance for housing and community development programs shall, to the greatest extent feasible. be given to low- and very low- income persons, particularly those who are recipients of governmental assistance for housing, andtobusinesses thatprovide economic opportunities forthesepersons.
City of Jasper,Texas Responsibilities
The City will ensure that the contractors and subcontractors performing work on Section 3 funded activities are in compliance with the Section 3 requirements as well as meeting or exceeding the numerical goals as outlined in the HUD Act.
To fulfill this responsibility the City has appointed a Section 3 Coordinator whose responsibilities are compliance and monitoring of all Section 3 activities tor CDBG Disaster Recovery Program fundedprojects.
The initial steps that must be taken by the Coordinator to ensure that the City and its contractors meet or exceed the designated numerical goals will be to complete the following requirements:
• Coordinate and/or conduct outreach opportunities to Section 3 businesses
• Conduct training for Department staffmembers semi-annually
• Notify contractors of Section3 responsibilities
• Certify Section 3 businesses- contractor responsibility
• Certify Section 3 residents- contractor responsibility
• Document Section 3 compliance actions
• Participate in the pre-bid, pre-construction. bid opening and or construction meetings to ensure that Section 3 business concerns are addressed
• Ensure that the Section 3 clause is noted in all contracts with required goals"
• Prepare,create and/or submit required Section 3 Reports to the GLO
Further discussion of the list requirements are detailed throughout the Plan. The minimum numeric goals are:
• Thirty percent (30%) of total number of new hires as Section 3 Residents (i.e. l out of 3
• Ten percent (10%) of all awarded construction contracts, awards to Section 3 Business
• Three percent (3%) of all awarded non-construction contracts. awards to Section
*All Section 3 covered bidders will be required to meet Section 3 requirements in order to have a compliant bid.
Types of economic opportunities available under Section 3:
• Jobs and employment opportunities
• Training and educational opportunities
• Contracts and business opportunities
Section 3 Residents
Types of recipients receiving economic opportunities under Section 3that should be
given priority in hiring for training and employment are those who are:
• Persons in public assisted housing including persons with disabilities
• Persons in the affected project neighborhood
• Participants in HUD Youth-build programs
• Where the Section 3 project is assisted under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301et seq.), homeless persons residing in the service area or neighborhood in which the Section 3 covered project is located.
A resident seeking Section 3 preference shall submit a Section 3 Resident Certification Form to the Section 3 Coordinator or the contractor or subcontractor to verify and approve the certification,
According to HUD, a Self-Certification is an acceptable means for establishing eligibility as a Section 3 Resident. However, recipients may utilize acceptable supporting documentation with the Section 3 Resident Certification Form to include:
• Proof of residency in a public housing development
• Evidence of participation in a HUD Youth build program operated in the metropolitan
(or non-metropolitan 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-low-income persons
• 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
Section 3 Business Concern
All Section 3 covered contractors shall provide information to the City to determine if a business qualifies for Section 3 designation by performing a Section 3
Business Concern Certification.
A Section 3 Business Concern is one that is:
• Ownership of fifty one percent (5I%) o rmore bySection 3 Residents; or
• Employs at least thirty percent (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 twenty five percent (25%) of the dollar award of all subcontracts to be awarded to business concerns that meet one of the first two qualifications above.
The City will include the "Contractor Certification of Section 3 Compliance Notice", in all bid packets. Additionally, the City will incorporate the Section 3 Clause into all solicitations and any contracts or subcontracts in excess of $100,000 (24CFR Part 135.38)
Preference for Section 3 Business Concerns:
Preference shall be awarded to Section 3 Business Concerns according to the following system:
• Where the Section 3 Covered Contract is to be awarded based upon the lowest price, the contract shall be awarded to the qualified Section 3 Business Concern with the lowest bid. The award shall be made to the source with the lowest bid,but Section 3 goals shall be required for all bidders.
In responding to Bids all contractors and subcontractors are required to comply with the City of Jasper, Texas Section 3 Plan. The contractor and the City will review the Section 3 Plan procedures and applicable forms that the contractor wil luse to report progress toward Section
Direct employment of qualified candidates
All general contractors and/orsub-contractors shall ensure that thirty percent (30%) of new hires will be Section 3 residents. During the development of the contract, the contractor will negotiate with the City for the number of Section 3-qualified candidates to be employed. The contract will obligate the contractor to achieve no less than the numerical goal established during the negotiation. Additionally, the contractor and/or sub-contractor will provide employed Section 3 residents with applicable training and/or educational opportunities.
Guidelines for Direct Employment
• Contractors should provide job opportunities for skilled and unskilled workers.
• Contractors should maintain employment for candidates throughout the duration of a project (candidates will be employees of the contractor or subcontractor, not the City.)
• AII contracts using PHA resident workers and low-and very low-income persons who live in the County where a HUD assisted project is located under Section 3 are subject to the Davis-Bacon Act Wage Rate and the current HUD Form 52158, Maintenance Wage Rate Determination.
• All Contractors and Subcontractors will be required to post all new hire opportunities with the local Workforce Solutions Center. WorkinTexas.com, and the City'S Section 3 Coordinator.
Compliance and Monitoring of Section 3
The Section 3 Coordinator will analyze and evaluate the contractor's compliance with requirements and obligations set forth in the contract. In the event that a review reveals a contractor has not complied with Section 3 requirements, the City will undertake efforts to help the contractor achieve compliance.
In the event the contractor encounters a problem with a Section 3 employee (employee walks off job or quits; termination; job performance; attendance; tardiness; drug or alcohol use), the contractor should fully document the situation and immediately provide the documentation to the City Section 3 Coordinator.
Ongoing failure or refusal to comply with the Section 3Plan and contract may result in payment being withheld by the City until compliance is achieved or termination of the contract. Debarment or suspension of the contractor or limited denial of participation pursuant to 24 CFR Part135 may result, when applicable.
The contractor and OR sub-contractor shall submit monthly reports regarding the status of each Section 3 participant. An annual report will also be requested from each contractor andlor subcontractor in connection to the performance of each project. This Annual Report will document the efforts and success of all Section 3 participants and subcontractors working under the general contractor, in reaching the percentage goals for employment and business opportunities established in these polices.
The contractor and/or subcontractor shall submit weekly-certified payroll reports to the
Section 3Coordinator. This report shall be submitted weekly and clearly identify Section 3
Failure to Meet Required Goals
The contractor will be given 30 days to achieve compliance otherwise thereafter payment from the City will stop.The contract may be terminated after 60 days.
Training and/or outreach efforts
The City will conduct the following trainings:
• Conduct training for Department staffmembers semi-annually.
• Conduct training tor contractors atpre-bid conferences andpre-construction meeting.
The City will document actions taken to comply with the employment, training, and contracting requirements of Section 3, the results of actions taken. and impediments encountered. Records will include 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 City will submit to the GLO:
• Section 3 Monthly Progress Report
• Section 3 Annual Summary Report
Contractors will submit to the City:
• New Hire Section 3 Monthly Compliance Report
• Training and Educational Documentation
Complaints regarding the City'S Section 3 Program must be submitted in writing to the Section 3 Coordinator. All complaints must include the complainant's name, address, telephone number, and a brief narrative detailing the complaint. including but not limited to, the date of the alleged violation and the date the alleged violation was discovered. Complaints shall be filed within 30 calendar days after the complainant becomes aware of any alleged violation.
The Section 3 Coordinator will investigate every complaint. All parties involved will have the opportunity to submit testimony and/or evidence as may be available and relevant to the complaint. The Section 3 Coordinator will issue a written determination within 30 days after the filing of the complaint.
Filing a complaint does not terminate a contractor's Section 3 requirements. Contractors remain accountable for fulfilling the agreed upon Section 3 requirements.
All complaints should be submitted to:
The applicant Section 3 Coordinator
Office hours are between 8:00a.m. and 5:00 p.m. except on posted holidays.
Mike Lout, City Representative