SECTION 3 PLAN

FOR

THE HOUSING AUTHORITY

OR

THE CITY OF \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

OFFICE OF ECONOMIC OPPORTUNITY

FAIR HOUSING EQUAL OPPORTUNITY

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

**RESOLUTION**

**A RESOLUTION TO ADOPT THE SECTION 3 PLAN**

**TO COMPLY WITH 24 CFR, PART 135 OF THE**

**UNITED STATES DEPARTMENT OF HOUSING**

## AND URBAN DEVELOPMENT SECTION 3

WHEREAS, the United States Congress passed Section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) to further
the goal of ensuring that federal funds benefit the residents of
projects funded wholly or in part by those funds, and

WHEREAS, Part 135 of Section 3 is to establish the standards and
procedures to be followed to ensure that the objectives of Section 3 are
met; and

WHEREAS, the \_\_\_\_\_\_\_\_\_\_\_\_ Housing Authority, or City of
\_\_\_\_\_\_\_\_\_\_ staff has developed a revised Section 3 Plan in
adherence to 24 CFR, Part 135 that more comprehensively addresses the
standards and procedures prescribed in the Act; and

WHEREAS, the Section 3 Plan has been reviewed by the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Housing Authority's or City of
\_\_\_\_\_\_\_\_\_\_ senior staff members and their comments
incorporated into the Plan.

NOW, THEREFORE, BE IT RESOLVED THAT the Board of Commissioners or City
Council authorizes the \_\_\_\_\_\_\_\_\_\_\_\_ to adopt and implement
the revised Section 3 Plan to ensure compliance with Federal Law.

APPROVED AND ADOPTED this \_\_\_\_\_ day of \_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Chairperson Secretary

**[Table of Contents]{.underline}**

**[Page]{.underline}**

General Policy Statement
.......................................................................................
4

Purpose
..............................................................................................................
5

Section 3 Contracting Policy & Procedure
.................................................................. 6

Section 3 Action Plan
..........................................................................................\...
7

Employment and Training Goals
..............................................................................
8

Certification Procedure for Section 3 Program Participants
............................................ 9

Resident Hiring Requirements
..............................................................................\...
10

Assisting Contractors To Achieve Section 3 Goals
...................................................... 11

Preference for Contracting with Section 3 Business Concerns
....................................... 12

Section 3 Business Certification
..............................................................................
13

Resident Owned-Business Contracting
..................................................................\...
14

Contracting with Section 3 Business Concerns
........................................................... 15

Section 3 Recruitment, Training, and Employment
...................................................... 16

Employment of Section 3 Program Participants
.......................................................... 17

Contractor Requirements in Employing Section 3 Participants
....................................... 18-19

Internal Complaint Procedure
.................................................................................
20

Definitions
..........................................................................................................
21-23

Section 3 Contract Clause
.....................................................................................
24

**Exhibits/Forms**

Exhibit 1: Certification for Business Concerns Seeking Section 3
Preference

Exhibit 2: Certification of Residents Seeking Preference in Training and
Employment

Exhibit 3: Contracting Policy & Procedure

Exhibit 4: Special Conditions

### 

### General Policy Statement

It is the policy of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ to
require its contractors to provide equal employment opportunity to all
employees and applicants for employment without regard to race, color,
religion, sex, national origin, disability, veteran's or marital status,
or economic status and to take affirmative action to ensure that both
job applicants and existing employees are given fair and equal
treatment.

The Housing Authority of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
implements this policy through the awarding of contracts to contractors,
vendors, and suppliers, to create employment and business opportunities
for residents of the \_\_\_\_\_\_ and other qualified low- and very

low-income persons residing:

The policy shall result in a reasonable level of success in the
recruitment, employment, and utilization of \_\_\_\_\_\_\_\_residents
and other eligible persons and business by \_\_\_\_\_\_\_\_ contractors
working on contracts partially or wholly funded with the United States
Department of Housing and Urban Development (HUD) monies. The
\_\_\_\_\_\_\_\_ shall examine and consider a contractor's or vendor's
potential for success by providing employment and business opportunities
to \_\_\_\_\_\_\_\_ residents prior to acting on any proposed contract
award.

### Section 3 Purpose

Section 3 of the Housing and Urban Development Act of 1968, as amended
(12 U.S.C. 1701u) (Section 3) requires the \_\_\_\_\_\_\_\_ Housing
Authority or City of \_\_\_\_\_\_\_\_\_\_ to ensure that employment and
other economic and business opportunities generated by the Department of
Housing and Urban Development (HUD) financial assistance, to the
greatest extent feasible, are directed to public housing residents and
other low-income persons, particularly recipients of government housing
assistance, and business concerns that provide economic opportunities to
low- and very-low income persons.

### Section 3 Contracting Policy and Procedure

The \_\_\_\_\_\_\_\_ will incorporate Section 3 in its existing
Procurement Policy and adopt a Section 3 Contracting Policy and
Procedure to be included in all procurements generated for use with HUD
funding. This policy and procedure contains goal requirements for
awarding contracts to Section 3 Business Concerns.

All contractors/businesses seeking Section 3 preference must before
submitting bids/proposals to the \_\_\_\_\_\_\_\_ be required to
complete certifications, as appropriate, as acknowledgement of the
Section 3 contracting and employment provisions required by this
section. Such certifications shall be adequately supported with
appropriate documentation as referenced in the form.

The existing Procurement Policy also contains goal requirements for
awarding contracts to Small Disadvantaged Businesses, formerly Minority
and Women Business Enterprises (M/WBE).

### Section 3 Plan

The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, in
conjunction with the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, will
develop a Section 3 Action Plan to identify the goals, objectives, and
actions that will be implemented to ensure compliance with the
requirements of Section 3.

\_\_\_\_\_\_\_\_\_\_\_ intent to develop this plan is to include input
from various city departments to include and, as well as HUD. Where
applicable, input from other agencies and companies will be included.

### Section 3 Employment & Training Goals

It is the policy of the \_\_\_\_\_\_\_\_ to utilize residents and other
Section 3 eligible persons and businesses in contracts partially or
wholly funded with monies from the Department of Housing and Urban
Development (HUD). \_\_\_\_\_\_\_\_ has established employment and
training goals that contractors and subcontractors should meet in order
to comply with Section 3 requirements. (Reference 24 CFR 135.30 --
Numerical goal for meeting the greatest extent feasible requirement).
The numerical goal is:

-   Thirty percent (30%) of the aggregate number of new hires in any
    fiscal year.

It is the responsibility of contractors, vendors and suppliers to
implement progressive efforts to attain Section 3 compliance. Any
contractor that does not meet the Section 3 numerical goals must
demonstrate why meeting the goals were not feasible. All contractors
submitting bids or proposals to the \_\_\_\_\_\_\_\_ are required to
certify that they comply with the requirements of

Section 3.

The Section 3 Contract Clause specifies the requirements for contractors
hired for Section 3 covered projects. The Section 3 Clause must be
included in all Section 3 covered projects. The Section 3 Contract
Clause is included in Exhibit 3.

### Section 3 Program Participant Certification Procedure

The \_\_\_\_\_\_\_\_ will certify Section 3 program participants who
reside in the City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and who are
seeking preference in training and employment by completing and
attaching adequate proof of Section 3 eligibility, as required (see
Exhibit 3 -- Section 3 Participant Eligibility for Preference form).

-   All persons living in the City who meet the Section 3 eligibility
    guidelines can, by appointment, visit with the Section 3 Coordinator
    to complete a job readiness assessment.

-   Once this assessment is complete, the Section 3 Coordinator will
    determine if the individual meets the eligibility requirements and
    is job ready.

-   If the individual is deemed eligible for Section 3 participation and
    deemed not ready for employment, a referral will be made to other
    agencies that are better equipped to address the individual's needs,
    i.e., substance abuse providers, etc.

-   The Section 3 job readiness component is a part of the
    \_\_\_\_\_\_\_\_ commitment to provide economic opportunities and
    training to residents/eligible participants to become gainfully
    employed.

#### Resident Hiring Requirements

The \_\_\_\_\_\_\_\_ has adopted the following scale for resident hiring
that is to be used on all construction contracts, service contracts and
professional service contracts that contain a labor component. It is
expected that an appropriate number of residents with particular
qualifications or a willingness to begin unskilled labor will be able to
participate in \_\_\_\_\_\_\_\_ contracted labor efforts. A prime
contractor may satisfy \_\_\_\_\_\_\_\_ resident hiring requirements
through its subcontractors.

+-----------------------------------+-----------------------------------+
| **TOTAL LABOR DOLLARS**           | **RESIDENT AS A % OF TOTAL        |
|                                   | LABOR**                           |
| **USE TOTAL CONTRACT**            |                                   |
|                                   | #### DOLLARS                      |
| **AMOUNT FOR SERVICE CONTRACTS**  |                                   |
+-----------------------------------+-----------------------------------+
| Labor dollars \$25,000 but less   | 10% of the labor dollars          |
| than \$100,000                    |                                   |
+-----------------------------------+-----------------------------------+
| \$100,000, but less than          | 9% of the labor dollars           |
| \$200,000                         |                                   |
+-----------------------------------+-----------------------------------+
| At least \$200,000, but less than | 8% of the labor dollars           |
| \$300,000                         |                                   |
+-----------------------------------+-----------------------------------+
| At least \$300,000, but less than | 7% of the labor dollars           |
| \$400,000                         |                                   |
+-----------------------------------+-----------------------------------+
| At least \$400,000, but less than | 6% of the labor dollars           |
| \$500,000                         |                                   |
+-----------------------------------+-----------------------------------+
| At least \$500,000, but less than | 5% of the labor dollars           |
| \$1 million                       |                                   |
+-----------------------------------+-----------------------------------+
| At least \$1 million, but less    | 4% of the labor dollars           |
| than \$2 million                  |                                   |
+-----------------------------------+-----------------------------------+
| At least \$2 million, but less    | 3% of the labor dollars           |
| than \$4 million                  |                                   |
+-----------------------------------+-----------------------------------+
| At least \$4 million, but less    | 2% of the labor dollars           |
| than \$7 million                  |                                   |
+-----------------------------------+-----------------------------------+
| \$7 million or more               | 1 -- ½% of the labor dollars      |
+-----------------------------------+-----------------------------------+

With this sliding formula, it is expected that an appropriate number of
\_\_\_\_\_\_\_\_ public housing residents and neighborhood residents
with particular qualifications or willingness to begin unskilled labor
will be able to participate in contracted labor efforts. A prime
contractor, through its subcontractor(s), may satisfy \_\_\_\_\_\_\_\_
resident hiring requirement set forth above.

1.  Subcontract or joint venture with a resident owned business. The
    business must be 51% of more owned by
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
    public housing residents, or subcontract/joint venture with a
    business that employs full-time, 30% or more
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ or
    low and very-income individuals within the
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ City of
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, or

2.  Direct hiring of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Housing
    Authority's \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> \_\_\_\_\_\_\_\_\_\_\_\_\_ public housing residents and/or low and
> very low-income neighborhood residents based on the Resident Hiring
> Scale, or

3.  Contractor incurs the cost of providing skilled training for
    residents in an amount commensurate with the sliding scale set forth
    in the Resident Hiring Scale, or

4.  Contractor makes a contribution to \_\_\_\_\_\_\_ Education Fund to
    provide assistance to residents to obtain training. The level of
    contribution would be commensurate with the sliding scale set forth
    in the Resident Hiring Scale.

### Assisting Contractors to Achieve Section 3 Goal Hiring and Contracting Goals

The \_\_\_\_\_\_\_\_ will assist contractors with little or no
experience in achieving Section 3 hiring and contracting goals by:

Requiring the contractor to present a list, to the Section 3
Coordinator, of the number of subcontracting and/or employment
opportunities expected to be generated from the initial contract.

\_\_\_\_\_\_\_\_ Section 3 Coordinator will provide the contractor with
a list of interested and qualified Section 3 residents for construction
projects.

\_\_\_\_\_\_\_\_ Section 3 Coordinator will provide contractor with a
list of Section 3 business concerns interested and qualified for
construction projects.

\_\_\_\_\_\_\_\_ Section 3 Coordinator will inform contractor of known
issues that might affect Section 3 residents from performing job related
duties.

\_\_\_\_\_\_\_\_ Section 3 Coordinator will review the new hire clause
with contractors and subcontractors to ensure that the requirement is
understood. It is not intended for contractors and subcontractors to
terminate existing employees, but to make every effort feasible to
employ Section 3 program participants before any other person, when
hiring additional employees needed to complete proposed work to be
performed with HUD (federal) funds.

**[Preference for Contracting with Section 3 Business
Concerns]{.underline}**

The \_\_\_\_\_\_\_\_, in compliance with Section 3 regulations, will
require contractors and subcontractors (including professional service
contractors) to direct their efforts towards contracts to Section 3
business concerns in the following order to priority:

-   **Category 1:** Business concerns that are 51% of more owned by
    residents of the housing development for which the work is
    performed, or whose full-time, permanent workforce includes 30% of
    these persons as employees.

-   **Category 2:** Business concerns that are 51% of more owned by
    residents of the Authority's public housing development(s) other
    than the housing development where the work is to be performed; or
    whose full-time permanent workforce includes 30% of these persons as
    employees.

-   **Category 3:** HUD Youthbuild programs being carried out in the
    city of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ in which Section 3
    covered assistance is expended.

-   **Category 4:** Business concerns that are 51% or more owned by a
    Section 3 resident(s), or whose permanent, full-time workforce
    includes no less than 30% Section 3 residents (category 4 business);
    or that subcontract in excess of 25% of the total amount of
    subcontracts to Section 3 business concerns.

Contractors and subcontractors are expected to extend to the greatest
extent feasible, efforts to achieve the numerical goals established by
the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

### Evidence of Section 3 Certification

Any business seeking Section 3 preference in the awarding of contracts
or purchase agreements with the \_\_\_\_\_\_\_\_ shall complete the
Certification For Business Concerns Seeking Section 3 Preference In
Contracting and Demonstration of Capability form, which can be obtained
from the \_\_\_\_\_\_\_\_ Section 3 Coordinator. The business seeking
Section 3 preference must be able to provide adequate documentation as
evidence of eligibility for preference under the Section 3 Program.

Certifications for Section 3 preference for business concerns must be
submitted to the Section 3 Coordinator of the \_\_\_\_\_\_\_\_ prior to
the submission of bids for approval. If the Section 3 Coordinator
previously approved the business concern to be Section 3 certified, then
the certification can be submitted along with the bid.

### Resident Owned Business Contracting

\_\_\_\_\_\_\_\_ will consider utilizing the alternative procurement
process (Section 24 CFR Part 963) when contracting with businesses owned
in substantial part by housing agency residents (resident-owned
business) for public housing services, supplies or construction.

To be eligible for the alternative procurement process, a business must
submit evidence to \_\_\_\_\_\_\_\_ that shows how each of the following
requirements have been met:

-   Submit certified copies of any city, state, or county municipal
    licenses that support the type of business activity for which it
    performs.

-   Disclose to the Section 3 Coordinator, all owners of the business,
    as well as, each owners percentage of ownership and names of those
    individuals who posses the authority to make decisions on a
    day-to-day basis.

-   Submit evidence that the business is able to perform successfully
    under the terms and conditions of the proposed contract.

-   Provide a certified listing of all contracts awarded and received
    under the alternative procurement process within a two-year period.
    If a resident-owned business has received under this alternative
    contracting procedure one or more contracts (within the two-year
    period) with total combined dollars of \$1,000,000, then it is no
    longer eligible for additional contracts under the alternative
    process until the 2-year period is past.

This alternative procurement policy is based upon the procurement
procedure and policy set forth in HUD's regulations at 24 CFR, Part
85.36, but applies only to solicitations of resident-owned businesses.
SPHA will utilize the alternative contracting procedure for
resident-owned businesses only in cases where it is considered to be in
the best businesses, economic and service interests of the authority.

### Efforts to Award Contract Opportunities to Section 3 Business Concerns

The \_\_\_\_\_\_\_\_ will use the following methods to notify and
contract with Section 3 business concerns when contracting opportunities
exist.

-   Advertise contracting opportunities via newspaper, mailings, posting
    notices that provide general information about the work to be
    contracted and where to obtain additional information.

-   Provide written notice of contracting opportunities to all known
    Section 3 business concerns. The written notice will be provided in
    sufficient time to enable business concerns the opportunity to
    respond to the bid invitation.

-   Coordinate pre-bid meetings at which the Section 3 business concerns
    would be informed of upcoming contracting opportunities in advance.

-   Conduct workshops on \_\_\_\_\_\_\_\_ contracting procedures to
    include bonding, insurance, and other pertinent requirements, in a
    timely manner in an effort to allow Section 3 business concerns the
    opportunity to take advantage of any upcoming contracting
    opportunities.

-   Contact the City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
    Business Development Department, business assistance agencies,
    Minority and Women's Business Enterprise (M/WBE) contractor
    associations and community organizations to inform them of
    contracting opportunities and to request their assistance in
    identifying Section 3 businesses.

-   Establish relationships with the Small Business Administration
    (SBA), Minority and Women's Business Enterprise M/WBE association,
    Community Development Corporations, and other sources as necessary
    to assist SPHA with educating and mentoring residents with a desire
    to start their own businesses.

-   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.

-   Develop resources or seek out training to assist residents
    interested in starting their own businesses to learn to prepare
    contracts, prepare taxes, obtain licenses, bonding, and insurance.

**[Section 3 Residents Recruitment, Training, and Employment
Goals]{.underline}**

\_\_\_\_\_\_\_\_ will develop resources to provide training and
employment opportunities to Section 3 program participants by
implementing the following:

-   Training opportunities will be advertised by distributing flyers via
    mass mailings and posting in common areas of the housing
    developments as well as all \_\_\_\_\_\_\_\_ public housing
    management offices.

-   The resident councils, resident management corporations, as well as
    neighborhood community organizations will be contacted to request
    their assistance in notifying residents of the available training
    and employment opportunities.

-   Employment opportunities will be advertised by posting job vacancies
    in common areas of all of the \_\_\_\_\_\_\_\_ housing developments
    as well as contacting resident councils, resident management
    corporations, and neighborhood community organizations.

-   A database will be developed of certified Section residents of
    public housing and other Section 3 residents.

-   A database will be developed to maintain a skill assessment of all
    Section 3 residents of public housing and other Section 3 residents.

-   A database will be developed of eligible qualified Section 3
    Business concerns to contact with respect to the availability of
    contract opportunities.

-   Relationships will be developed with local area employers in an
    effort to solicit job vacancies to determine skills needed in their
    workforce, thereby providing training to residents developing skills
    that will transfer into the external labor market.

-   A provision for a specific number of public housing or Section 3
    program participants to be trained or employed by the contractor
    will be incorporated into the contract.

### Employment of Section 3 Program Participants

-   The Section 3 Coordinator will conduct a pre-interview with all
    residents prior to being hired by a contractor.

-   The pre-interview will assess job readiness (i.e., childcare,
    transportation, work maturity, job retention skills). Only residents
    meeting the minimum qualifications of the contractor or
    subcontractor will be referred to the job site. Residents not deemed
    job ready would be referred elsewhere. It is imperative that the
    resident's basic needs are met prior to employment.

-   If a resident is referred to a contractor and does not perform
    satisfactorily due to poor work habits (i.e., tardiness,
    absenteeism, alcohol/drugs, abusive language, fighting, etc.) she/he
    will be allowed two additional opportunities to be referred to other
    contractors. If after that time the resident still does not perform
    satisfactorily, it will be mandatory that she/he attend and complete
    a job readiness class, alcohol/drug treatment center, or any other
    program that he or she may be required to attend. After successful
    completion the resident will be given the opportunity to be
    reinstated on the list of residents available for work.

-   Residents experiencing problems with contractors should first
    communicate the problem to the employer. If the problem cannot be
    solved between the employee and employer, the Section 3 Coordinator
    will meet with the parties involved to assist in trying to resolve
    the problem. Residents and employers (contractors or subcontractors)
    should document problems whenever they occur and record any and all
    efforts to correct them. The written documentation of the problem
    should be submitted to the Section 3 Coordinator.

-   In order to qualify for employment with contractors, public housing
    residents must have their name(s) on a \_\_\_\_\_\_\_\_ lease, be
    current on rent, be at least eighteen years of age, and not be
    involved in any legal action with \_\_\_\_\_\_\_\_ (current
    documented eviction, criminal and drug activity or trespassing).

-   Residents not interested in construction employment opportunities
    will be assessed for other skills (clerical, administrative, etc.)
    and will have the opportunity to receive help with interviewing
    techniques, mock interviews, resume preparation, application
    assistance, employment leads, and how to dress for success when
    conducting a job search.

-   Residents interested in pursuing General Equivalency Diploma (GED)
    and continued training education will be referred to those resources
    by the Section 3 Coordinator who will maintain bi-weekly contact
    with residents to monitor progress.

**[Contractor's Requirements in Employing Section 3
participants:]{.underline}**

Under the \_\_\_\_\_\_\_\_ Section 3 Program, contractors and
subcontractors are required to:

-   Provide employment opportunities to Section 3 residents/participants
    in the priority order listed below:

-   a.  **Category 1 -- Section 3 Resident**

> Residents of the housing development or developments for which the
> contract shall be expended.
>
> **b) Category 2 -- Section 3 Resident**
>
> Residents of other housing developments managed by the housing
> authority of the City of \_\_\_\_\_\_\_\_.

c)  **Category 3 -- Section 3 Resident**

> Participants in HUD Youthbuild program being carried out in the
> project boundary area.

d)  **Category 4 -- Section 3 Resident**

> Residents of Section 8 of the \_\_\_\_\_\_\_\_ Housing Authority as
> well as all other residents residing in the City of \_\_
> \_\_\_\_\_\_\_\_ who meet the income guidelines for Section 3
> preference (refer to Section 3 Income Limits).

-   After the award of contracts, the contractor must, prior to
    beginning work, inform Section 3 participants of the development at
    which the work will be performed, by providing the following:

-   names of the Section 3 business concerns to be utilized,

-   estimates of the number of employees to be utilized for contract,

-   projected number of available positions, to include job descriptions
    and wage rates (construction wages consistent with Davis Bacon),

-   efforts that will be utilized to seek Section 3 participants. (See
    Exhibit 2)

-   Contractors must notify the Section 3 Coordinator of their interests
    regarding employment of Section 3 participants prior to hiring. The
    Section 3 Coordinator will ensure that the participant is Section 3
    eligible, by assessing the Section 3 database to ensure job
    readiness. Additionally, the legal department will be contacted to
    ensure that the individuals are not involved in any legal
    proceedings against/with the \_\_\_\_\_\_\_\_.

-   Submit a list of core employees (including administrative, clerical,
    planning and other positions pertinent to the construction trades)
    at the time of contact award.

-   Document the performance of Section 3 participants (positive and
    negative), regarding punctuality, attendance, etc., and provide this
    information to the \_\_\_\_\_\_\_\_ Section 3 Coordinator.

-   Immediately notify the Section 3 Coordinator of any problems
    experienced due to the employment of Section 3 participants.

-   Immediately notify the Section 3 Coordinator if a participant quits,
    walks off, or is terminated for any reason. The contractor must
    provide written documentation of all such incidents to support such
    decisions to the Section 3 Coordinator to determine if an
    investigation is warranted.

**[Internal Section 3 Complaint Procedure]{.underline}**

In an effort to resolve complaints generated due to non-compliance
through an internal process, \_\_\_\_\_\_\_\_ encourages submittal of
such complaints to its Section 3 Coordinator as follows:

-   Complaints of non-compliance should be filed in writing and must
    contain the name of the complainant and brief description of the
    alleged violation of 24 CFR 135.

-   Complaints must be filed within thirty (30) calendar days after the
    complainant becomes aware of the alleged violation.

-   An investigation will be conducted if complaint is found to be
    valid. The Section 3 Coordinator will conduct an informal, but
    thorough investigation affording all interested parties, if any, an
    opportunity to submit testimony and/or evidence pertinent to the
    complaint.

-   The Section 3 Coordinator will provide written documentation
    detailing the findings of the investigation of the
    \_\_\_\_\_\_\_\_\_\_. The \_\_\_\_\_\_\_\_\_\_ will review the
    findings for accuracy and completeness before it is released to
    complainants. The findings will be made available no later then
    thirty (30) days after the filing of complaint.

If complainants wish to have their concerns considered outside of the
\_\_\_\_\_\_\_\_ a complaint may be filed with:

Assistant Secretary for Fair Housing and Equal Opportunity

United States Department of Housing and Urban Development

451 Seventh Street, SW

Washington, DC 20410

The complaint must be received not later than 180 days from the date of
the action or omission upon which the complaint is based, unless the
time for filing is extended by the Assistant Secretary for good cause
shown.

**[Definitions]{.underline}**

**[Applicant]{.underline}** -- Any entity which makes an application for
Section 3 covered assistance, and includes, but is not limited to, any
State, unit of local government, public housing agency 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.

**[Assistant]{.underline}** -- the Assistant Secretary for Fair Housing
and Equal Opportunity.

**[Business Concern]{.underline}** -- a business entity formed in
accordance with State law, and which is licensed under State, county or
municipal law to engage in the type of business activity for which it
was formed.

**[Contractor]{.underline}** - any entity which contracts to perform
work generated the expenditure of Section 3 covered assistance, or for
work in connection with a Section 3 covered project.

**[Employment Opportunities Generated by Section 3 Covered
Assistance]{.underline}** -- all employment opportunities generated by
the expenditure of Section 3 covered public assistance (i.e., operating
assistance, development assistance and modernization assistance, (as
described in Section 135.3 (a) (1)). With respect to Section 3 covered
housing and community development assistance, this term means all
employment opportunities arising in connection with Section 3 covered
projects (as described in Section 135.3 (a) (2)), including management
and administrative jobs. 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.

**[Housing Authority]{.underline}** (HA) -- Public Housing Agency.

**[Housing Development]{.underline}** -- low-income housing owned,
developed, or operated by public housing agencies in accordance with
HUD's public housing program regulations codified in 24 CFR Chapter IX.

**[HUD Youthbuild Programs]{.underline}** -- 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. 12899), 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.

**[JTPA]{.underline}** -- The Job Training Partnership Act (29 U.S.C.
1579 (a)).

**[Low-income person]{.underline}** -- families (including single
persons) whose incomes do not exceed 80 per centum of the median income
for the area, as determined by the Secretary, with adjustments for
smaller and larger families, except that the Secretary may establish
income ceilings higher or lower than 80 per centum of the median for the
area on the basis of the Secretary's findings that such variations are
necessary because of prevailing levels of construction costs or
unusually high or low-income families.

**[Metropolitan Area]{.underline}** -- a metropolitan statistical area
(MSA), as established by the Office of Management and Budget.

**[New Hires]{.underline}** -- full-time employees for permanent,
temporary or seasonal employment opportunities.

**[Recipient]{.underline}** -- 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. Recipient also includes any successor, assignee
or transferee of any such entity, but does not include any ultimate
beneficiary under the HUD program to which Section 3 applies and does
not include contractors.

**[Section 3]{.underline}** -- Section 3 of the Housing and Urban
Development Act of 1968, as amended (12 U.S.C. 1701u).

**[Section 3 Business Concern]{.underline}** -- a business concern,

1.  That is 51 percent or more owned by Section 3 resident: 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 subcontractors to be awarded
    to business concerns that meet the qualifications set forth in
    paragraphs 1 or 2 above.

**[Section 3 Covered Assistance]{.underline}** --

1)  public housing development assistance provided pursuant to Section 5
    of the 1937 Act;

2)  public housing operating assistance provided pursuant to Section 9
    of the 1937 Act;

3)  public housing modernization assistance provided pursuant to Section
    14 of the 1937 Act;

4)  assistance provided under any HUD housing or community development
    program that is expended for work arising in connection with housing
    rehabilitation, construction, or other public construction project
    (which includes other buildings or improvements, regardless of
    ownership).

**[Section 3 Clause]{.underline}** -- the contract provisions set forth
in Section 135.38.

**[Section 3 Covered Contracts]{.underline}** -- 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.

Section 3 covered contracts do not include contracts awarded under HUD's
procurement program, which are governed by the Federal Acquisition
Regulation (FAR). Section 3 covered contracts also do not include
contracts for the purchase of supplies and materials. However, whenever
a contract for materials includes the installation of the materials, the
contract constitutes a Section 3 covered contract.

**[Section 3 Covered Project]{.underline}** - 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.

**[Section 3 Resident]{.underline}** -- a public housing resident or an
individual who resides in the metropolitan area or nonmetropolitan
county in which the Section 3 covered assistance is expended and who is
considered to be a low-to very low-income person.

**[Subcontractor]{.underline}** -- 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.

**[Very low-income person]{.underline}** -- families (including single
persons) whose income do not exceed 50 per centum of the median family
income for the area, as determined by the Secretary with adjustments for
smaller and larger families, except that the Secretary may establish
income ceilings higher or lower then 50 per centum of the median for the
area on the basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes.

**[Section 3 Clause]{.underline}**

All Section 3 covered contracts shall included the following clause
(referred to as the Section 3 Clause):

A. The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3
is to ensure that employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by Section 3, shall,
to the greatest extent feasible, be directed to low- and very low-income
persons, particularly persons who are recipients of HUD assistance for
housing.

B. The parties to this contract agree to comply with HUD's regulations
in 24 CFR part 135, which implement Section 3. As evidenced by their
execution of this contract, the parties to this contract certify that
they are under no contractual or other impediment that would prevent
them from complying with the part 135 regulations.

C. The contractor agrees to send to each labor organization or
representative or workers with which the contractor has a collective
bargaining agreement or other understanding, if any, a notice advising
the labor organization or workers' representative of the contractor's
commitments under this Section 3 clause, and will post copies of the
notice in conspicuous places at the work site where both employees and
applicants for training and employment positions can see the notice. The
notice shall describe the Section 3 preference, shall set forth minimum
number and job titles subject to hire, availability of apprenticeship
and training positions, the qualifications for each; and the name and
location of the person(s) taking applications for each of the positions;
and the anticipated date the work shall begin.

D. The contractor agrees to include this Section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part 135,
and agrees to take appropriate action, as provided in an applicable
provision of the subcontract or in this Section 3 clause, upon a finding
that the subcontractor is in violation of the regulations in 24 CFR part
135. The contractor will not subcontract with any subcontractor where
the contractor has notice or knowledge that the subcontractor has been
found in violation of the regulations in 24 CFR part 135.

E. The contractor will certify that any vacant employment positions,
including training positions, that are filled (1) after the contractor
is selected but before the contract is executed, and (2) with persons
other than those to whom the regulations of 24 CFR part 135 require
employment opportunities to be directed, were not filled to circumvent
the contractor's obligations under 24 CFR part 135.

F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in
sanctions, termination of this contract for default, and debarment or
suspension from future HUD assisted contracts.

G. With respect to work performed in connection with Section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination
and Education Assistance Act

(25 U.S.C. 450e) also applies to the work to be performed under this
contract. Section 7(b) requires that to the greatest extent feasible (i)
preference and opportunities for training and employment shall be given
to Indians, and (ii) preference in the award of contracts and
subcontracts shall be given to Indian organizations and Indian-owned
Economic Enterprises. Parties to this contract that are subject to the
provisions of Section 3 to the maximum extent feasible, but not in
derogation of compliance with section 7(b).

**Exhibit 1**

**CERTIFICATION FOR BUSINESS CONCERNS SEEKING SECTION 3**

**PREFERENCE IN CONTRACTING AND DEMONSTRATION OF CAPBILITY**

Name of Business
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address of Business
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Type of Business:  Corporation  Partnership

 Sole Proprietorship  Joint Venture

Attached is the following documentation as evidence of status:

**For Business claiming status as a Section 3 resident-owned
enterprise:**

 Copy of resident lease  Copy of receipt of public assistance

 Copy of evidence of participation  Other evidence

in a public assistance program

**For business entity as applicable:**

 Copy of Articles of Incorporation  Certificate of Good Standing

 Assumed Business Name Certificate  Partnership Agreement

 List of owners/stockholders and  Corporation Annual Report

\% ownership of each  Latest Board minutes appointing officers

 Organization chart with names and titles  Additional documentation

and brief function statement

**For business claiming Section 3 status by subcontracting 25 percent of
the dollar awarded to qualified Section 3 business:**

 List of subcontracted Section 3 business(es) and subcontract amount

**For business claiming Section 3 status, claiming at least 30 percent
of their workforce are currently Section 3 residents or were Section 3
eligible residents within 3 years of date of first employment with the
business:**

 List of all current full-time employees  List of employees claiming
Section 3 status

 PHA/IHA Residential lease less than 3  Other evidence of Section 3
status less than 3

years from day of employment years from date of employment

Evidence of ability to perform successfully under the terms and
conditions of the proposed contract:

-   Current financial statement

-   Statement of ability to comply with public policy

-   List of owned equipment

-   List of all contracts for the past two years

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(Corporate Seal)

Authorizing Name and Signature

Attested
by:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Exhibit 2**

**THE HOUSING**

**AUTHORITY or City**

**of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**RESIDENT EMPLOYMENT OPPORTUNITY DATA**

**THE HOUSING AUTHORITY OR CITY**

**OF THE**

**CITY OF \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**ELIGIBILITY FOR PREFERENCE**

#### Eligibility for Preference

A section 3 resident seeking the preference in training and employment
provided by this part shall certify, or submit evidence to the recipient
contractor or subcontractor, if requested, that the person is a Section
3 resident, as defined in Section 135.5. (An example of evidence of
eligibility for the preference is evidence of receipt of public
assistance, or evidence of participation in a public assistance
program.)

##### Certification for Resident Seeking Section 3 Preference in Training and

###### Employment

I,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
am a legal resident of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
and meet the income eligibility guidelines for a low- or very-low-income
person as published on the reverse.

My permanent address is:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I have attached the following documentation as evidence of my status:

 Copy of lease  Copy of receipt of public

assistance

 Copy of Evidence of participation  Other evidence

in a public assistance program.

Signature

Print Name Date

**Exhibit 2**

**THE HOUSING**

**AUTHORITY**

**of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

+----------------------+----------------------+------------------------+
| ####### SEC          |                      |                        |
| TION 3 INCOME LIMITS |                      |                        |
|                      |                      |                        |
| All residents of     |                      |                        |
| public housing       |                      |                        |
| developments of the  |                      |                        |
| \_\_\_\_\_\_\_\_\_\_ |                      |                        |
| Housing Authority    |                      |                        |
| qualify as Section 3 |                      |                        |
| residents.           |                      |                        |
| Additionally,        |                      |                        |
| individuals residing |                      |                        |
| in the               |                      |                        |
| \_\_\_\_\_\_\_\_\_\_ |                      |                        |
| \_\_\_\_\_\_\_\_\_\_ |                      |                        |
| City of              |                      |                        |
| \_\_\_\_             |                      |                        |
| \_\_\_\_\_\_\_\_\_\_ |                      |                        |
|                      |                      |                        |
| Who meet the income  |                      |                        |
| limits set forth     |                      |                        |
| below, can also      |                      |                        |
| qualify for Section  |                      |                        |
| 3 status.            |                      |                        |
|                      |                      |                        |
| A picture            |                      |                        |
| identification card  |                      |                        |
| and proof of current |                      |                        |
| residency is         |                      |                        |
| required.            |                      |                        |
+----------------------+----------------------+------------------------+
| **Eligibility        |                      |                        |
| Guideline**          |                      |                        |
+----------------------+----------------------+------------------------+
| **Number in          | **Very Low Income**  | **Low Income**         |
| Household**          |                      |                        |
+----------------------+----------------------+------------------------+
| 1 individual         |                      |                        |
+----------------------+----------------------+------------------------+
| 2 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 3 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 4 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 5 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 6 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 7 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
| 8 individuals        |                      |                        |
+----------------------+----------------------+------------------------+
|                      |                      |                        |
+----------------------+----------------------+------------------------+

Current as of 1/03

######## Exhibit 3

SECTION 3 CONTRACTING

POLICY AND PROCEDURE

######### INTRODUCTION

It is the mission of the Housing Authority or City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ to provide a variety of safe,
sanitary, accessible, decent, and affordable housing to the citizens of
the City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ while
enhancing and promoting resident self sufficiency.

The purpose of Section 3 of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701u) (Section 3) is to ensure that employment and
other economic opportunities generated by certain HUD financial
assistance shall, to the greatest extend feasible, and consistent with
existing Federal State, and local laws and regulations, be directed to
low and very-low income individuals, especially recipients of government
assistance for housing, and to business concerns which provide economic
opportunities to low and very-low income individuals. (Section 3 means
section 3 of the Housing and Urban Development Act of 1968, as amended
12 U.S.C. 1701u).

Section 3 requirements apply to all contractors and subcontractors
performing work in connection with projects and activities funded by
public housing assistance covered by Section 3, regardless of the amount
of the contract or subcontract. Section 3 covered contracts do not
include contracts for the purchase of supplies and materials unless the
contract includes the installation of the materials.

A business concern seeking to qualify for a Section 3 contracting
preference shall certify or submit evidence that the business concern
qualifies as a Section 3-business concern. (Refer to What Is A Section 3
Business Concern?). The Section 3 business must also be able to
demonstrate its ability to complete the contract. 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).

Contractors who do not qualify as Section 3 business concerns, but who
enter into contracts with the Housing Authority or the City of
\_\_\_\_\_\_\_\_\_\_\_\_, must agree to comply with certain general
conditions (refer to Section 3 Clause). All contractors and
subcontractors, including Section 3 businesses, must comply with these
general conditions. Included in these conditions is the requirement that
each contractor and subcontractor submit with each pay request a report
of Section 3 compliance (refer to Section 3 Compliance Report). Failure
to comply with these general conditions may lead to sanctions which can
include termination of the contract for default and suspension or
debarment from future HUD-assisted contracts (refer to Sanctions for
Contractor's Noncompliance).

Please direct any questions you may have regarding this information to:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Contract Administrator

Housing Authority or City of the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

######### WHAT IS A SECTION 3 BUSINESS CONCERN?

#### A Section 3 Business Concern is a business concern, as defined in this section---

1.  That is fifty-one percent (51%) or more owned by Section 3
    residents; or

2.  Whose permanent, full-time employees include persons, at least
    thirty percent (30%0 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
    twenty-five percent (25%) of the dollar award of all subcontracts to
    be awarded to business concerns that meet the qualifications set
    forth in items (1) or (2) above.

#### Note: A business concern seeking to qualify for Section 3 shall certify and submit evidence that the business meets one of the guidelines stated above. (Refer to Certification for Business Concerns Seeking Section 3 Preference in Contracting and Demonstration of Capability Form -- Exhibit 1)

######### WHO IS A SECTION 3 RESIDENT?

**For purposes of the Housing Authority or the City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, a Section 3 resident is:**

1.  A public housing resident;

2.  An individual who lives with the
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ City of
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_ and whose income falls within the
    guidelines for low- or very low income.

**ORDER OF PROVIDING PREFERENCE**

**SECTION 3 BUSINESS CONCERN**

When considering the award of contracts to business concerns, and more
than one Section 3 business concern is being considered, to the greatest
extent possible, awards shall be made in the following order of
priority:

1.  A Section 3 business concern that is fifty-one percent (51%) or more
    owned by resident(s) of the public housing development in which the
    work is directed, or whose full-time, permanent employees include at
    least thirty percent (30%) of the residents of the public housing
    development in which the work is directed:

2.  A Section 3 business that is majority owned by resident(s) of other
    developments owned by The Housing Authority or the City of
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, but not the housing
    development in which the work is directed, or whose full-time,
    permanent employees include at least thirty percent (30%) residents
    of other developments owned by The Housing Authority or the City of
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ but not the housing
    development in which the work is directed;

3.  HUD Youthbuild programs that are being carried out in the City in
    which the Section 3 covered assistance is expended.

4.  A Section 3 business concern that is majority owned by a Section 3
    resident who is not a public housing resident or whose permanent,
    full-time workforce includes no less than thirty percent (30%)
    Section 3 residents who are not public housing residents, or that
    subcontract in excess of twenty-five percent (25%) of the total
    amount of subcontracts to Section 3 business concerns.

**Note: A Section 3 business concern seeking any of the above
preferences shall submit evidence that it meets the guidelines of that
preference.**

**WHAT IF MY BUSINESS DOES NOT**

**QUALIFY AS A SECTION 3 BUSINESS?**

The Housing Authority will, [to the greatest extent
feasible]{.underline}, offer contracting opportunities to Section 3
business concerns. However, in the event no Section 3 business bids on a
contract, or bids but is not able to demonstrate to the Housing
Authority's satisfaction that it has the ability to perform successfully
under the terms and conditions of the proposed contract, then that
contract will be awarded to a non-Section 3 business concern that can
meet the terms and conditions of the proposed contract through the
competitive bidding process.

That business concern must meet, as all business must (including Section
3 businesses), the general conditions of compliance (refer to Section 3
Clause \[Construction Contracts\] and Section 3 Clause
\[Non-Construction Contracts\]).

This will include:

1.  Submitting a list of all positions necessary to complete contract,
    name of employees who will fill those positions, names of all other
    employees.

2.  Posting notices of any vacant positions, including training and/or
    apprenticeship positions, qualifications for positions, place where
    applications will be received and starting date of employment.

3.  [To the greatest extent possible]{.underline}, making available
    vacant positions, including training and/or apprenticeship
    positions, to Section 3 residents (all categories) in order to
    priority.

4.  As positions are vacated during completion of contract, following
    guidelines enumerated in

numbers 2 and 3 above.

5.  Submitting Compliance Reports as required.

6.  If notified of non-compliance, correcting non-compliance within
    allowable time period.

**ORDER OF PROVIDING PREFERENCE**

**EMPLOYMENT OF SECTION 3 RESIDENT**

When considering the employment of a Section 3 resident, the following
order of priority is followed as outlined in 24 CFR 135.32:

**1. Category 1 -- Section 3 Resident**

> Residents of the housing development or developments in which the
> contract shall be expended.

**2. Category 2 -- Section 3 Resident**

> Residents of other housing developments managed by the Housing
> Authority or the City of
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

**3. Category 3 -- Section 3 Resident**

Participants in HUD Youthbuild program being carried out.

**4. Category 4 -- Section 3 Resident**

All other residents (including Section 8 recipients) of the City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ who meet the income guidelines for Section
3 preference (refer to Section 3 Income Limits).

In all cases, applicants must meet the minimum qualifications for the
position. In no instance shall it be construed that preference is given
to Section 3 residents who do not meet these minimum qualifications.

**SECTION 3 INCOME LIMITS**

All residents of public housing developments of The Housing Authority or
the City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ qualify as Section 3
residents. Additionally, individuals residing within the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

and who meet the income limits set forth below, can also qualify for
Section 3 status.

  ----------------------- ----------------------- -----------------------
  **Number In Household** **Very Low Income**     **Low Income**

  1 individual                                    

  2 individuals                                   

  3 individuals                                   

  4 individuals                                   

  5 individuals                                   

  6 individuals                                   

  7 individuals                                   

  8 individuals                                   
  ----------------------- ----------------------- -----------------------

######## Exhibit 4

####### SECTION 3 SPECIAL CONDITIONS

The \_\_\_\_\_\_\_\_\_\_ has initiated efforts to enhance resident
hiring in specific procurement areas. These initiatives are designed to
set the requirements for resident hiring and developing and/or
strengthening administrative procedures for facilitating contractors'
hiring of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
residents, other low income and/or very low-income residents residing in
the City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

1.  **[Procurement Documents]{.underline}**

Each bidder/proposer must include a Section 3 Opportunities Plan or a
Schedule D which indicates its commitment to meet \_\_\_\_\_\_\_\_
resident hiring requirements.

If a bidder/proposer fails to submit a Section 3 Opportunities Plan or a
Schedule D and the related data along with the bid/proposal, such
bid/proposal will be declared as "non-responsive".

For invitations for Bids ("IFB") where awards are made to the lowest,
responsive and responsible bidder, the bidder's commitment to satisfy
\_\_\_\_\_\_\_\_ resident hiring requirements will be a factor used in
determining whether the bidder is "responsive".

For RFQ's, RFP's and IFB's, contractors shall be required to detail the
cost of the bid or proposal by separately categorizing contract cost by
labor (person hours and dollar amounts).

2.  **[Resident Hiring Requirements]{.underline}**

In view of \_\_\_\_\_\_\_\_ desire to provide
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
residents and neighborhood residents with employment opportunities, the
following scale for resident hiring will be utilized on all construction
contracts, service contracts, and professional service contracts
containing a "labor" component:

+-----------------------------------+----------------------------------+
| #### TOTAL LABOR DOLLARS          | **RESIDENT AS A % OF TOTAL       |
|                                   | LABOR**                          |
| **USE TOTAL CONTRACT**            |                                  |
|                                   | **DOLLARS**                      |
| **AMOUNT FOR SERVICE CONTRACTS**  |                                  |
+-----------------------------------+----------------------------------+
| At least \$25,000, but less than  | 10% of the labor dollars         |
| \$100,000                         |                                  |
+-----------------------------------+----------------------------------+
| \$100,000, but less than          | 9% of the labor dollars          |
| \$200,000                         |                                  |
+-----------------------------------+----------------------------------+
| At least \$200,000, but less than | 8% of the labor dollars          |
| \$300,000                         |                                  |
+-----------------------------------+----------------------------------+
| At least \$300,000, but less than | 7% of the labor dollars          |
| \$400,000                         |                                  |
+-----------------------------------+----------------------------------+
| At least \$400,000, but less than | 6% of the labor dollars          |
| \$500,000                         |                                  |
+-----------------------------------+----------------------------------+
| At least \$500,000, but less than | 5% of the labor dollars          |
| \$1 million                       |                                  |
+-----------------------------------+----------------------------------+
| At least 1 million, but less than | 4% of the labor dollars          |
| \$2 million                       |                                  |
+-----------------------------------+----------------------------------+
| At least 2 million, but less than | 3% of the labor dollars          |
| \$4 million                       |                                  |
+-----------------------------------+----------------------------------+
| At least \$4 million, but less    | 2% of the labor dollars          |
| than \$7 million                  |                                  |
+-----------------------------------+----------------------------------+
| \$7 million or more               | 1 -- 1/2% of the labor dollars   |
+-----------------------------------+----------------------------------+

With this sliding formula, it is expected that an appropriate number
\_\_\_\_\_\_\_\_ public housing residents and neighborhood residents
with particular qualifications or willingness to begin unskilled labor
will be able to participate in contracted labor efforts. A prime
contractor, through its subcontractor(s), may satisfy \_\_\_\_\_\_\_\_
resident hiring requirements set forth above.

**Exhibit 4**

3.  **[Enforcement]{.underline}**

    To enforce the decision-making process pertaining to determining
    applicable percentages for resident hiring, enforcement strategies
    are set forth below.

    During the post award or pre-bid conference, the objective shall be
    to impact critical Section 3 information to the contractor prior to
    commencement of the work/project. The following contract
    requirements shall be discussed in detail: (Non-construction
    contracts does not require Davis-Bacon)

    Davis-Bacon

    Minority and Women Owned Business Participation

    Resident Hiring Professional

    Each representative will define specific functional requirements and
    require the contractor to certify its understanding of the terms and
    conditions of the contract as they pertain to Davis-Bacon, resident
    hiring and Minority and Women Owned Business participation.

4.  **[Monitoring and Enforcement Authority and
    Responsibility]{.underline}**

    The function of monitoring and enforcing resident hiring will be
    carried out by the Section 3 Coordinator, including all field
    activities.

    **DEFINITION:**

    For participation in the Resident Hiring effort, a resident is
    defined as anyone who is residing in the Housing Authority or the
    City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ public housing developments,
    Section 8 residents and individuals residing within the City of
    \_\_\_\_\_\_\_\_\_\_\_\_\_ who can be classified as low-and very-low
    income.

    **Exhibit 4**

    **INSTRUCTIONS FOR COMPLETING THE SECTION 3 OPPORTUNITIES PLAN**

    **(SERVICE & PROFESSIONAL CONTRACTS)**

    The purpose of Section 3 is to ensure that jobs and economic
    opportunities generated by HUD financial assistance for housing and
    community development programs shall be directed to low and very low
    income persons, particularly those who are recipients of government
    assistance for housing and business concerns which provide economic
    opportunities to low and very low income persons.

    The Section 3 Opportunities Plan is to be completed for service and
    professional contracts. There are four (4) ways in which Section 3
    can be fulfilled. They are listed in order of preference:

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1)  Subcontract or joint venture with a resident owned business. The
    business must

    be 51% more owned by
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
    or

    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ public housing
    residents, or subcontractor/joint venture with a business that
    employs full-time, 30% or more \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, or low and very low income
    individuals within the
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, or

2)  Direct hiring of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Housing
    Authority's \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ public
    housing residents and/or low and very low-income neighborhood
    residents, or

3)  Incur the cost of providing skilled training for residents in an
    amount commensurate with the sliding scale set forth. Such training
    shall be determined after consultation with the Section 3
    Coordinator of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

4)  Contribute to \_\_\_\_\_\_\_\_\_\_\_\_ resident educational fund in
    an amount commensurate with the sliding scale included in the
    Section 3 Conditions.

    If a prime contractor is unable to satisfy \_\_\_\_\_\_\_\_ resident
    hiring requirements per the above, the requirements may be satisfied
    through any subcontractors that may be involved in the project.

    In paragraph number one (1), if the (sub)contractor has identified a
    resident owned business or a business which employs 30% or more
    \_\_\_\_\_\_\_\_ Public Housing or Neighborhood residents, this
    paragraph is to be completed by indicating the number of resident
    owned businesses that will be used on the contract/spec number shown
    at the end of the paragraph.

    If the (sub)contractor plans to hire \_\_\_\_\_\_\_\_ Public Housing
    or Neighborhood residents to work for its company, paragraph two (2)
    must be completed with the contract/spec number and the percentage
    of compliance in hiring the resident(s). For example, if your
    contract amount is \$100,000.00, the Section 3 dollar amount that
    must be expended is 10% of your labor dollars or \$10,000.00. If the
    whole dollar amount is to be expended on the resident's salary, then
    100% is to be inserted on the percent line. If a percentage amount
    less than 100% will be expended on the resident's salary, that
    amount must be inserted on the line and the remaining percentage
    must be expended through subcontracting/joint venturing with a
    resident owned business or a business that employs 30% or more
    residents, or placed into \_\_\_\_\_\_\_\_ Section 3 Resident
    Educational Fund. In which case, the corresponding paragraph must be
    completed.

    If the (sub)contractor has exhausted the first two (2) options, then
    the full amount of the contractor's Section 3 obligations will be
    placed into \_\_\_\_\_\_\_\_ Resident Educational Fund, in which
    case paragraph three (3) must be completed and paragraphs one (1)
    and two (2) will contain zeroes in the percentage lines.

    The second portion of the Section 3 Opportunities Plan begins with
    the specification or request for proposal title and number.

    The third section is to be completed by listing current staff to be
    used to complete the work bid upon.

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(1) List the job titles,

(2) Complete the Needed column if additional staff will be required to
    fulfill the classification,

(3) In the Total column, list the total number of staff plus the number
    needed,

(4) In the \_\_\_\_\_\_\_\_ and LIAR columns, list the number of current
    staff who are residents of \_\_\_\_\_\_\_\_ public housing, or who
    are low or very low income neighborhood residents,

(5) In the To Be Filled column, list the number of positions that fit
    into the low and very low-income \_\_\_\_\_\_\_\_ public housing
    residents \_\_\_\_\_\_\_\_ and low and very low income Area
    Residents (LIAR) who will be hired.

(6) In the Hiring Goal column, list the number of \_\_\_\_\_\_\_\_
    Public Housing residents or low and very low-income neighborhood
    residents you intend to hire.

    The final section is to be completed after the contract has been
    awarded; interviews have taken

Place and residents have been hired. The completed Section 3
Opportunities Plan must be submitted to the Section 3 Coordinator and
Procurement/Contracts Department.

The Housing Authority or the City of \_\_\_\_\_\_\_\_\_\_\_ public
housing and neighborhood residents are screened and skills assessed by
the Section 3 Coordinator. Each contractor is required to attend a
pre-construction conference with the Procurement/Contract Compliance
Department where contractual obligations will be explained, the
contractor's Section 3 dollar amount will be determined, and the
contractor's hiring goals will be discussed. The Section 3 coordinator
will refer qualified residents to be interviewed by the contractor.

The Section 3 Opportunities Plan that is submitted with the RFQ/RFP/IFB
and the final copy that is submitted to the Section 3 Coordinator and
Procurement Contract Compliance Department must be signed and include
the title of person executing the plan.

######## Exhibit 4

####### SECTION 3 OPPORTUNITIES PLAN

***Business Opportunities and Employment Training of the Housing
Authority of the City of \_\_\_\_\_\_\_\_ Public Housing Residents and
Low and Very Low Income Neighborhood***

***Residents***

######## Opportunities Plan

The Contractor had identified \_\_\_\_\_\_\_\_ Section 3 resident owned
business(es) or \_\_\_\_\_\_\_\_

business(es) which employ 30% or more Section 3 residents to comply with
\_\_\_\_\_\_\_\_% of its Section 3 requirements covered under Contract#
\_\_\_\_\_\_\_\_\_\_\_\_\_. (Option 1)

Alternately, the Contractor hereby agrees to comply with all the
provisions of Section 3 as set forth in 24 CFR 135.1 et seq. and
\_\_\_\_\_. Resolutions implementing Section 3 requirements. The
Contractor hereby submits this document to identify employment
opportunities for the \_\_\_\_\_\_\_\_ public housing residents and low
and very low-income area residents, during the term of the contract
between the Contractor and \_\_\_\_\_\_\_\_. The Contractor affirms that
the jobs identified shall be for meaningful employment that may or may
not be related to the scope of services covered under Contract
#\_\_\_\_\_\_\_\_. The Contractor has committed to employ the following
in order to comply with \_\_\_\_\_\_\_\_% of its Section 3 requirements.
(Option 2)

The above percentage(s) equal(s) 50% of the Contractor's Section 3
obligations. Option three (3) on page 2 equal 25% of compliance and
Option four (4) on page 2 equals 25% of compliance. You may choose one
option to comply or all; however, total compliance must equal 100%. The
Contractor hereby agrees by signing below that any remaining percentages
will be deducted from payouts placed in the \_\_\_\_\_\_\_\_ Section 3
Educational Fund.

I.  Labor Survey:

+-------------+-------+-------+-------+------+-------+-------+------+
| SPEC OR RFP |       |       |       | SPEC |       |       |      |
| TITLE       |       |       |       | OR   |       |       |      |
|             |       |       |       | RFP  |       |       |      |
|             |       |       |       | NU   |       |       |      |
|             |       |       |       | MBER |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
| **(1)**     | **    | **N   |       |      | **H   |       |      |
|             | (2)** | UMBER |       |      | IRING |       |      |
| **JOB       |       | OF    |       |      | G     |       |      |
| TITLE**     | **NEE | P     |       |      | OAL** |       |      |
|             | DED** | OSITI |       |      |       |       |      |
|             |       | ONS** |       |      | \(4\) |       |      |
|             |       |       |       |      | TO BE |       |      |
|             |       | \(3\) |       |      | (a)   |       |      |
|             |       |       |       |      | (b)   |       |      |
|             |       | FI    |       |      |       |       |      |
|             |       | LLLED |       |      | F     |       |      |
|             |       |       |       |      | ILLED |       |      |
|             |       |       |       |      | L     |       |      |
|             |       |       |       |      | ICSDR |       |      |
|             |       |       |       |      | LIAR  |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       | **    | **    | **(  |       |       |      |
|             |       | (a)** | (b)** | c)** |       |       |      |
|             |       |       |       |      |       |       |      |
|             |       | **TO  | **LIC | **LI |       |       |      |
|             |       | TAL** | SDR** | AR** |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
|             |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+
| **Page 1**  |       |       |       |      |       |       |      |
+-------------+-------+-------+-------+------+-------+-------+------+

**Exhibit 4**

+----------------+-----------------+-----------------+-----------------+
| **III.         |                 |                 |                 |
| Resident       |                 |                 |                 |
| List**         |                 |                 |                 |
|                |                 |                 |                 |
| **Section 3    |                 |                 |                 |
| Resident       |                 |                 |                 |
| Employee       |                 |                 |                 |
| Information    |                 |                 |                 |
| (Jobs to be    |                 |                 |                 |
| filled)**      |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
| **Job Title**  | **LICSPHAR OR\  | **ADDRESS**     | **SOCIAL        |
|                | LIAR NAME**     |                 | SECURITY**      |
|                |                 |                 |                 |
|                |                 |                 | **NUMBER**      |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+
|                |                 |                 |                 |
+----------------+-----------------+-----------------+-----------------+

LISPHAR = Low and Very Low Income \_\_\_\_\_\_\_\_\_\_\_\_ Housing
Authority Resident

LIAR = Low and Very Low Income Area Resident

Please check the Option(s) that describe your contracting efforts:

 Option 1: Subcontract with Section 3 Business(es) -- 25%

 Option 2: Hire Section 3 residents/participants -- 25%

 Option 3: I have a training program in place and am willing to train
\_\_\_\_\_\_\_\_ residents -- 25%

 Option 4: Contribute to the \_\_\_\_\_\_\_\_ training/educational fund
for resident training -- 25%

> In the event I am awarded the contract, I have the option to submit my
> check in the compliance amount of the start of contract date, or allow
> \_\_\_\_\_\_\_\_ to deduct payment from my draw requests. (Compliance
> amount is based upon the labor dollars of the contract award.)

You may comply by choosing one or all options. Remember your compliance
must be equal to 100% as noted on page 1, paragraph three (3), or any
remaining percentages will be deducted from payouts and placed in the
\_\_\_\_\_\_\_\_ resident training/educational fund account.

The failure of the contractor to comply with the above-approved plan
shall be a material breach of the contract.

Contractor's Signature and Title:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Page 2

#### Exhibit 4

NAME OF PRIME CONTRACTOR:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TITLE OF RFP OR
SPEC:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SPEC. \# OR RFP \# OR PURCHASE
ORDER#:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

CONTRACT
#:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SECTION 3 COORDINATOR

PROCUREMENT/CONTRACT COMPLIANCE DEPARTMENT

**WARNING: THIS DOCUMENT IS REQUIRED FOR ALL CONSTRUCTION OR LABOR
RELATED PROCUREMENTS.**

1\. Employment and Training of the Housing Authority or the City of
\_\_\_\_\_\_\_\_\_\_ Public Housing Residents and Low and Very Low
Income Area Residents.

The Contractor hereby agrees to comply with all the provisions of
Section 3 as set forth in 24 CFR 135.38 implementing Section 3
requirements. The contractor hereby submits this Schedule D as its
Section 3 Opportunities Plan.

The Contractor shall provide a status report identifying its progress in
meeting the Section 3 goals established in this Section D on a quarterly
basis throughout the contract period. The quarterly status report shall
be submitted no later than 10 days after the end of each calendar
quarter of the contract (e.g., April 10 for calendar quarter January 1
to March 31). The status report shall be in at least the same level of
detail as the approved Schedule D. For any goal not met, the report
shall identify any other economic opportunities, which the contractor
has provided, or intend to provide to \_\_\_\_\_\_\_\_ and neighborhood
residents.

The failure of the Contractor to comply with the approved plan shall be
a material breach of the contract.

Each Bidder/Proposer for a construction or labor related contract must
complete this Schedule D and submit all relevant information required
herein. A prime contractor, through its' subcontractors may satisfy the
\_\_\_\_\_\_\_\_ Resident Hiring Requirements. Please complete the Skill
Needs Table in Section 1 of Section 3 Opportunities Plan in the
following columns.

1)  indicate each category of employment for all phase of this contract;

2)  the number of positions which will be needed in each category;

3)  how many of those positions are currently filled;

    a.  the number filled by neighborhood residents, excluding
        \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_ residents;

b.  the number filled by \_\_\_\_\_\_\_\_ Public Housing residents;

c.  how many positions need to be filled.

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4)  Indicate your goal for the number of positions you intend to fill
    with:

    a.  Section 3 Residents

    b.  Low and Very low income area residents.

NOTE: The minimum of trainees is that which can reasonably be utilized
in each occupation, and no less than the number established by the U.S.
Secretary of Labor for construction and non-construction labor related
occupations. The contractor shall fill all vacant positions with
low-income persons (earning less than 80% of the median income in the
City of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and these positions shall not be
filled immediately prior to undertaking work in order to circumvent
regulations as set forth at 24 C.F.R. Part 135 et seq: as amended.

**II. SECTION 3 BUSINESSES SUBCONTRACTING OPPORTUNITIES**

In a one (1) page letter on your company's letterhead:

1)  Indicate the goals, expressed in terms of percentage of planning
    subcontracting dollars, for the use of Section 3 business concerns
    as subcontractors.

2)  A statement of the total dollar amount to be subcontracted, total
    dollar amount to be subcontracted to Section 3 business concerns for
    building trades, and total dollar amount to be subcontracted to
    Section 3 business concerns for other than building trades work
    (maintenance, repair, modernization and redevelopment).

3)  A description of the method used to develop the goals above and the
    efforts to be undertaken by the Contractor to meet those goals.

> Acknowledged by:
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> (President or Authorized Officer)
>
> Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_