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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3254 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3254

To amend the Housing and Urban Development Act of 1968 to ensure access 
          to employment opportunities for low-income persons.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2011

Ms. Velazquez introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To amend the Housing and Urban Development Act of 1968 to ensure access 
          to employment opportunities for low-income persons.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Communities Employment 
Act of 2011''.

SEC. 2. ECONOMIC OPPORTUNITIES FOR LOW-INCOME PERSONS.

    (a) In General.--Section 3 of the Housing and Urban Development Act 
of 1968 (12 U.S.C. 1701u) is amended to read as follows:

``SEC. 3. OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS.

    ``(a) Findings.--The Congress finds that--
            ``(1) funds administered by the Department of Housing and 
        Urban Development, particularly those intended for housing 
        construction, rehabilitation, repair, modernization, 
        management, self-sufficiency, community development, and other 
        public construction, provide State and local governments, 
        housing providers, and other recipients of this Federal 
        financial assistance with substantial funds for projects and 
        activities that produce significant economic opportunities for 
        the communities where the funds are expended;
            ``(2) low- and very low-income persons, especially 
        recipients of government assistance for housing, often face 
        barriers to access training, employment, and contracting 
        opportunities resulting from the expenditure of Federal funds 
        in their communities;
            ``(3) training, employment, and contracting opportunities 
        generated by projects and activities that receive assistance 
        from the Department of Housing and Urban Development offer an 
        effective means of empowering low- and very low-income persons 
        and local businesses that provide training and job 
        opportunities for them;
            ``(4) prior Federal efforts to direct training, employment, 
        and contracting opportunities generated by programs 
        administered by the Secretary of Housing and Urban Development 
        to low- and very low-income persons, and businesses that 
        provide training and job opportunities for these persons, have 
        not been fully effective and should be intensified; and
            ``(5) funding provided to other Federal agencies may also 
        produce significant employment and contracting opportunities 
        for the communities where the funds are expended;
    ``(b) Policy.--It is the policy of the Congress and the purpose of 
this section to ensure that training, employment, and contracting 
opportunities generated by Federal financial assistance administered by 
the Secretary of Housing and Urban Development and other Federal 
agencies, when feasible, shall be directed to low- and very low-income 
persons, particularly those who are recipients of government assistance 
for housing.
    ``(c) Administration.--There is established, in the Department of 
Housing and Urban Development, an Office of Economic Opportunities, for 
carrying out this section. The Office of Economic Opportunities shall 
assume any functions and responsibilities relating to carrying out this 
section that, as of the date of enactment of the Affordable Communities 
Employment Act of 2011, reside in the Office of Fair Housing and Equal 
Opportunity.
    ``(d) Training.--
            ``(1) Recipients.--If any recipient of funds administered 
        by the Department provides on-the-job or job-related training 
        to any employee, new hire, or business in relation to the 
        project or projects funded by the Department, priority shall be 
        given to persons and qualified businesses who are eligible for 
        priority under paragraphs (1) and (2), respectively, of 
        subsection (g).
            ``(2) Contractors.--If any contractor that performs work 
        connected to the expenditure of funds administered by the 
        Department provides on-the-job training to any employee, new 
        hire, or business in relation to the project or projects funded 
        by the Department, priority for such training should be given 
        to persons and qualified businesses who are eligible for 
        priority under paragraphs (1) and (2), respectively of 
        subsection (g).
            ``(3) Approved training programs.--All training provided 
        pursuant to this subsection shall be provided through a program 
        approved by the Federal Government, by a State or local 
        government, or by an endorsed trade association, as such term 
        is defined by the Secretary. Training in relation to the 
        expenditure of funds received by the Department may also refer 
        to secondary, vocational, or higher education programs, as such 
        terms are defined by the Secretary of Education. Recipients and 
        contractors shall be encouraged by the Secretary to provide 
        training by providing performance incentives through the 
        Department's evaluation process.
            ``(4) Performance incentives.--To encourage establishment 
        of exemplary training programs for training provided pursuant 
        to this subsection, the Secretary shall establish and award 
        performance incentives, including through the Department's 
        evaluation process, to recipients and contractors establishing 
        such exemplary training programs, including programs providing 
        training that promotes career advancement for persons that 
        receive priority under subsection (g).
    ``(e) Employment.--
            ``(1) In general.--The Secretary shall require that 
        recipients of funds administered by the Department, and their 
        contractors and subcontractors, consistent with existing 
        Federal, State, and local laws and regulations, give priority 
        to low- and very low-income persons for training and employment 
        opportunities generated by such funds. To the extent that a 
        recipient or contractor of funds awarded by the Department 
        intends to enter into a project labor agreement, the project 
        labor agreement shall include a strategy to comply with the 
        requirements of this section.
            ``(2) Requirement to employ low- and very low-income 
        persons.--
                    ``(A) Condition of assistance.--It shall be a 
                condition of any assistance provided by the Secretary 
                to recipients and their contractors and subcontractors, 
                except in the case of rental subsidies provided in 
                accordance with section 8(o) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(o)) (but not 
                excepting funding provided in accordance with paragraph 
                (13) of such section 8(o)) or other funding streams as 
                determined by the Secretary, for work to be performed 
                in connection with such funds, that--
                            ``(i) for recipients, a minimum of 30 
                        percent of new hires in connection with such 
                        funds shall be low- and very low-income persons 
                        who qualify for a priority under subsection 
                        (g)(1); and
                            ``(ii) for contractors, 20 percent of all 
                        hours worked shall be performed by low- and 
                        very low-income persons who qualify for a 
                        priority under subsection (g)(1).
                Special consideration shall be given to persons 
                enrolled in State-approved apprenticeship programs. The 
                conditions under this subparagraph shall be applicable 
                to, but not limited to, work such as repair, 
                modernization, management, administrative, professional 
                services, as well as work related to housing 
                rehabilitation, housing construction, or other public 
                construction projects. Recipients that exceed the 
                percentage required under this subparagraph shall 
                receive performance incentives, as the Secretary shall 
                establish, to encourage them to exceed such 
                requirements.
                    ``(B) Compliance.--As a condition of any contract 
                awarded for the work described in subparagraph (A), any 
                recipient, contractor, or subcontractor awarded such a 
                contract shall--
                            ``(i) ensure that all work in connection 
                        with their contract complies with the 
                        provisions of this subsection;
                            ``(ii) submit evidence to its awarding 
                        agency that clearly describes how compliance 
                        with the employment requirements will be 
                        achieved; and
                            ``(iii) submit evidence to its awarding 
                        agency that--
                                    ``(I) clearly describes actual 
                                outcomes produced in fulfillment of the 
                                employment requirements of this 
                                section; or
                                    ``(II)(aa) clearly shows that the 
                                recipient, contractor, or subcontractor 
                                used all feasible means to meet such 
                                employment requirements, including the 
                                specific actions taken to meet the 
                                employment requirements, and why such 
                                actions were not successful, and 
                                efforts to overcome deficiencies in 
                                such actions to meet the employment 
                                requirements,
                                    ``(bb) shows why the low- and very 
                                low-income persons applying for the 
                                employment opportunities could not 
                                feasibly be hired, or
                                    ``(cc) is sufficient to show why 
                                the employment requirements could not 
                                be reached.
            ``(3) First-source contracts.--In meeting the requirements 
        under this subsection, recipients of funds administered by the 
        Department, and their contractors and subcontractors may enter 
        into hiring agreements with organizations representing low- and 
        very-low income persons that provide for such recipients, 
        contractors, and subcontractors to make available employment 
        opportunities to such persons represented by such 
        organizations.
            ``(4) Priority for recipients and contractors creating 
        long-term employment opportunities.--In making available funds 
        administered by the Department, the Secretary may give priority 
        in the award of such funds to recipients of such funds who, or 
        whose contractors or subcontractors, or both--
                    ``(A) have a demonstrated history of employing low- 
                and very low-income persons for periods of 12 months or 
                longer in connection with previous such funds; and
                    ``(B) provide the Secretary with such assurances as 
                the Secretary may require that among the employment 
                opportunities generated by such funds awarded will be 
                employment positions having a duration of 12 months or 
                longer that will be filled only by low- and very-low 
                income persons.
        This paragraph may not be construed to preempt, alter, or 
        otherwise affect any other provision of law establishing 
        requirements for, or conditions precedent to, award of funds 
        administered by the Department.
    ``(f) Contracting.--
            ``(1) In general.--The Secretary shall require that 
        recipients of funds administered by the Department and their 
        contractors and subcontractors, consistent with existing 
        Federal, State, and local laws and regulations, award contracts 
        for work to be performed in connection with such funds to 
        businesses that provide or retain economic opportunities for 
        low- and very low-income persons. To the extent that a 
        recipient or contractor of funds awarded by the Department 
        intends to enter into a project labor agreement, the project 
        labor agreement shall include a strategy to comply with the 
        requirements of this section.
            ``(2) Requirement to contract with qualified businesses.--
                    ``(A) Condition of assistance.--It shall be a 
                condition of any assistance provided by the Department, 
                that recipients, contractors, and subcontractors for 
                work to be performed in connection with such assistance 
                award a minimum of 10 percent of the total dollar 
                amount of all contracts to qualified businesses under 
                subsection (g)(2)(A). Recipients that exceed such 
                percentage shall receive performance incentives, as the 
                Secretary shall establish, to encourage them to exceed 
                such requirement.
                    ``(B) Compliance.--As a condition of any contract 
                awarded for the work described in subparagraph (A), any 
                recipient, contractor, or subcontractor awarded such a 
                contract shall--
                            ``(i)(I) immediately before beginning work 
                        under such contract, clearly demonstrate to its 
                        awarding agency how compliance with the 
                        contracting requirements of this section will 
                        be achieved; and
                            ``(II) submit evidence to its awarding 
                        agency clearly showing actual outcomes produced 
                        in fulfillment of the contracting requirements 
                        of this section; or
                            ``(ii) if such recipient, contractor, or 
                        subcontractor cannot meet the requirements 
                        under subparagraph (A)--
                                    ``(I) submit evidence to its 
                                awarding agency showing clearly that 
                                such contractor used all feasible means 
                                to meet such requirement; or
                                    ``(II) provide its awarding agency, 
                                as the Secretary shall require by 
                                regulation, sufficient evidence to show 
                                why qualified businesses that submitted 
                                a bid in contracting opportunities 
                                could not feasibly have been awarded 
                                contracts.
    ``(g) Priority.--
            ``(1) Priority of low- and very low-income persons for 
        training and employment.--The efforts required under 
        subsections (d) and (e) (relating to training and employment) 
        shall be directed in the following order of priority:
                    ``(A) First, to recipients of Federal rental 
                assistance, including public housing residents, 
                residents of other federally assisted subsidized 
                properties, and participants in the program under 
                section 8(o) of the United States Housing Act of 1937 
                (42 U.S.C. 1437f(o)), who reside in the service area, 
                and the metropolitan area or nonmetropolitan county, 
                where the assistance is being expended.
                    ``(B) Second, to low- and very low-income residents 
                of the service area, and the metropolitan area or 
                nonmetropolitan county, where the assistance is being 
                expended.
                    ``(C) Third, to other residents, as designated by 
                the Secretary by regulation, of the service area, and 
                the metropolitan area or nonmetropolitan county, where 
                the assistance is being expended.
            ``(2) Priority of qualified businesses for contracting.--
        The efforts required under subsection (f) (relating to 
        contracting) shall be directed in the following order of 
        priority:
                    ``(A) First, to qualified businesses that are 
                majority owned and controlled by low- and very-low 
                income persons who reside in the service area, and the 
                metropolitan area or nonmetropolitan county, where the 
                assistance is being expended.
                    ``(B) Second, to qualified businesses that provide 
                significant training and job opportunities to low- and 
                very low-income persons who reside in the service area, 
                and the metropolitan area or nonmetropolitan county, 
                where the assistance is being expended.
                    ``(C) Third, to qualified businesses or to 
                disadvantaged businesses, as defined by the Secretary 
                by regulation, that are located in distressed 
                communities that provide economic opportunities to low-
                income residents of the metropolitan area or 
                nonmetropolitan county where the assistance is being 
                expended.
                    ``(D) Fourth, to small and disadvantaged qualified 
                businesses as defined by the Small Business 
                Administration.
                    ``(E) Fifth, to other qualified businesses, as 
                determined by the Secretary by regulation, that are 
                located in the metropolitan area or non-metropolitan 
                county where the assistance is being expended.
    ``(h) Reporting and Administrative Requirements.--All notices of 
funding availability issued by the Department shall include a provision 
that notifies applicants of their requirement to comply with this 
section, the incentives associated with exceeding such requirements and 
the penalties associated with noncompliance. The Department shall 
prioritize its funding decisions to recipients that demonstrate that 
their proposal was developed in consultation with employers, local 
labor organizations, education and training providers, low- and very 
low-income persons, especially those entitled to the highest priorities 
under this section in accordance with paragraph (1) of this subsection, 
elected bodies representing low- and very low-income persons who live 
in developments where the assistance is being expended, and community-
based organizations that work with the targeted individuals and 
qualified businesses. Recipients shall be required to include 
information regarding their compliance with this section in their 5-
year plans, annual plans, or any alternative plans that provide for 
similar reporting. The Department shall make compliance with this 
section part of any performance standard for recipients and their 
contractors.
    ``(i) Public Accountability.--In order to permit public examination 
and appraisal of the program under this section, to enhance the public 
accountability of recipients, contractors, and subcontractors, and to 
facilitate coordination of activities with different stakeholders, each 
recipient shall in a timely manner--
            ``(1) furnish citizens and, as appropriate, other interest 
        groups information with reasonable notice concerning the amount 
        of Federal funds available that are subject to the requirements 
        of this section, by service area;
            ``(2) hold annual community hearings to obtain the views of 
        citizens on performance of the recipients, their contractors 
        and subcontractors in complying with this section, and such 
        hearings shall--
                    ``(A) provide for and encourage citizen 
                participation, with particular emphasis on 
                participation by low- and very low-income persons who 
                are residents of the developments, service areas, or 
                neighborhoods where funds are proposed to be used; and
                    ``(B) identify how the needs of limited English 
                proficiency low- and very low-income persons will be 
                met in the case of public hearings where a significant 
                number of such persons can be reasonably expected to 
                participate; and
            ``(3) provide citizens or, as appropriate, units of general 
        local government or other interested parties with reasonable 
        access to records regarding its past compliance, and that of 
        its contractors and subcontractors, with the program under this 
        section.
        Recipients shall ensure that outreach efforts under this 
        subsection are coordinated with available resident 
        participation programs in the service area. The Secretary shall 
        publish and make widely available compliance reports for all 
        recipients for at least the last 5 years.
    ``(j) Reports.--
            ``(1) Agency reports to secretary.--
                    ``(A) Requirement.--All recipients shall report 
                annually to the Secretary on their employment and 
                contracting requirements and on their contractors and 
                subcontractors performance. Recipients shall ensure 
                that their contractors and subcontractors provide them 
                with the necessary information to furnish such reports.
                    ``(B) Information regarding failure to meet 
                employment and contracting requirement.--For any period 
                in which the recipient, or their contractor or 
                subcontractor, did not meet their employment or 
                contracting requirement as provided for in subsection 
                (e) or (f), respectively, the report shall describe 
                actions that were taken to meet the requirement, 
                including actions taken or that will be taken in future 
                funding opportunities to address the deficiencies in 
                the actions that resulted in failure to meet employment 
                and contracting requirements.
                    ``(C) Public availability.--Each report pursuant to 
                this paragraph shall be made available, in its 
                entirety, to the general public not later than 15 
                business days after the end of the period covered by 
                the report.
            ``(2) Annual reports to congress.--
                    ``(A) Requirement.--The Secretary shall report 
                annually to the Congress a summary of information 
                derived from the periodic reports required under 
                paragraph (1) and shall provide information on the 
                total amount of Federal funds that are subject to this 
                section, by program area and jurisdiction, and the 
                outcomes produced, including specific information on 
                the amount of training, jobs, and contracting 
                opportunities generated by such funds.
                    ``(B) Assessment of noncompliance.--Each report 
                shall include an assessment of any noncompliance of any 
                recipients with the requirements of this section, by 
                State, and specific recommendations regarding actions 
                to reduce and eliminate such noncompliance.
                    ``(C) Review of effectiveness.--Each report shall 
                include a review of the effectiveness of the program in 
                providing jobs for low- and very low-income persons, 
                meeting unmet training and job readiness needs in the 
                community, enabling low- and very low-income persons to 
                hold a steady job, providing contracting opportunities 
                for businesses that qualify for priority under 
                subsection (g)(2), and any recommendations the 
                Secretary determines appropriate regarding the program 
                under this section.
            ``(3) GAO report.--Not later than the expiration of the 
        two-year period beginning on the date of the enactment of the 
        Affordable Communities Employment Act of 2011, the Comptroller 
        General of the United States shall submit a report to the 
        Congress on the implementation of this section, that 
        specifically describes the extent of compliance with this 
        section, amount of funds awarded that were covered by this 
        section, and outcomes, and that makes recommendations to 
        improve the section's effectiveness and a recommendation for 
        when there should be a follow-up report.
    ``(k) Noncompliance.--
            ``(1) Investigation and enforcement.--In carrying out this 
        section, the Secretary shall develop and implement procedures 
        to review complaints alleging noncompliance by any recipient or 
        contractor with the requirements of this section, and to take 
        such actions as provided in this subsection as the Secretary 
        determines appropriate to ensure compliance and prevent future 
        noncompliance.
            ``(2) Sanctions.--Recipient agencies and their contractors 
        and subcontractors that do not comply with this section or the 
        requirements established under the program under this section 
        shall be sanctioned by the Secretary, and such sanctions shall 
        include reduction of future funds from the Department, 
        including any discretionary funds available under the HOPE VI 
        program under section 24 of the United States Housing Act of 
        1937 (42 U.S.C. 1437v), debarment, suspension, limited denial 
        of participation in programs of the Department, or such other 
        sanctions as determined by the Secretary to discourage 
        noncompliance.
            ``(3) Limitations on contracts.--Recipients shall refrain 
        from entering into contracts with any contractor in any case in 
        which the recipient has notice or knowledge that the contractor 
        has violated this section or the requirements of the program 
        under this section.
            ``(4) Relief and right of action.--If an investigation by 
        the Department results in conclusive findings of noncompliance, 
        the Department may require the recipient or contractor to grant 
        relief, such as compensation of costs or damages incurred or 
        suffered, to the aggrieved party, as determined by the 
        Secretary. The aggrieved party also shall have the right to 
        bring a civil action against the recipient or contractor found 
        to be in noncompliance by the Department to recover costs or 
        damages incurred or suffered.
            ``(5) Effect on other rights and remedies.--This subsection 
        shall not be construed to interfere with judicial review 
        regarding compliance with this section pursuant to chapter 7 of 
        title 5, United States Code, or an action regarding such 
        compliance under section 1979 of the Revised Statutes of the 
        United States (42 U.S.C. 1983), or any other rights or remedies 
        of an aggrieved party and shall not preempt and State or local 
        laws that facilitate achieving the purposes of this section and 
        provide additional protections to low- and very low-income 
        persons or qualified businesses, or both.
    ``(l) Definitions.--For the purposes of this section, the following 
definitions shall apply:
            ``(1) Contractor.--The term `contractor' means any entity 
        that contracts with a recipient to perform work generated by 
        the expenditure of assistance from the Department of Housing 
        and Urban Development.
            ``(2) Department.--The term `Department' means the 
        Department of Housing and Urban Development.
            ``(3) Low- and very low-income persons.--The terms `low-
        income persons' and `very low-income persons' have the same 
        meanings given the terms `low-income families' and `very low-
        income families', respectively, in section 3(b)(2) of the 
        United States Housing Act of 1937, or such other definitions as 
        the Secretary may determine appropriate to facilitate the 
        employment of a low- and very low-income persons in a 
        designated area or areas, on a temporary or permanent basis, 
        based on a family's receipt, in such area or areas of Federal, 
        State, or local government housing, income, food, or other 
        subsidies, and on such other criteria as the Secretary may 
        establish through regulation. Notwithstanding any provision of 
        this paragraph, any person who qualifies for a priority under 
        subsection (g)(1), and who was very low income shall, for 
        purposes of this section, continue to qualify, as initially 
        verified, for a period of 5 years, irrespective of any increase 
        in the person's income or other change in that person's 
        priority status during such period.
            ``(4) Qualified business.--The term `qualified business' 
        means a entity that meets such criteria as the Secretary may 
        establish, which may include a national certification process.
            ``(5) Recipient.--The term `recipient' means any entity 
        that receives assistance directly from the Department, and 
        includes any State, unit of local government, public housing 
        agency, Indian housing authority, Indian tribe, and any other 
        public body, public or private nonprofit or for-profit 
        organization, and private agency or institution.
            ``(6) Secretary.--The term `Secretary' means, except as 
        specifically provided otherwise, the Secretary of Housing and 
        Urban Development.
    ``(m) Coordination With Other Federal Agencies.--
            ``(1) Collaborative agreements.--Within 180 days after the 
        enactment of the Affordable Communities Employment Act of 2011, 
        the Secretary shall enter into formal collaborative agreements 
        regarding training, employment, contracting, or other areas as 
        determined by the Secretary for low- and very low-income 
        persons and qualified businesses with the Secretary of Labor, 
        the Secretary of Health and Human Services, the Secretary of 
        Commerce, the Administrator of the Small Business 
        Administration, the Secretary of Transportation, the Secretary 
        of Education, and the heads of such other Federal agencies as 
        the Secretary determines necessary to carry out this section 
        and to promote and maximize access to existing resources and 
        programs.
            ``(2) Report.--Within 12 months after the enactment of the 
        Affordable Communities Employment Act of 2011, the Secretary 
        shall submit a report to the Congress on changes needed in the 
        programs administered by other agencies that interact with the 
        program under this section to facilitate the effective 
        implementation and outcomes of the program under this 
        section.''.
    (b) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall issue regulations to implement the requirements of section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), as 
amended by subsection (a) of this section.
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