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 recipi-
ents, contractors, and subcontractors to make avail-
able employment opportunities to such persons rep-
resented by such organizations. 
‘‘(4) PRIORITY FOR RECIPIENTS AND CONTRAC-
TORS CREATING LONG-TERM EMPLOYMENT OPPOR-
TUNITIES.—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 em-
ploying low- and very low-income persons for 
periods of 12 months or longer in connection 
with previous such funds; and 
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‘‘(B) provide the Secretary with such as-
surances as the Secretary may require that 
among the employment opportunities generated 
by such funds awarded will be employment posi-
tions having a duration of 12 months or longer 
that will be filled only by low- and very-low in-
come persons. 
This paragraph may not be construed to preempt, 
alter, or otherwise affect any other provision of law 
establishing requirements for, or conditions prece-
dent to, award of funds administered by the Depart-
ment. 
‘‘(f) CONTRACTING.— 
‘‘(1) IN GENERAL.—The Secretary shall require 
that recipients of funds administered by the Depart-
ment and their contractors and subcontractors, con-
sistent with existing Federal, State, and local laws 
and regulations, award contracts for work to be per-
formed 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 
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a strategy to comply with the requirements of this 
section. 
‘‘(2) REQUIREMENT TO CONTRACT WITH QUALI-
FIED 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 con-
nection with such assistance award a minimum 
of 10 percent of the total dollar amount of all 
contracts to qualified businesses under sub-
section (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 sub-
paragraph (A), any recipient, contractor, or 
subcontractor awarded such a contract shall— 
‘‘(i)(I) immediately before beginning 
work under such contract, clearly dem-
onstrate to its awarding agency how com-
pliance with the contracting requirements 
of this section will be achieved; and 
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‘‘(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 require-
ments 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 agen-
cy, as the Secretary shall require by 
regulation, sufficient evidence to show 
why qualified businesses that sub-
mitted a bid in contracting opportuni-
ties could not feasibly have been 
awarded contracts. 
‘‘(g) PRIORITY.— 
‘‘(1) PRIORITY
OF
LOW- AND
VERY
LOW-IN-
COME PERSONS FOR TRAINING AND EMPLOYMENT.— 
The efforts required under subsections (d) and (e) 
(relating to training and employment) shall be di-
rected in the following order of priority: 
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‘‘(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 Hous-
ing Act of 1937 (42 U.S.C. 1437f(o)), who re-
side in the service area, and the metropolitan 
area or nonmetropolitan county, where the as-
sistance is being expended. 
‘‘(B) Second, to low- and very low-income 
residents of the service area, and the metropoli-
tan area or nonmetropolitan county, where the 
assistance is being expended. 
‘‘(C) Third, to other residents, as des-
ignated by the Secretary by regulation, of the 
service area, and the metropolitan area or non-
metropolitan county, where the assistance is 
being expended. 
‘‘(2) PRIORITY OF QUALIFIED BUSINESSES FOR 
CONTRACTING.—The efforts required under sub-
section (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 
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area, and the metropolitan area or nonmetro-
politan county, where the assistance is being ex-
pended. 
‘‘(B) Second, to qualified businesses that 
provide significant training and job opportuni-
ties to low- and very low-income persons who 
reside in the service area, and the metropolitan 
area or nonmetropolitan county, where the as-
sistance is being expended. 
‘‘(C) Third, to qualified businesses or to 
disadvantaged businesses, as defined by the 
Secretary by regulation, that are located in dis-
tressed communities that provide economic op-
portunities to low-income residents of the met-
ropolitan 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. 
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‘‘(h) REPORTING AND ADMINISTRATIVE REQUIRE-
MENTS.—All notices of funding availability issued by the 
Department shall include a provision that notifies appli-
cants of their requirement to comply with this section, the 
incentives associated with exceeding such requirements 
and the penalties associated with noncompliance. The De-
partment shall prioritize its funding decisions to recipients 
that demonstrate that their proposal was developed in con-
sultation with employers, local labor organizations, edu-
cation 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 assist-
ance is being expended, and community-based organiza-
tions that work with the targeted individuals and qualified 
businesses. Recipients shall be required to include infor-
mation 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 perform-
ance 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 recipi-
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ents, contractors, and subcontractors, and to facilitate co-
ordination 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 recipi-
ents, their contractors and subcontractors in com-
plying with this section, and such hearings shall— 
‘‘(A) provide for and encourage citizen par-
ticipation, with particular emphasis on partici-
pation 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 hear-
ings 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 
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with reasonable access to records regarding its past 
compliance, and that of its contractors and sub-
contractors, with the program under this section. 
Recipients shall ensure that outreach efforts under 
this subsection are coordinated with available resi-
dent 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 em-
ployment and contracting requirements and on 
their contractors and subcontractors perform-
ance. Recipients shall ensure that their contrac-
tors and subcontractors provide them with the 
necessary information to furnish such reports. 
‘‘(B) INFORMATION REGARDING FAILURE 
TO MEET EMPLOYMENT AND CONTRACTING RE-
QUIREMENT.—For any period in which the re-
cipient, or their contractor or subcontractor, did 
not meet their employment or contracting re-
quirement as provided for in subsection (e) or 
(f), respectively, the report shall describe ac-
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tions that were taken to meet the requirement, 
including actions taken or that will be taken in 
future funding opportunities to address the de-
ficiencies in the actions that resulted in failure 
to meet employment and contracting require-
ments. 
‘‘(C) PUBLIC AVAILABILITY.—Each report 
pursuant to this paragraph shall be made avail-
able, 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 pro-
gram area and jurisdiction, and the outcomes 
produced, including specific information on the 
amount of training, jobs, and contracting op-
portunities generated by such funds. 
‘‘(B) ASSESSMENT OF NONCOMPLIANCE.— 
Each report shall include an assessment of any 
noncompliance of any recipients with the re-
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quirements of this section, by State, and spe-
cific recommendations regarding actions to re-
duce 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 train-
ing and job readiness needs in the community, 
enabling low- and very low-income persons to 
hold a steady job, providing contracting oppor-
tunities for businesses that qualify for priority 
under subsection (g)(2), and any recommenda-
tions the Secretary determines appropriate re-
garding the program under this section. 
‘‘(3) GAO REPORT.—Not later than the expira-
tion of the two-year period beginning on the date of 
the enactment of the Affordable Communities Em-
ployment Act of 2011, the Comptroller General of 
the United States shall submit a report to the Con-
gress on the implementation of this section, that 
specifically describes the extent of compliance with 
this section, amount of funds awarded that were cov-
ered by this section, and outcomes, and that makes 
recommendations to improve the section’s effective-
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