(1) by redesignating subsections (e), (f), and 
(g) as subsections (i), (j), and (k), respectively; 
(2) in subsection (i), as so redesignated— 
(A) in paragraph (1), by inserting at the 
end ‘‘Provided, however, that any resident of a 
public or Indian housing development or any 
other person who qualifies for a priority under 
section (c)(1)(B), and who was very low-income 
shall, for purposes of this Act, continue to qual-
ify, as initially verified, for a period of 5 years, 
irrespective of any increase in the person’s in-
come or other change in that person’s priority 
status during that period.’’; and 
(B) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) ONE-STOP DELIVERY SYSTEM.—The term 
‘one-stop delivery system’ has the meaning given 
that term in section 134(c) of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2864(c)).’’; and 
(3) by inserting after subsection (d) the fol-
lowing new subsections: 
‘‘(e) REQUIREMENT
FOR EMPLOYING LOW- AND 
VERY LOW-INCOME PERSONS.— 
‘‘(1) TWENTY PERCENT REQUIREMENT.— 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
‘‘(A) CONDITION OF ASSISTANCE.—It shall 
be a condition of any assistance provided to a 
public or Indian housing agency or contract 
awarded by a public or Indian housing agency 
for work to be performed in connection with de-
velopment assistance provided from the capital 
fund under section 9(d) of the United States 
Housing Act of 1937, the operating fund under 
section 9(e) of such Act, or any other Federal 
assistance for housing and community develop-
ment, 
including 
funding 
under 
section 
(8)(o)(13) of such Act, that, except as provided 
in paragraph 2(B), a minimum of 20 percent of 
all hours worked by employees of the public or 
Indian housing agency or of a contractor in 
connection with such contract shall be per-
formed by low- or very low-income persons who 
qualify 
for 
a 
priority 
under 
subsection 
(c)(1)(B). 
‘‘(B) REQUIREMENT.—It shall be a condi-
tion of any assistance provided to a recipient of 
other Federal housing and community develop-
ment assistance for housing rehabilitation, 
housing construction, or other public construc-
tion projects and their contractors, that a min-
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
imum of 20 percent of all hours worked by em-
ployees of the recipient or its contractors shall 
be performed by low- or very low-income per-
sons who qualify for a priority under subsection 
(c)(2)(B). 
‘‘(2) COMPLIANCE.—As a condition of any con-
tract awarded for the work described in paragraph 
(1), any contractor awarded such a contract shall— 
‘‘(A)(i) immediately before beginning work 
under such contract, submit evidence to the sat-
isfaction of the contracting agency and the sec-
tion 3 committee, showing that a minimum of 
20 percent of all hours worked in connection 
with such contract shall be performed by low- 
or very low-income persons who qualify for a 
priority under paragraphs (1)(B) and (2)(B) of 
subsection (c); and 
‘‘(ii) submit evidence to the satisfaction of 
the contracting agency and the section 3 com-
mittee showing that a minimum of 20 percent 
of all hours actually worked in connection with 
such contract were in fact performed by low- or 
very low-income persons who qualify for a pri-
ority under paragraphs (1)(B) and (2)(B) of 
subsection (c); or 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
‘‘(B) if such contractor cannot meet the re-
quirement imposed by paragraph (1)— 
‘‘(i) submit evidence to the satisfac-
tion of the contracting agency and the sec-
tion 3 committee that such contractor used 
all feasible means to meet such require-
ment by taking steps which include— 
‘‘(I) recruiting and conducting 
job interviews at the affected develop-
ment, in the affected community, and 
at training facilities; 
‘‘(II) working with the con-
tracting agency to advertise and re-
cruit low- and very low-income per-
sons; and 
‘‘(III) giving notice of such con-
tract to the one-stop delivery system 
for the area in which the work is to 
be done, including the particular 
skills, knowledge, and abilities needed 
by potential employees for work under 
such contract; and 
‘‘(ii) provide to the contracting agency 
and the section 3 committee, evidence, as 
the Secretary shall by regulation require, 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
sufficient to show why low- or very low-in-
come persons who were referred by either 
the contracting agency or by the one-stop 
delivery system, or who otherwise made 
themselves available did not have the skills, 
knowledge, or abilities to perform the 
work. 
‘‘(3) SECTION
COMMITTEE.—The Secretary 
shall require that a public and Indian housing agen-
cy and other recipients of Federal housing and com-
munity development assistance establish a section 3 
committee composed of interested parties, including 
a representative of the affected section 3 residents to 
oversee all aspects of compliance with section 3. For 
projects with a significant economic impact relative 
to the community size and the public housing agen-
cy, membership on the section 3 committee shall, at 
a minimum, include a representative of— 
‘‘(A) the contractor; 
‘‘(B) the public or Indian Housing Agency; 
‘‘(C) the resident association from the de-
velopment (or tenant delegate or section 3 resi-
dent where a tenant association does not exist); 
‘‘(D) where possible, a community based 
organization that has as its mission the pro-
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
motion of workforce development or economic 
development in low-income communities; 
‘‘(E) where they exist, women and minority 
trades organizations that offer employment 
services with expertise in preparing skilled 
workers for the construction field; and 
‘‘(F) when possible, coordinators and rep-
resentatives of the apprenticeship programs. 
‘‘(4) TRAINING.—Any contractor awarded a 
contract for the work described in paragraph (1) 
shall provide on-the-job training to any employee 
who is eligible for priority under subsection 
(c)(1)(B) and (c)(2)(B). Such training shall be pro-
vided through a State approved apprenticeship pro-
gram. 
‘‘(f) RECRUITMENT, REFERRAL, AND TRAINING RE-
QUIREMENTS.—The Secretary shall require the following 
of public and Indian housing agencies and recipients of 
other Federal housing and community development assist-
ance: 
‘‘(1) That such agencies and other recipients 
advertise the availability of training and employment 
opportunities generated by development assistance, 
and, with the section 3 committee, maintain a reg-
istry of eligible low- and very low-income persons 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
‘‘(2) REPORT
TO
CONGRESS.—The Secretary 
shall report annually to Congress a summary of in-
formation derived from the quarterly reports re-
quired under paragraph (1) and shall provide infor-
mation on the total amount of Federal funds that 
are subject to section 3. For each program, includ-
ing public housing and other Federal housing and 
community development assistance, by program, the 
report shall provide the number of jobs and training 
opportunities generated and the number of hours 
worked by low and very low income persons, and the 
number and amount of contracts and percentage of 
total contracts awarded to section 3 businesses. 
‘‘(h) FINES FOR NONCOMPLIANCE.— 
‘‘(1) FINES.—If a contractor of a public or In-
dian housing agency or any other contractor for a 
project receiving assistance under this section fails 
to comply with the requirements of this section, such 
contractor shall be fined by the Secretary in an 
amount not less than 1 percent of the amount of the 
contract with such agency. 
‘‘(2) DEPOSIT
OF
AMOUNTS.—The Secretary 
shall make the amounts collected under paragraph 
(1) available to the respective section 3 committee in 
the locality where such fines are assessed for the 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
purpose of providing job training opportunities for 
low- or very low-income persons who reside in the 
area of the contract described in paragraph (1).’’. 
(b) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary shall 
promulgate regulations to implement the requirements of 
subsections (e), (f), and (g) of section 3 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 1701u), 
including a requirement that public and Indian housing 
agencies include information regarding their compliance 
with this section in their five year plan, annual plans, or 
any alternative plan which calls for similar reporting. 
(c) CONFORMING AMENDMENTS.—Section 3(c) of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 
1701u(c) is amended— 
(1) in paragraph (1)(A), by inserting before the 
period ‘‘, and development and operating assistance 
provided pursuant to any other Federal housing and 
community development assistance’’; 
(2) in paragraph (1)(B), by striking clause (iv) 
and inserting after clause (iii) the following: 
‘‘(iv) To participants in section 8 pro-
grams administered by the public and In-
dian housing agency. 
VerDate Aug 31 2005 
07:37 Aug 04, 2007
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS
‘‘(v) To other low-income persons re-
siding within the metropolitan area (or 
nonmetropolitan county) in which the as-
sistance is expended, with preference to 
very low-income persons.’’; 
(3) in paragraph (2)(A), by adding at the end: 
‘‘The Secretary shall further ensure that permanent 
opportunities for training and employment created 
and retained as a result of housing and community 
development assistance are given to low- and very 
low-income persons residing within the metropolitan 
area (or nonmetropolitan county) in which the 
project is located.’’; and 
(4) in paragraph (2)(B), by inserting ‘‘, with 
preference to very low-income persons’’ after ‘‘very 
low-income persons’’. 
Æ 
VerDate Aug 31 2005 
02:12 Aug 06, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H3310.IH
H3310
cnoel on PRODPC75 with BILLS