SECTION 3 FOR HUD USE ONLY

SECTION 3 FOR HUD USE ONLY

SECTION 3: PROPOSED RULE

Section 3 is a provision of the Housing and Urban Development Act of 1968: SECTION 3 To ensure that jobs, training and contracting generated by HUD funding shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns that substantially employ those persons.

“STREAMLINING THE “SECTION 3” REQUIREMENTS FOR C R E AT I N G E C O N O M I C O P P O RT U N I T I E S F O R LO W-A N D -V E RY- LO W INCOME PERSONS AND ELIGIBLE BUSINESSES” P R O P O S E D R U L E T I M E L I N E U P DAT E S : Closing of Comment Period Internal Departmental Clearance August June 3 Completion of Comment Review Publication of Final Rule in the Federal Register (with a 30 day effective date) October September March 2020 February 2020 Rule sent to OMB for formal review (typically up to 90 days) Effective

Section 3 requires HUD funding recipients to make an effort (to the greatest extent feasible) to direct employment and economic opportunities that arise from HUD-funded activities to low-and-very-low incomes people. The Section 3 Proposed Rule reinforces this statutory framework while simplifying the administrative burden by: KEY CHANGES TO SECTION 3 Aligning Section 3 reporting with standard business practices. Promoting sustained employment and career development. Changing threshold for other HUD assistance programs subject to Section 3. Focusing reporting on key outcome metrics.

Key Changes Continued: Identifying “Targeted Section 3 Workers”. Setting initial benchmarks (see Benchmarks). Modifying the outcome benchmarks over time. Using qualitative reports to measure efforts if outcomes are inadequate. KEY CHANGES TO SECTION 3 and Integrating Section 3 into program enforcement. (CON’T) https://www.regulations.gov/document?D HUD-2019-0019-0001 Proposed Rule FR-6085-P-01 https://www.regulations.gov/document?D HUD-2019-0020-0001 Benchmarks6085FR-6085-N-02

SECTION 3: SPEARS

SPEARS: SECTION 3: SPEARS Section 3 Performance Evaluation And Reporting System

The Who and Why of Reporting: Direct the funding recipients to include public housing authorities, entitlement communities, states, and certain NOFA grantees that utilize HUD funding for construction and rehabilitation activities, to report; SPEARS replaces the paper-based data collection process; uses the same elements from the HUD form 60002; SECTION 3: SPEARS SPEARS captures data on the number of Section 3 residents hired or receiving training and the amount of contracts awarded to Section 3 businesses; 24 CFR Part 135.90 directs recipients of HUD financial assistance to submit reports to HUD for the purpose of determining the effectiveness of Section 3 no less than annually; The proposed Part 75 (.17 and .25), maintains annual reporting.

SECTION 3: OPPORTUNITY PORTAL

SECTION 3 OPPORTUNITY PORTAL The Section 3 Opportunity Portal helps match Section 3 Residents to jobs and training opportunities and Section 3 Businesses to contracting opportunities. Login.gov – (online secure access to government services) Job/Contracting opportunity portal Section 3 resident registry

SECTION 3 OPPORTUNITY PORTAL: LOGIN.GOV SECURE ACCESS TO GOVERNMENT SERVICES OFFERS THE PUBLIC ACCESS TO PARTICIPATING GOVERNMENT PROGRAMS REQUIREMENTS: (EMAIL & PHONE NUMBER)

SECTION 3 OPPORTUNITY PORTAL: JOB OPPORTUNITY POSTINGS Section 3 businesses and contracting companies will be able to post both job and contracting Opportunities in the Opportunity Portal. Opportunities will be submitted for review to HUD or automatically posted to the site after 24 hours.

SECTION 3 OPPORTUNITY PORTAL: CONTRACTING OPPORTUNITIES POSTINGS Section 3 businesses and contracting companies will be able to post both Job and contracting opportunities in the Opportunity Portal. Opportunities will be submitted for review to HUD or automatically posted to the site after 24 hours

SECTION 3 OPPORTUNITY PORTAL: SEARCH JOB AND CONTRACTING OPPORTUNITIES Public users will be able to Search Section 3 opportunities by job (type), contracts or by businesses identified in the Section 3 SPEARS Registry. Opportunity searches can be by Keyword or Location such as City, State, County or MSA.

SECTION 3 O P P O RT U N I T Y P O RTA L : S E A RC H B U S I N E S S E S Public users will be able to search Section 3 businesses that are identified in the Section 3 SPEARS Registry. Business searches can be by Keyword or Location such as City, State, County or MSA.

SECTION 3 OPPORTUNITY PORTAL: MANAGE BUSINESS OPPORTUNITIES Section 3 businesses and contracting companies will be able to manage both job opportunities and contracting opportunities in the Opportunity Portal.

SECTION 3 RESIDENT REGISTRY EXPANSION Expansion of the Section 3 Business Registry will: Include Section 3 Residents Registry. Enable Section 3 residents to upload contact information, skills summary, and resume. Allow residents to edit/update their information with self-certification. Resident information will be submitted for review to HUD or automatically posted to the site after 24 hours. Allow potential employers to Search the Section 3 Residents Registry for skilled resources. and (similar to USA Jobs) Provide guidance regarding posting of Personally Identifiable Information (PII) Resident Opportunity Search Business Candidate Search

SECTION 3 RESIDENT REGISTRY: ADD RESIDENT DETAILS Potential candidates can enter themselves in the Resident Registry Candidates enter their contact information, job skills and resumes Section 3 businesses will be able to search through a database of candidates by skills and location

SECTION 3 RESIDENT REGISTRY: BUSINESS ACCESS/BOOKMARK Section 3 business and Section 3 businesses and contractors will request access to contractors can Bookmark the portal to search available candidates they are interested in candidates for follow-up

SECTION 3: BUSINESS REGISTRY

Who should use the Business Registry? Public Housing Authorities. State, County, and local government agencies. Property owners; developers; contractors. SECTION 3: BUSINESS REGISTRY Others (a resource for finding local Section 3 businesses and notifying them about HUD-funded contracting opportunities). and Section 3 residents (to locate Section 3 businesses that may have new HUD-funded jobs as a result of recently awarded HUDfunded contracts).

Benefits of using the Business Registry: Find a listing of Section 3 businesses within their community. Self-certified who meet regulatory definitions of Section 3 business. SECTION 3: BUSINESS REGISTRY Searchable online database that can be used by agencies. Search for a Section 3 business by various geographic designations, (i.e. Metropolitan area, State, County, City, or Zip Code). Businesses can register with additional business types (i.e. Accounting, Architecture, Consulting, Demolition, Engineering, and Roofing). There are currently approximately 5,000 businesses listed across 49 states.

DETERMINING A SECTION 3 BUSINESS

R EGI STER FOR SECTI ON 3 SELFCERTIFI CATION

R EGI STER FOR SECTI ON 3 SELFCERTIFI CATION

R EGI STER FOR SECTI ON 3 SELFCERTIFI CATION

SEARCH FOR A HUD SECTION 3 BUSINESS

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