Township Council Meeting — Packet

HIGHLIGHTS OF HUD’S PROPOSED RULE AMENDING SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 What is Section 3? Section 3 of the Housing and Urban Development Act of 1968 (Section 3) ensures that HUD-funded jobs training, and contracts are provided to local low-income residents, particularly those that reside in public housing, and businesses that substantially employ them. Why is HUD Publishing a Proposed Rule to Amend the Current Section 3 Regulation? The current Section 3 regulation at 24 CFR § 135 is vague in areas that have proved to be confusing and lead to differing interpretations. The Section 3 proposed rule seeks to: 1) clarify obligations for PHAs and other grantees; 2) incorporate HUD programs that have been created since the publication of the current regulation; and 3) codifies “best practices” that have proved successful for providing employment and contracting opportunities. What is the Status of the Section 3 Proposed Rule? On [insert date] the Section 3 Proposed Rule was published in the Federal Register for a 60 day public comment period. To review the Section 3 Proposed Rule or provide public comments, please visit: www.huduser.org/portal/economicOpportuniti es.html All comments must be received by: May 26, 2015 What Are the Major Highlights of the Section 3 Proposed Rule? The Section 3 Proposed Rule: 1. Establishes clearer guidelines for achieving compliance “to the greatest extent feasible”. 2. Requires “new hires” to work a minimum percentage of hours. 3. Revises the definition of a “Section 3 Business”. 4. Sets a new funding threshold for non- PHA grantees. 5. Removes the 3% minimum numerical goal for non-construction contracts. 6. Requires PHAs and other grantees to monitor contractor payroll data. 7. Mandates reference to Section 3 requirements in Project Labor Agreements. > 8. Incentivizes job retention and the provision of apprenticeship opportunities for Section 3 residents. 9. Allows grantees to accept self- certifications or presume eligibility. 10. Imposes penalties for failure to submit Section 3 annual reports. 11. Imposes program sanctions on PHAS and grantees that fail to comply. 12. Stipulates that relief may possibly be provided to aggrieved entities. How Do | Find Out More Information About Section 3? Please visit: www.hud.gov/section3