Township Council Meeting — Packet

HIGHLIGHTS OF HUD'S PROPOSED RULE aan el AMENDING SECTION 3 OF THE HOUSING AND (| i URBAN DEVELOPMENT ACT OF 1968 ‘en sie What is Section 3? What Are the Major Highlights of the Section 3 Proposed Rule? Section 3 of the Housing and Urban Development Act of 1968 (Section 3) ensures The Section 3 Proposed Rule: 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. 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- Why is HUD Publishing a Proposed Rule to Amend the Current Section 3 Regulation? The current Section 3 regulation at 24 CFR § 135 PHA grantees. is vague in areas that have proved to be 5. Removes the 3% minimum numerical confusing and lead to differing interpretations, goal for non-construction contracts, The Section 3 proposed rule seeks to: 1) clarify 6. Requires PHAs and other grantees to obligations for PHAs and other grantees; 2) monitor contractor payroll data. incorporate HUD programs that have been 7. Mandates reference to Section 3 created since the publication of the current requirements in Project Labor regulation; and 3) codifies “best practices” that Agreements. > have proved successful for providing 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 employment and contracting opportunities, What is the Status of the Section 3 Proposed Bugs Section 3 annual reports. On [insert date] the Section 3 Proposed Rule 11. Imposes program sanctions on PHAs was published in the Federal Register for a 60 and grantees that fail to comply. day public comment period. To review the 12. Stipulates that relief may possibly be Section 3 Proposed Rule or provide public provided to aggrieved entities, comments; please visi . : How Do I Find Out More Information About ww © org/portal/ecut niti Sarina? «htm! Please visit: www.hud 6n3 All comments must be received by: iam May 26, 2015