Overview of Section 3 Requirements

A. What is Section 3?

Section 3 is a provision of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) that is regulated by the provisions of 24 CFR 75. Section 3 regulations ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

B. Purpose

This site outlines how the County of Riverside and its subrecipients, contractors and subcontractors will comply with HUD’s Section 3 requirements in implementing County of Riverside’s [HUD funded program]. County of Riverside will, to the greatest extent feasible, ensure that employment and other economic opportunities are directed to low- and very low-income persons (Section 3 workers and Targeted Section 3 workers) and to eligible businesses (Section 3 Businesses) and requires the same of its contractors.

County of Riverside may amend its Section 3 Policies and Procedures document as necessary to ensure continued compliance with HUD’s requirements and/or to reflect updated Section 3 guidance and outreach strategies.

C. Applicability

For public housing financial assistance, all funding is covered, regardless of the amount of expenditure or size of a contract. This plan applies to development assistance, operating funds, capital funds, and all mixed-finance development.

For housing and community development financial assistance, this plan applies to housing rehabilitation, housing construction, and other public construction projects that exceed $200,000 or more of housing and community development financial assistance from one or more HUD programs. Applicability is determined at the project level.

For projects funded with Lead and Hazard Control and Healthy Homes Programs, this plan applies to projects that exceed $100,000.

Section 3 requirements do not apply to: 1) Material Supply Contracts - § 75.3(b), 2) Indian and Tribal Preferences - § 75.3(c), and 3) Other HUD assistance and other Federal assistance not subject to Section 3 §75.3 (d). However, for financial assistance that is not subject to Section 3, recipients are encouraged to consider ways to support the purpose of Section 3.

County of Riverside’s Section 3 Coordinator serves as the central point of contact for Section 3 compliance for County of Riverside and its subrecipients, contractors and subcontractors supporting the program. Subrecipients, contractors, subcontractors and others are encouraged to reach out to County of Riverside’s Section 3 Coordinator with questions regarding Section 3 compliance:

HOME/NSP	IDIS	CDBG	WDC	HACR
Alicia Jamies	Melissa Valdivia	Susana Orozco	Jason Tang	Jennifer Graham
[email protected]	[email protected]	[email protected]	[email protected]	[email protected]
(951) 955-0783	(951) 955-5935	(951) 955-5933	(951) 955-3046	(951) 343-5437

CONTRACTING
Under the County of Riverside’s Section 3 Program, contractors and subcontractors must make their best efforts to award contracts and subcontracts to business concerns that provide economic opportunities to Section 3 workers in the following order or priority:

(for public housing financial assistance)
1) Section 3 business concerns that provide economic opportunities for residents of public housing
projects for which the assistance is provided;
2) Section 3 business concerns that provide economic opportunities for residents of other public
housing projects or Section-8 assisted housing managed by the PHA that is providing assistance;
3) YouthBuild programs; and
4) Section 3 business concerns that provide economic opportunities to Section 3 workers residing
within the metropolitan area (or nonmetropolitan county) in which the assistance is provided.

(for housing and community development financial assistance)
1) Business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which assistance is located in the following order of priority (where feasible):
a) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project; and
b) YouthBuild programs.
Contractors and subcontractors will be required to certify that they will and have made best efforts to follow the prioritization of effort requirements prior to the beginning of work and after work is completed.

Section 3 Eligibility and Certifications
Individuals and businesses that meet Section 3 criteria may seek Section 3 preference from County of Riverside or its contractors/subcontractors for training, employment, or contracting opportunities generated by [public housing financial assistance or housing and community development financial assistance]. To qualify as a Section 3 worker, Targeted Section 3 worker or a Section 3 business concern, each must self-certify that they meet the applicable criteria.

Businesses who misrepresent themselves as Section 3 business concerns and report false information to County of Riverside may have their contracts terminated as default and be barred from ongoing and future considerations for contracting opportunities.

A. Section 3 Worker and Targeted Section 3 Worker Certification

A Section 3 worker seeking certification shall submit self-certification documentation to the recipient contractor or subcontractor, that the person is a Section 3 worker or Targeted Section 3 worker as defined in 24 CFR Part 75. For the purposes of Section 3 worker eligibility, County of Riverside will use individual income rather than family/household income to determine eligibility. The income limits will be determined annually using the guidelines published at https://www.huduser.gov/portal/datasets/il.html . Persons seeking the Section 3 worker preference shall demonstrate that it meets one or more of the following criteria currently or when hired within the past five years, as documented:

1) A low or very low-income resident (the worker’s income for the previous or annualized calendar year is below the income limit established by HUD); or
2) Employed by a Section 3 business concern; or
3) A YouthBuild participant.

Persons seeking the Targeted Section 3 worker preference shall demonstrate that it meets one or more of the following criteria:
(for public housing financial assistance)

1) Employed by a Section 3 business concern or
2) Currently meets or when hired met at least one of the following categories as documented within the past five years:
a) A resident of public housing; or
b) A resident of other public housing projects or Section 8-assisted housing; or
c) A YouthBuild participant.
(for housing and community development assistance)
1) Employed by a Section 3 business concern or
2) Currently meets or when hired met at least one of the following categories as documented within the past five years:
a) Living within the service area or the neighborhood of the project, as defined in 24 CFR Part 75.5; or
b) A YouthBuild participant.

HUD defines a Section 3 Business Concern as:

A Business that is 51% owned by Section 3 eligible residents; or
A Business where at least 30% of the permanent, full-time employees are Section 3 Residents, or within 3 years of the date of first employment with the business concern were Section 3 Residents; or
A Business that provides evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications as set forth in part 1 and 2 above.

Prospective Bidders for construction projects funded with Riverside County CDBG:

All persons proposing to bid on a CDBG-funded project of $200,000 or more and that will require the use of subcontractors to complete the project, must consider and evaluate all qualified subcontractors on HUD’s Certified Section 3 Subcontractors List for Riverside County, prior to submitting bids. Please visit www.hud.gov/section3. However, bidders are not mandated to hire any subcontractors on the Certified Section 3 Subcontractors List, but they are required to provide all qualified subcontractors fair consideration.

For Section 3 covered contracts, contractors must submit the Section 3 Performance and Summary Report to County of Riverside’s Section 3 Coordinator on a monthly basis, and the annual reporting requirement set forth in that form’s instructions.
A. Monthly Reporting:
1) Contractors are required to submit monthly activity reports to County of Riverside’s Section 3 to respective Coordinator’s email address by the 29th day of each month.
2) Once a project is completed, contractors must submit a final Section 3 cumulative report for the program year.

Persons/Firms awarded CDBG-funded contracts of $200,000 or more:

All contractors, and any subcontractors, that will require the hiring of persons for construction trades to complete the CDBG-funded project, must consider and evaluate qualified low/moderate income persons that reside in Riverside County prior to filling these positions. A contractor or subcontractor can meet this obligation by the following:

Evaluating/interviewing persons on HUD’s Certified Section 3 Resident List for Riverside County visit www.hud.gov/section3
Evaluating/interviewing interested Public Housing residents of the Housing Authority of Riverside County, please contact HACR at [email protected] or (951) 343-5437
Evaluate/interview qualified candidates from the Workforce Development Center of Riverside County, please contact the WDC at (760) 863-2500 Eastern or (951) 955-3100. West-County
Visit the HUD Section 3 Opportunity Portal: https://hudapps.hud.gov/OpportunityPortal/
Register on the HUD Business Registry and direct contractors to the HUD Section 3 Business Registry https://www.hud.gov/section3 business registry: https://www.hud.gov/section3
Post job listing with the County of Riverside Workforce Development Center: at: www.rivcojobs.org/employer/register
Submit a list of core employees (including administrative, clerical, planning, and other positions pertinent to the construction trades) at the time of contact award.

Request for Certification
Individuals and businesses may seek Section 3 Certification by visiting HUD’s Section 3 website at www.hud.gov/section3.

Certification Forms links:

A Section 3 & Equal Opportunity Contracting Project Utilization Plan
B. Section 3 Worker List
C. Section 3 Business Concern Certification
D. Section 3 Worker Certification Form
E. Labor Hours Report

MORE INFORMATION

County of Riverside’s Program Managers serve as the central point of contact for Section 3 compliance for County of Riverside and its subrecipients, contractors and subcontractors supporting the program. Subrecipients, contractors, subcontractors and others are encouraged to reach out to County of Riverside’s Section 3 Coordinator with questions regarding Section 3 compliance: