DHCD funding recipients must meet Section 3’s goals to the greatest extent feasible by either: 1) employing Section 3 residents or 2) awarding ten percent (10%) of the total dollar amount of their contracts for building trades work and three percent (3%) of other contracts to Section 3 business concerns.
Hiring Section 3 Residents
If hiring is chosen, 30 percent of new hires on Section 3 projects must be Section 3 residents. Please remember that Section 3 jobs are also First Source jobs. Please contact the Department of Employment Services (DOES)’s First Source Employment Agreement Program for more information at (202) 698-6001 or via their website.
Training
A training program may be created to satisfy Section 3 goals. If so, DOES or the Apprenticeship Council should be contacted to assist in the development of the program. Pre-existing and approved training programs may be use to fulfill the Section 3 training requirements.
Contracting
There are specific requirements in the regulations regarding the award of contracts to Section 3 business concerns: (1) at least ten percent (10%) of the total dollar amount of all Section 3 contracts for building trades work arising in connection with housing rehabilitation, construction and other public construction with Section 3 covered assistance may be awarded to Section 3 business concerns and (2) at least three percent (3%) of the total dollar amount of all other contracts should be awarded to Section 3 business concerns. Supply and delivery contracts are exempt from these Section 3 policy requirements.
How can a recipient comply with Section 3?
Submit your required Section 3 Program Certification and Section 3 Opportunities Plan prior to being awarded DHCD funds, and thirty (30) days prior to starting your Section 3 Opportunities Plan, notify DHCD that you will start your plan. The plan requires recipients to state their Section 3 goals and the activities they will engage in to achieve them.
Compliance Tips
Some suggested actions to ensure compliance by recipients include:
Hiring and Training:
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Submitting to DHCD a list of all positions necessary to complete a project including: names of employees who will fill those positions and the names of all other project related employees.
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Posting notices of any vacant positions, in the service area (the location and/or neighborhood of the Section 3 covered project). The posting should include training and/or apprenticeship positions, qualifications for positions, places where applications will be received and starting date of employment.
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To the greatest extent possible, making available vacant positions, including training and/or apprenticeship positions, to Section 3 residents (all categories) in order of priority.
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Conducting aggressive outreach regarding potential employment and training opportunities, such as advertising employment opportunities via newspaper, mailings, and posting vacancies on job boards, in addition to the Virtual One-Stop Career Center.
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As positions are vacated during the completion of a contract, following the guidelines enumerated in numbers one, two, three and four above.
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Submitting compliance reports as required.
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If notified of non-compliance, correcting non-compliance within the allowable time period.
Contracting:
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Submitting to DHCD a list of all work necessary to complete the contract.
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Providing written notice of contracting opportunities to all known Section 3 business concerns. The written notice should be provided in sufficient time to enable business concerns the opportunity to respond to the bid invitation.
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Conducting aggressive outreach regarding potential contracting opportunities, including providing general information about the work to be contracted and where to obtain additional information about the work.
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Coordinating pre-bid meetings at which Section 3 business concerns would be informed of upcoming contracting opportunities in advance.
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Conducting workshops on Section 3 contracting procedures to allow Section 3 business concerns the opportunity to take advantage of any upcoming contracting opportunities.
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Contacting the DC Department of Small and Local Business Development; business assistance agencies; local, small, minority and disadvantaged business associations; contractor associations and community organizations to inform them of contracting opportunities.
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Submitting compliance reports as required.
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If notified of non-compliance, correcting non-compliance within the allowable time period.
Please contact DHCD for more information at (202) 442-7200 or via email at [email protected]