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Department of Housing and Community Development
 

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Section 3 Compliance

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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 and at One-Stop Career Center locations.
  5. As positions are vacated during the completion of a contract, following the guidelines enumerated in numbers one, two, three and four above.
  6. Submitting compliance reports as required.
  7. If notified of non-compliance, correcting non-compliance within the allowable time period.

Contracting:

  1. Submitting to DHCD a list of all work necessary to complete the contract.
  2. 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.
  3. 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.
  4. Coordinating pre-bid meetings at which Section 3 business concerns would be informed of upcoming contracting opportunities in advance.
  5. Conducting workshops on Section 3 contracting procedures to allow Section 3 business concerns the opportunity to take advantage of any upcoming contracting opportunities.
  6. 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.
  7. Submitting compliance reports as required.
  8. 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]

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