Section 3 businesses must, “to the greatest extent feasible”, comply with all federal and District laws and regulations. They include these requirements of 24 CFR § 75.19:   

Employment and training

Recipients of federal housing and community development funds must offer:

• Employment and training opportunities related to Section 3 projects in the District to Section 3 workers in the District
• These opportunities to:
  • Section 3 workers living in the project’s neighborhood or service area
  • YouthBuild program participants

Contracting

Section 3 businesses must award contracts for work on Section 3 projects in the District to:

• Businesses providing economic opportunities to Section 3 workers living in the District
• Businesses providing economic opportunities to Section 3 workers living in the project neighborhood or service area
• YouthBuild programs

The Section 3 Opportunities Plan and Certification  

The Section 3 Opportunities Plan and Certification outlines the funded project’s goals and how your business will achieve them. You must:  

• Submit the plan before receiving funds from DHCD
• Notify DHCD when the plan will start 30 days before the start date

Compliance Tips

DHCD expects that you will make every effort to ensure that your business complies with Section 3 and your Opportunities Plan and Certification. This includes the following:

Hiring and training

1. Submit a list to DHCD of all positions necessary to complete a project. Email it to [email protected] at least 30 days prior to the start of the project.
2. Conduct aggressive outreach regarding jobs and training opportunities. Advertise employment opportunities:

• In newspapers, mailings, and job board postings; and
• the Virtual One-Stop Career Center.

3. Post notices of vacant positions in the service area (the location and/or neighborhood of the Section 3 covered project). Include:

• Training and/or apprenticeship positions
• Qualifications
• Start dates
• Where to apply

4. Fill vacant training and/or apprenticeship positions with Section 3 residents in order of priority whenever possible.
5. Repeat 1-4 above as positions open while the project is underway.
6. Submit all required compliance reports.
7. Meet deadlines for correcting any non-compliance issues that arise.

Contracting

1. Submit to DHCD a list of all work necessary to complete the contract.
2. Provide written notice of contracting opportunities to all known Section 3 businesses.  Give them enough time to respond to the bid invitation.
3. Conduct aggressive outreach regarding potential contracting opportunities. Include information about:

• The project and services needed
• Where to get more information

4. Coordinate pre-bid meetings to inform Section 3 businesses of upcoming contracting opportunities in advance.
5. Conduct workshops on Section 3 contracting procedures, so Section 3 businesses can take advantage of upcoming contracts.
6. Inform the following of contracting opportunities:

• The DC Department of Small and Local Business Development
• Business assistance agencies
• Local, small, minority and disadvantaged business associations
• Contractor associations
• Community organizations
• Submitting compliance reports as required.

7. Submit all required compliance reports.
8. Meet deadlines for correcting any non-compliance issues that arise.

For more information about Section 3 compliance, contact DHCD at (202) 442-7200 or email us at [email protected].