Fair Housing/ Equal Opportunity and Section 3

2011 CDBG Applicants’ Workshop

Fair Housing/ Equal Opportunityand

Section 3

2011 CDBG Applicants’ Workshop December 6-8, 2010

What is Fair Housing/Equal Opportunity?

• Ensuring non-discriminatory treatment and equal access to all recipients of CDBG funds.

• Affirmatively furthering Fair Housing.


Applicability

▪ Infrastructure improvements

▪ Public Facilities

▪ Housing Rehabilitation

▪ Economic Development

▪ Down-Payment Assistance

▪ Section 8 Rental Assistance

▪ Any activity receiving federal funds


Applicable Categories

• Race

• Color

• National origin

• Gender

• Age

• Religion

• Any other protected categories of persons


Applicable Laws and Regulations

• Several Federal laws protect individuals from discrimination and apply to CDBG funded activities. These include:

▪ Section 109 of the Housing and Community Development Act of 1974-prohibits discrimination on the basis of race, color, national origin, sex or religion in any CDBG-funded program or activity (24 CFR 570.495(b)).



▪ Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in housing-related transactions on the above basis as well as familial status and handicap (disability).

▪ Title VI of the Civil Rights Act-No exclusion from participation in federally funded programs or activities based on race, color, or national origin

▪ Section 104(b)(2) of the Housing and Community Development Act of 1974 – requires that each grantee certify that the grant will be administered in conformance with the Fair Housing Act and that the grantee will “affirmatively further fair housing” (AFFH).



• Section 504 of the Rehabilitation Act of 1973 – prohibits discrimination based on disability in any program or activity receiving federal financial assistance.

• Architectural Barriers Act of 1968 – requires that buildings constructed or assisted with federal funds be accessible to and usable by handicapped persons.



• Section 3 of the Housing and Urban Development Act of 1968 requires that employment and other economic opportunities arising in connection with housing rehab, construction or other public construction projects shall be given to low- and very low-income persons, to greatest extent feasible (24 CFR Part 135 and 24 CFR 570.487).



• States and Local Governments receiving CDBG funds must certify that they will affirmatively further fair housing (24 CFR 570.487 and 24 CFR Part 91.325 (a)(1)).


State government responsibilities:

▪ identifying impediments to fair housing choice▪ conducting fair housing planning▪ taking actions to overcome the identified

impediments▪ maintaining records ▪ assuring that local governments comply with

certifications.


Local government responsibilities:

▪ Develop proposed action to AFFH for state review and approval

▪ Develop complaint procedure▪ Develop method for documenting efforts to

promote and monitor activities▪ Other requirements may be imposed by state


Complaints/Violations of FHEO

• Any and all citizen complaints are reported to HUD Fair Housing/Equal Opportunity (FHEO) for investigation.

• Additional information can be obtained in the CDBG Recipients’ Manual or at HUD www.hud.gov


Section 3 Emphasis

• What is Section 3?• Provision of the Housing and Urban Development

Act of 1968 - 24 CFR Part 135

• Helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency

• Requires recipients of certain HUD financial assistance to provide job training, employment and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhood.


Applicability

▪ $200K Threshold for Recipient Grant Award

▪ $100K Threshold for Construction Contracts

▪ Housing rehabilitation

(including lead-based paint abatement)

▪ Housing construction

▪ Other public construction


Who are Section 3 Residents?

• Residents of the non-metro county where the HUD-assisted project is located and who have a household income that falls below HUD’s income limits.

• Public housing resident • Section 8 resident

▪ Determining Income Levels • Section 3 low income is defined as 80% or below the

median income of that area (CDBG low to moderate income standard).

• Section 3 very low income is defined as 50% or below the median income of that area (CDBG low income standard


What is a Section 3 business?

• 51% or more owned by Section 3 residents

• Section 3 residents make up 30% of its full-time permanent staff

• Provide evidence of a commitment to subcontract more than 25% of the dollar award of all subcontracts to businesses that qualify as a Section 3 business


Recipient Responsibilities

• Establish a Section 3 Compliance File• Insert Section 3 clause in Construction Contracts exceeding

$100,000• Discuss contractor obligation at Preconstruction conference• Notify Section 3 residents and businesses

Newspaper Ads Post announcements at Public Housing Authority office and

City Hall, etc• Facilitate training and employment of residents

Partnership with Department of Labor Partnership with Local Technical College

• Award contracts to Section 3 businesses• Assist with compliance among contractors


Recipient Responsibilities (cont)

• Submit Section 3 information as it is obtained in the online system.

• Additional Section 3 information can be obtained at :

http://www.hud.gov/offices/fheo/section3/section3.cfm


Contact Information

Pam Truitt, Grants ConsultantPhone: (404) 679-5240

E-Mail: [email protected]

Rick Huber, Compliance ManagerPhone: (404) 679-3174


Steed Robinson, DirectorPhone: (404) 679-3168


Fair Housing/ Equal Opportunity and Section 3

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