4.11 4.11
CDBG\CDBG Participation Plan—7-12-2021
RESOLUTION AUTHORIZING ADOPTION OF
SECTION 3 PARTICIPATION PLAN RELATED TO COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS THROUGH NEW YORK
STATE OFFICE OF COMMUNITY RENEWAL
RESOLUTION NO.: ,2021
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, the Town of Queensbury is committed to conducting business in
accordance with all applicable Federal, State, and Local laws and regulations, and
WHEREAS, Section 3 of the Housing and Urban Development Act of 1968, as
amended, (Section 3) requires that economic opportunities generated by certain U.S. Department
of Housing and Urban Development (HUD) financial assistance for housing and community
development programs be directed to low and very low income persons, particularly those
who are recipients of government assistance for housing, and business concerns which provide
economic opportunities to low and very low income persons, and
WHEREAS, HUD holds the New York State Office of Homes and Community Renewal
(HCR) accountable for compliance with Section 3 requirements for recipients of HUD funds in
New York State, including the Community Development Block Grant Program (CDBG), and
WHEREAS, the Town of Queensbury has been a past recipient of HUD funds through
the CDBG program and intends to apply for CDBG funds in July 2021, and
WHEREAS, the Senior Planner has prepared a Section 3 Participation Plan which
establishes administrative procedures and processes to comply with Section 3 and such
Participation Plan is presented at this meeting,
NOW, THEREFORE BE IT
RESOLVED, that the Queensbury Town Board approves and authorizes adoption of
the "Town of Queensbury Section 3 Participation Plan, For Section 3 Covered Contracts" in
substantially the form presented at this meeting, in compliance with Section 3 requirements for
recipients of HUD funds in New York State, including the Community Development Block
Grant Program, and
BE IT FURTHER,
RESOLVED, that the Town Board authorizes and directs the Town Supervisor and
Senior Planner to take such other and further actions as may be necessary to effectuate the
terms of this Resolution.
Duly adopted this 121h day of July, 2021, by the following vote:
AYES
NOES
ABSENT
Section 3 Participation Plan
TOWN OF QUEENSBURY
For Section 3 Covered Contracts
Background:
Section 3 of the Housing and Urban Development Act of 1968, as amended, ("Section 3")
requires that economic opportunities generated by certain U.S. Department of Housing
and Urban Development financial assistance for housing and community development
programs be directed to low-and very low-income persons, particularly those who are
recipients of government assistance for housing, and business concerns which provide
economic opportunities to low- and very low income persons.
Pursuant to Section 3 of the Housing and Urban Development Act of 1968, as amended
and 24 CFR Part 135, The Units of General Local Government(UGLG) adopts this
Section 3 Participation Plan for Section 3 Covered Contracts. The policy will provide
direction for implementing Section 3, when required.
Policy Statement:
The Town of Queensbury shall provide opportunities to low- and very low-income
persons residing in the State of New York (as defined in § 135.5 of 24 CFR Part 135) and
to businesses meeting the definition of"Section 3 Business Concern" (as defined by 24
CFR Part 135). Accordingly, the Town of Queensbury shall implement policies and
procedures to ensure that Section 3, when required, is followed and develop programs
and procedures necessary to implement this policy covering all procurement contracts
where labor and/or professional services are provided. This policy shall not apply to
contractors who only furnish materials or supplies through Section 3 covered assistance.
It will apply to contractors who install materials or equipment. (See the definition of
"Section 3 Covered Contracts" below.) There is nothing in this policy that should be
construed to require the employment or contracting of a Section 3 resident or contractor
who does not meet the qualifications of the position to be filled or who cannot fulfill the
contract requirements.
1 124 CFR 135.1
Definitions:
The Town of Queensbury incorporates into this policy the definitions contained in §
13 5.5 of 24 CFR Part 13 5.
Defined Terms of Policy:
Section 3— Section 3 is a provision of the Housing and Urban Development Act of 1968,
which recognizes that HUD funds are typically one of the largest sources of federal
funding expended in communities through the form of grants, loans, entitlement
allocations and other forms of financial assistance. Section 3 is intended to ensure that
when employment or contracting opportunities are generated because a covered project
or activity necessitates the employment of additional persons or the awarding of contracts
for work, preference must be given to low- and very low-income persons or business
concerns residing in the community where the project is located.
Section 3 Recipient—means any entity which receives Section 3 covered assistance,
directly from HUD or from another recipient and includes, but is not limited to, any State,
unit of local government, PHA, IHA, Indian tribe, or other public body, public or private
nonprofit organization, private agency or institution, mortgagor, developer, limited
dividend sponsor, builder, property manager, community housing development
organization, resident management corporation, resident council, or cooperative
association. Recipient also includes any successor, assignee or transferees of any such
entity, but does not include any ultimate beneficiary under the HUD program to which
Section 3 applies and does not include contractors.
Section 3 Resident—A section 3 resident is:
• a public housing resident; or
• a low- or very low-income person residing in the metropolitan area or non-
metropolitan county in which the Section 3 covered assistance is expended.
Section 3 Business Concern(s)—Section 3 Business Concerns are businesses that can
provide evidence that they meet one of the following:
• 51% or more owned by Section 3 residents; or
• At least 30% of its full time employees include persons that are currently Section
3. residents, or within three years of the date of first employment with the business
concern were Section 3 residents; or
• Provides evidence, as required, 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 in the above two paragraphs.
Section 3 Covered Assistance—Public and Indian housing development, operating or
capital funds; or other housing assistance and community development assistance
expended for housing rehabilitation, housing construction or other public construction
projects, such as: CDBG, HOME, 202/811, Lead-Based Paint Abatement, etc.
The following definition for Section 3 Covered Assistance comes from 24 CFR 135.5:
Public and Indian housing development assistance provided pursuant to section 5 of the
1937 Act;
1) Public and Indian housing operating assistance provided pursuant to
section 9 of the 1937 Act;
2) Public and Indian housing modernization assistance provided pursuant to
section 14 of the 1937 Act;
3) Assistance provided under any HUD housing or community development
program that is expended for work arising in connection with:
i. Housing rehabilitation (including reduction and abatement of lead-
based paint hazards, but excluding routine maintenance, repair and
replacement);
ii. Housing construction; or
iii. Other public construction project which includes other buildings or
improvements, regardless of ownership.
Section 3 Covered Contract—means a contract or subcontract (including a professional
service contract) awarded by a recipient or contractor for work generated by the
expenditure of Section 3 Covered Assistance, or for work arising in connection with a
Section 3 Covered Project. "Section 3 Covered Contracts" do not include contracts
awarded under HUD procurement program, which are governed by the Federal
Acquisition Regulation System (see 48 CFR, Chapter 1). "Section 3 Covered Contracts"
do not include contracts for the purchase of supplies and materials. However, whenever a
contract for materials includes the installation of the materials, the contract constitutes a
Section 3 Covered Contract. For example, a contract for the purchase and installation of a
furnace would be a Section 3 Covered Contract because the contract is for work (i.e., the
installation of the furnace) and thus is covered by Section 3.
Section 3 Covered Project—A section 3 covered project involves the construction or
rehabilitation of housing (including reduction of lead-based paint hazards), or other
public construction such as street repair, sewage line repair or installation, updates to
building facades, or other public construction, etc.
Section 3 Covered Community Planning and Development Funding—Community
Development Block Grants (CDBG), Home Investment Partnership Assistance (HOME),
Emergency Shelter Grants (ESG),Neighborhood Stabilization Programs (NSP), and
certain grants awarded under HUD Notices of Funding Availability (NOFA). The
requirements for Section 3 only apply to the portion(s) of covered funding that were used
for project/activities involving housing construction, rehabilitation, demolition, or other
public construction.
Section 3 Thresholds - The requirements of Section 3 are applicable to HUD's direct
"recipients"—for Section 3 covered project(s) for which the amount of the assistance is
more than$200,000. 2
Contractors and Subcontractors are also subject to Section 3's requirements when
performing gnE type of activity on Section 3 covered activity for which the amount of
the assistance is in excess of$200,000 and the contract or subcontract exceeds
$100,000.3
If a recipient receives Section 3 covered housing construction or public infrastructure
or community development assistance in excess of$200,000, but no individual contract
exceeds $100,000, Section 3 requirements will only apply to the recipient.
Finally, it should be noted that there are no thresholds for Section 3 covered Public and
Indian Housing assistance.`That is, all activities related to Public and Indian Housing
assistance are covered by Section 3 regardless of the amount.
Responsibilities:
1. The UGLG that receives community development or housing assistance covered
by Section 3 has the responsibility to comply with Section 3 in its own operations.
This responsibility includes:
• Notifying Section 3 residents and businesses about job opportunities and
contracts generated by Section 3 covered assistance so that residents may
seek jobs and businesses may submit bids/proposals for available
contracts;
• Notifying potential contractors of the objectives of Section 3 and ways in
which each contractor can assist the sub-recipient to meet its goal;
'-See 24 CFR 135.3 (a)(3)(ii).
124 CFR 135.3 at 135(3)(ii)(B).
4 Id. at 135.3(a) (3) (i).
• Facilitating the training and employment of Section 3 residents and the
award of contracts to Section 3 business concerns; and
• Documenting the action that the sub-recipient takes to comply with the
Section 3 requirements, the results of the actions, and impediments, if any.
2. The UGLG has a responsibility to "ensure compliance" of their contractors and
subcontractors. This means that a sub-recipient must:
• Notify contractors of their responsibilities under Section 3 including,but
not limited to, incorporating the Section 3 Clause in contract documents.
• Refrain from entering into contracts with contractors that are in violation
of the regulations in 24 CFR Part 135.
• Respond to complaints made to the recipient by Section 3 residents or
• Business concerns that the sub-recipient, a contractor or subcontractor,is
not in compliance with 24 CFR Part 135.
• Cooperate with HUD in obtaining the compliance of contractors and
subcontractors when allegations are made that the sub-recipient's
contractors and subcontractors are not in compliance with the regulation of
24 CFR Part 135.
Goals:
All contractors undertaking Section 3 covered projects and activities are expected to meet
the Section 3 requirements. To demonstrate compliance with the "greatest extent
feasible" requirement of Section 3, contractors must meet the goals set forth below for
providing training, employment and contracting opportunities to Section 3 residents and
Section 3 business concerns.To meet the goals, contractors must select Section 3
residents based on the following priorities pursuant to § 135.34, 24 CFR Part 135:
• First Priority- Residents of the development where the work is to be
performed.
• Second Priority - Other residents of the neighborhood where the work is to
be performed.
• Third Priority - Other residents of the neighborhood who are participants
in HUD-Youthbuild or others federal, state, and local job programs being
carried out in the city or county area.
• Fourth Priority - Other persons from the project metropolitan area who
meet the definition of Section 3 resident contained in § 135.5 of 24 CFR
Part 135.
Employment:
All contractors will seek low- or very low-income persons residing in the property
metropolitan area for 30% of all new hires. When applicable, the contractor must show
evidence of seeking project residents for 15% of the new hires.
Eligibility for employment or contracting -nothing in this policy shall be construed to
require the employment or contracting of a Section 3 resident or contractor who does not
meet the qualifications of the position to be filled or who cannot perform the contract.
Preference for Section 3 Business Concerns:
Preference shall be awarded to Section 3 Business Concerns according to the following
system:
1. Where the Section 3 Covered Contract is to be awarded based upon the lowest
price, the contract shall be awarded to the qualified Section 3 Business Concern
with the lowest responsive quotation, if it is reasonable and no more than 10
percent higher than the quotation of the lowest responsive quotation from any
qualified source. If no responsive quotation by a qualified Section 3 Business
Concern is within 10 percent of the lowest responsive quotation from any
qualified source, the award shall be made to the source with the lowest quotation.
If it is reasonable and no more than 10 percent higher than the quotation of the
lowest responsive quotation from any qualified source. If no responsive quotation
by a qualified Section 3 Business Concern is within 10 percent of the lowest
responsive quotation from any qualified source, the award shall be made to the
source with the lowest quotation.
2. Where the Section 3 Covered Contract is to be awarded based on factors other
than price, a request for quotations shall be issued by developing the particulars of
the solicitation, including a rating system for the assignment of points to evaluate
the merits of each quotation. The solicitation shall identify all factors to be
considered, including price or cost. The rating system shall provide for a range of
15 to 25 percent of the total number of available rating points to be set aside for
the provision of preference for Section 3 Business Concerns. The purchase order
shall be awarded to the responsible firm whose quotation is the most
advantageous, considering price and all other factors specified in the rating
system.
Competitive Bids: Procurement by Sealed Bids (Invitations for Bids)
Preference in the award of Section 3 Covered Contracts that are awarded under a sealed
bid process may be provided as follows:
1. Bids shall be solicited from all businesses (i.e. Section 3 Business Concerns and
non- Section 3 Business Concerns). An award shall be made to the qualified
Section 3 Business Concern with the highest priority ranking(as defined in 24
CFR Part 135) and with the lowest responsive bid if that bid:
A) is within the maximum total contract price established in The Town of
Queensbury's budget for the specific project for which bids are being taken; and
B) is not more than "X" higher than the total bid price of the lowest responsive
bid from any responsible bidder. "X" is determined as follows:
X=lessee-of
When the lowest responsive bid is less than$100,000........ 10% of that bid or
$9,000
When the lowest responsive bid is:
At least $100,000, but less than $200,000........9% of that bid or$16,000
At least $200,000, but less than$300,000........8% of that bid or$21,000
At least $300,000, but less than$400,000........7% of that bid or$24,000
At least$400,000, but less than $500,000........6% of that bid or$25,000
At least $500,000, but less than$1 million......... 5% of that bid or$40,000
At least $1 million, but less than$2 million. ........4% of that bid or$60,000
At least $2 million, but less than$4 million. ........3% of that bid or$80,000
At least$4 million, but less than$7 million.........2% of that bid or$105,000
$7 million or more ........1.5% of the lowest responsive bid, with no dollar limit.
2. If no responsive bid by a Section 3 Business Concern meets the requirements of
paragraph 1 of this section, the contract shall be awarded to a responsible bidder
with the lowest responsive bid.
3. In both paragraphs 1 and 2 above, a bidder, to be considered as responsible,must
demonstrate compliance with the "greatest extent feasible" requirement of
Section 3.
Compliance:
HUD holds HCR accountable for compliance with Section 3 requirements. In contracts
entered into with HCR, recipients agree to comply with Section 3. When a housing
partner is unable to meet Section 3 goals, HCR will place the burden of proving
compliance with Section 3 on the recipient.
The minimum numerical goal for employment 30 percent of the aggregate number of
new hires shall be Section 3 residents annually—i.e., 1 out of 3 new employees needed to
complete a Section 3 covered project/activity shall be a Section 3 resident.
The minimum goals for contracting are:
• Ten percent of the total dollar amount of all Section 3 covered contracts
for building trades work for maintenance, repair, modernization or
development of public or Indian housing or building trades work arising in
connection with housing rehabilitation, housing construction and other
public construction, shall be awarded to Section 3 businesses; and
• Three percent of the total dollar amount of all non-construction Section 3
covered contracts, shall be awarded to Section 3 businesses.
Safe harbor and compliance determinations: In the absence of evidence to the contrary
(i.e., evidence that efforts to the "greatest extent feasible" were not expended), if the
Town of Queensbury or contractor meets the minimum numerical goals shown above, the
recipient or contractor is considered to have complied with Section 3 preference
requirements.
The Town of Queensbury will be expected to demonstrate why it was not feasible to
meet the goals. At a minimum, if recipients of Section 3 Assistance are unable to meet
their Section 3 training, hiring, and contracting goals, they should sponsor or participate
in upward mobility programs, hire eligible residents in trainee positions with regard to
training and employment, or form Section 3 joint ventures with various local
employment agencies.
Data Collection and Reporting;
The Town of Queensbury-will collect and submit required Section 3 data and complete
Section 3 reporting requirements.
Certification:
I certify that to the best of my knowledge and belief all of the information on this form is
correct. I also understand that failure to report completely and accurately may result in
sanctions under my policy, including but not limited to voidance of the policy, and in
criminal or civil penalties.
Signed by Title
Date Attest
Reviewed by Approved by
Comments: