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1 RESOLUTION NO. 9,513
2 A RESOLUTION ESTABLISHING A HUD
3 SECTION 3 /FIRST SOURCE OPPORTUNITY
4 POLICY PROGRAM, TO ENSURE EFFECTIVE
5 IMPLEMENTATION OF HUD SECTION 3
6 REQUIREMENTS REGARDING EMPLOYMENT
7 AND ECONOMIC OPPORTUNITIES GENERATED
8 BY CERTAIN HUD FINANCIAL ASSISTANCE
9 FOR HOUSING AND COMMUNITY
10 DEVELOPMENT PROGRAMS; AND FOR OTHER
11 PURPOSES.
12 WHEREAS, the primary responsibility of the city government of
13 Little Rock is to provide the basic services to its citizens; and
14 WHEREAS, the continued delivery of those services depends
15 upon a sound economy to provide the tax base to support those
16 services; and
17 WHEREAS, the City of Little Rock ( "City ") Board of Directors
18 has already recognized that economic development is within the
19 scope of public purpose; and
20 WHEREAS, the goal of economic development is to create new
21 jobs; and
22 WHEREAS, the enactment of a policy to create a pool of
23 employable persons who are residents of the City, to be called
Z4 upon as a source in filling jobs or other economic opportunities
25 created or maintained as a direct result of certain Housing and
26 Urban Development ("HUD°) financial assistance for housing and
27 community development programs, will help to advance, restructure
28 and revitalize the economic well -being of the City; and
29 WHEREAS, such a policy known as "HUD Section 3 /First Source
30 Opportunity Policy" could extend to certain business and economic
31 endeavors that have had any economic stimulation by certain HUD
32 financial assistance for housing and community development
33 programs; and
34 WHEREAS, the creation of new jobs through the expenditure of
35 public funds provides the opportunity to address the problems of
36 the structurally unemployed without mandating to the employer who
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1 is to be hired.
2 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIREC`T`ORS OF
3 THE CITY OF LITTLE ROCK, ARKANSAS;
4 SECTION 1. The City of Little Rock hereby adopts a HUD
5 Section 3 /First Source Opportunity policy relating to employment
6 and other economic opportunities that are generated by Section 3
7 covered assistance for housing and community development programs.
8 Employment and economic opportunities generated by Section 3
9 covered assistance, activities, contracts or projects shall, to
10 the greatest extent feasible, be given to low and very low income
11 persons, particularly to those persons who are recipients of
12 government assistance for housing, and to Section 3 business
13 concerns that provide employment and economic opportunities for
14 low and very low income persons.
15 SECTION 2. Definitions. The following words and phrases are
16 defined pursuant to 59 Fed. Reg. 33,866 (1994) (to be codified at
17 24 C.F.R. S 135):
18 1. "Business Concern" shall mean a business entity formed in
19 accordance with State law, and which is licensed under State,
20 county, or municipal law to engage in the type of business
21 activity for which it was formed.
22 2. "Contractor" shall mean any entity which contracts to
23 perform work generated by the expenditure of Section 3 covered
24 assistance, or for work in connection with a Section 3 covered
25 project.
26 3. "Employment Opportunities Generated by Section 3 Covered
27 Assistance" shall mean all employment opportunities generated by
28 the expenditure of Section 3 covered public and Indian housing
29 assistance (i.e., operating assistance, development assistance and
30 modernization assistance). With respect to Section 3 covered
31 housing and community development assistance, this term shall mean
32 all employment opportunities arising in connection with Section 3
33 covered projects, including management and administrative jobs
34 connected with the Section 3 covered project. Management and
35 administrative jobs include architectural, engineering or related
36 professional services required to prepare plans, drawings,
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1 specifications, or work write -ups; and jobs directly related to
2 administrative support of these activities (i.e., construction
3 manager, relocation specialist, payroll clerk).
4 4. "Housing and Community Development Assistance„ shall mean
5 any financial assistance provided or otherwise made available
6 through a HUD housing or community development program through any
7 grant, loan, loan guarantee, cooperative agreement, or contract,
8 and includes community development funds in the form of community
9 development block grants and loans guaranteed under Section 108 of
10 the Housing and Community Development Act of 1974, as amended.
11 Housing and community development assistance does not include
12 financial assistance provided through a contract of insurance or
13 guaranty.
14 5. "Metropolitan Area" shall mean a metropolitan statistical
15 area ("MSA"), as established by the Office of Management and
16 Budget.
17 6. "Recipient" shall mean any entity which receives Section 3
i8 covered assistance, directly from HUD or from another recipient.
19 "Recipient" also includes any successor, assignee or transferee of
20 any such entity, but does not include any ultimate beneficiary
21 under the HUD program to which Section 3 applies and does not
22 include contractors.
23 7. "Section 3" shall mean Section 3 of the Housing and Urban
24 Development Act of 1968, as amended [12 U.S.C. § 1701u (1992)].
25 S. "Section 3 Business Concern" shall mean a business
26 concern:
27 (1) that is 51 percent or more owned by Section 3 residents;
28 or
29 (2) whose permanent, full -time employees include persons, at
30 least 30 percent of whom are currently Section 3 residents, or
31 within three years of the date of first employment with the
32 business concern were Section 3 residents; or
33 (3) that provides evidence of a commitment to subcontract in
34 excess of 25 percent of the dollar award of all subcontracts to be
35 awarded to business concerns that meet the qualifications set
36 forth in paragraphs (1) or (2) in this definition of "Section 3
I Business Concerns.
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2 9. "Section 3 Covered Activity" shall mean any activity which
3 is funded by Section 3 covered assistance and public and Indian
4 housing assistance.
5 lo. "Section 3 Covered Assistance" shall mean public and
6 Indian housing development assistance provided pursuant to Section
7 5 of the United States Housing Act of 1937 ( "the 1937 Act ");
8 public and Indian housing operating assistance provided pursuant
9 to Section 9 of the 1937 Act; and public and Indian housing
10 modernization assistance pursuant to Section 14 of the 1937 Act.
11 Section 3 covered assistance shall also mean housing assistance
12 (including Section 8 assistance, and including other housing
13 assistance not administered by the Assistant Secretary of Housing)
14 and community development assistance that is used for housing
15 rehabilitation, housing construction, or other public construction
16 projects.
17 11. "Section .3 Covered Contract" shall mean a contract or
18 subcontract (including a professional service contract) awarded by
19 a recipient or contractor for work generated by the expenditure of
20 Section 3 covered assistance, or for work arising in connection
21 with a Section 3 covered project. "Section 3 Covered Contracts" do
22 not include contracts awarded under HUD's procurement program,
23 which are governed by the Federal Acquisition Regulation System.
24 "Section 3 Covered Contracts" also do not include contracts for
25 the purchase of supplies and materials. However, whenever a
26 contract for materials includes the installation of the materials,
27 the contract constitutes a "Section 3 Covered Contract."
28 12. "Section 3 Covered Project" shall mean the construction,
29 reconstruction, conversion or rehabilitation of housing, other
30 public construction which includes buildings or improvements
31 (regardless of ownership) assisted with housing or community
32 development assistance.
33 13. "Section 3 Resident" shall mean:
34 (1) a public housing resident; or
35 (2) an individual who resides in the metropolitan area or
36 nonmetropolitan county in which the Section 3 covered assistance
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1 is expended, and who is:
2 (a) A low- income person, as this term is defined in Section
3 3(b)(2) of the 1937 Act. This section of the 1937 Act defines a
4 low- income person to mean families (including single persons)
5 whose incomes do not exceed 80 percentum of the median income for
6 the area, as determined by the HUD Secretary, with adjustments for
7 smaller and larger families, except that the Secretary may
8 establish income ceilings higher or lower than 80 percentum of the
9 median for the area on the basis of the Secretary's findings that
10 such variations are necessary because of prevailing levels of
11 construction costs or unusually high or low- income families; or
12 (b) a very low- income person, as this term is defined in
13 Section 3(b)(2) of the 1937 Act. This section of the 1937 Act
14 defines a very low- income person to mean families (including
15 single persons) whose incomes do not exceed 50 percentum of the
16 median family income for the area, as determined by the HUD
17 Secretary with adjustments for smaller and larger families, except
18 that the Secretary may establish income ceilings higher or lower
19 than 50 percentum of the median for the area on the basis of the
20 Secretary's findings that such variations are necessary because of
21 unusually high or low family incomes.
22 The person seeking the training and employment preference
23 provided by Section 3 bears the responsibility of providing
24 evidence (if requested) that the person is eligible for the
25 preference.
26 14. "Section 8 Assistance" shall mean the assistance provided
27 under Section 8 of the 1937 Act pursuant to 24 C.F.R. § 882,
28 Subpart G.
29 15. "Subcontractor" shall mean any entity (other than a
30 person who is a an employee of the Contractor) which has a
31 contract with a contractor to undertake a portion of the
32 contractor's obligation for the performance of work generated by
33 the expenditure of Section 3 covered assistance, or arising in
34 connection with a Section 3 covered project.
35 SECTION 3. HUD Section 3 /First Source Jobs Policy Created.
36 The City of Little Rock will encourage HUD Section 3 /First Source
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1 Employment Practices to ensure that employment and other economic
2 opportunities generated by Section 3 covered assistance,
3 activities, contracts or projects shall, to the greatest extent
4 feasible, and consistent with existing federal, state and local
5 laws and regulations; be directed to low and very low- income
6 persons, particularly those who are recipients of government
7 assistance for housing, and to business concerns which provide
8 employment and economic opportunities to low and very -low income
9 persons.
10 SECTION 4. The City recognizes the Employment Security
11 Department ("ESD ") as being the First Source agency to serve
12 Section 3 residents regarding this endeavor.
13 SECTION 5. The City recognizes that, pursuant to regulations
14 implementing Section 3, efforts to employ qualified Section 3
15 residents, to the greatest extent feasible, must be made at all
16 job levels.
17 SECTION 6. The City recognizes its responsibility, pursuant
18 to regulations implementing Section 3, to ensure that contractors
19 and subcontractors performing work for the City comply with
20 Section 3. The City will not enter into any contract with any
21 contractor where the City has notice or knowledge that the
22 contractor has been found in violation of Section 3 and
23 regulations at 59 Fed. Reg. 33,866 (1994), now existing or
24 hereafter amended.
25 SECTION 7. The City recognizes the designation of certain
26 community groups which have an interest in employment of low and
27 very low- income persons. These community groups will assist the
28 ESD by identifying and qualifying job applicants. These groups
29 will be officially designated as referral agencies by the City.
30 SECTION 8. The ESD will contact HUD Section 3 /First Source
31 applicants to make appropriate job skills determinations and
32 direct referrals to companies participating in the HUD Section
33 3 /First Source Opportunity Policy. Referrals will be identified in
34 the ESD computer system to allow tracking of services. HUD Section
35 3 /First Source applicants meeting the minimum skills required by
36 the job order will be given interview times until the job is
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filled. Only those applicants that are identified as having at
least the minimum job skill level will be referred.
SECTION 9. HUD Section 3 /First Source Referral Agencies will
assist by identifying qualified job applicants and referring them
to the ESD on designated referral forms which include the name,
address, telephone number and specific qualifications necessary
for participation in the HUD Section 3 /First Source Opportunity
Policy Program.
SECTION 10. The City will monitor the HUD Section 3 /First
Source Opportunity Policy Program by contacting the ESD and
participating companies to determine if the policy should be
modified or expanded. An annual report will be provided to the
City Manager indicating the results of this opportunity policy.
The City will be proactive and market the HUD Section 3 /First
Source Opportunity Policy Program to other businesses through the
Chamber of Commerce and others who wish to assist economically
disadvantaged persons.
SECTION 11. This HUD Section 3 /First Source Opportunity
Policy sets forth the City's good faith efforts to comply with
Section 3 of the Housing and Urban Development Act of 1968, as
amended and regulations promulgated pursuant thereto.
SECTION 12. This policy shall have full force and effect on
November 1, 1995
ADOPTED: October 3, 1995
"PROVED AS TO FORM:
-_• ' /CARPENTER ,
CITY ATTORNEY
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