The following list contains answers to some of the most frequently asked questions about CHA's Section 3 policies.

• What is Section 3?
• Does Section 3 apply on all contracts and purchase orders?
• What are the CHA’s Section 3 requirements?
• How do I hire CHA Section 3 residents?
• How do I identify a Section 3 business concern?
• What are the required Section 3 forms?
• Do I have to hire or subcontract on every contract and purchase order?
• Are there any Section 3 reporting requirements?
• What will happen if I do not comply with the Section 3 requirements?
• Who do I contact for assistance in completing the Section 3 forms?

Doing Business With CHA FAQ's

What is Section 3?

A HUD regulation which requires that public housing residents, low and very low-income persons, and Section 3 business concerns receive, where feasible jobs, training and economic opportunities generated by HUD assistance.  Top

Does Section 3 apply on all contracts and purchase orders?

Section 3 applies to all contracts and purchase orders with the exception of Supply & Delivery contracts and/or purchase orders, unless installation is included.  Top

What are the CHA’s Section 3 requirements?

CHA requires that bidders/proposers meet the Section 3 requirements in the following priority order:

1. Hire CHA Section 3 residents. (CHA’s policy emphasizes hiring residents first from the development where the work is being performed and secondly, from other CHA developments), or
2. Contract with a Section 3 Business/Resident-Owned Business, or
3. Provide Other Economic Opportunities.

The CHA Section 3 Policy provides detail requirements within each of the above categories.  Top

How do I hire CHA Section 3 residents?

Referrals from the CHA Section 3 Database are available through the CHA Department of Human Resources.  Top

How do I identify a Section 3 business concern?

Contact the Department of Procurement & Contracts Business Development Manager for a list of certified Resident-Owned Business concerns.  Top

What are the required Section 3 forms?

The Schedule C - Section 3 Utilization Plan must be submitted with the bid/proposal. This form is required for a submission to be considered responsive.  Top

Do I have to hire or subcontract on every contract and purchase order?

It is the CHA's goal to employ as many residents as possible. Therefore, it is our preference that you hire to meet your goal. If you cannot hire, we ask you to subcontract with a Section 3 business. If neither of these compliance routes are a possibility for you, you may be eligible to comply by offering other economic opportunities as indicated in the guidebook. For contracts under $100,000, a vendor may pursue other economic opportunities without attempting hiring or subcontracting first.  Top

Are there any Section 3 reporting requirements?

After contract/purchase award, the contractor is required to submit the following documents to the Contract Compliance Division:

If the contractor chooses to hire:

1. Payroll records must be submitted on a weekly basis. The Department of Labor form WH-347 is the desired format although other formats will be accepted as long as all the information is presented and the form bears an original signature.

If the contractor chooses to subcontract:

1. A copy of the subcontract, joint venture or partnership agreement between the Contractor and the Resident Owned Business.
2. Canceled Check Copies (both front and back) evidencing payment to the Resident-Owned Business.

If the contractor chooses to provide Other Economic Opportunities:

1. A written commitment on the contractor’s letterhead that identifies the specific opportunity, i.e., training that will lead to an employment opportunity with the contractor.  Top

What will happen if I do not comply with the Section 3 requirements?

When the contractor has elected to meet the Section 3 requirement through hiring and the Section 3 resident is employed for less than the duration of the job commitment, vendors must contribute to a fund which provides other economic opportunities in the lesser of the following amounts:

1. The amount of money which the Section 3 resident would have received if employed for the duration of the contract, or
2. 5% of the actual contract amount if a construction contract; 1.5% for other contracts.

When the contractor has elected to meet the Section 3 requirement through subcontracting, the difference between what was expended and what should have been expended is forfeited and placed into the CHA Section 3 Education and Training Fund.

In addition, Section 3 Regulation sanctions may be imposed on recipients that fail to comply with the regulations of this part and include debarment, suspension and limited denial of participation in HUD programs.  Top

Who do I contact for assistance in completing the Section 3 forms?

The Policy Monitoring Specialist in the Department of Procurement & Contracts Compliance Division assigned to the Request for Proposal (RFP), Request for Qualifications (RFQ), or Invitation for Bid (IFB).  Top

Doing Business With CHA FAQ's