The Lebanon Housing Authority (LHA) recognizes the importance of Minority-owned and Women-owned Business Enterprises, Section 3 businesses, businesses owned by economically disadvantaged persons, and other small businesses to economic development within the City of Lebanon and the Grafton County, NH region.
LHA is committed to pursuing business relationships with such enterprises and using innovative approaches designed to continually improve business opportunities with these companies.
It is the policy of the LHA that Minority, Women, Small Disadvantaged Business Enterprises, and Section 3 Businesses shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal funds.
To the greatest extent feasible, selected contractors shall comply with this Policy.
LHA's Diversity Objectives are to:
- Actively and routinely seek out qualified minority-owned, women-owned business enterprises, Section 3 businesses, and other small disadvantaged businesses that can provide competitive and high-quality services for the LHA.
- Encourage participation and support of subcontractor and supplier diversity by prime contractors to LHA.
- Seek out opportunities to assist in the development and competitiveness of the targeted businesses through instruction, mentoring, and other outreach activities.
What is Section 3?
Section 3 of the Housing and Urban Development Act of 1968 recognizes that HUD funding typically results in projects/activities that generate new employment,
training, and contracting opportunities. When these opportunities are created, Section 3 requires that preference is provided to low- and very low-income residents of the
local community (regardless of race and gender), and the businesses that substantially employ them, for new employment, training, and contracting opportunities resulting
from the HUD-funded project.
What triggers Section 3 Requirements?
Dollar thresholds: All LHA contracts or subcontracts funded with Public Housing assistance regardless of the dollar amount or the type of contract are subject to Section 3 requirements.
- Section 3 regulations do not require hiring or subcontracting unless it is necessary to the project.
- Section 3 is triggered when covered projects require “new hires” or subcontracting.
- Section 3 is not an entitlement; it is an opportunity for employment, training and contracting opportunities.
Recordkeeping and Reporting Requirements
LHA is required to document actions taken to comply with the employment and training requirements of Section 3, the results of actions taken and impediments encountered.
LHA will maintain records of job vacancies, solicitation for bids or proposals, selection materials, and contract documents (including scope of work and contract amount),
in accordance with Federal or State procurement laws and regulations. The documentation will demonstrate efforts taken towards the achievement of the Section 3 numerical goals.
LHA shall submit an Annual Report to the Assistant HUD Secretary at the Office of Fair Housing and Equal Opportunity.
Each contractor/subcontractor undertaking work under a LHA contract will be subject to a compliance requirement to submit a Section 3 Plan to LHA.
This plan must include, at a minimum, the General Statement, the Current Workforce Profile and Hiring Plan, Permanent Employee Listing, and Quarterly Reporting of Section 3 initiatives.
Section 3 Goals
For all LHA contracts (this includes developer, contractor, and subcontractor contracts):
- Thirty percent (30%) of the aggregate number of new hires shall be Section 3 Residents.*
- Ten percent (10%) of all covered construction contracts shall be awarded to Section 3 Business Concerns.*
- Three percent (3%) of all covered non-construction contracts shall be awarded to Section 3 Business Concerns.*
- Efforts to meet these goals must be made to the greatest extent feasible and all efforts taken must be documented accordingly through the compliance requirement.*
Section 3 Resident: A public housing resident or an individual who resides in the metropolitan area or non-metropolitan county in which the Section 3 covered
assistance is expended and who is considered to be a low- (80% of AMI-Area Median Income) to very low-income (50% of AMI) person. Persons must be certified as
Section 3 Residents to count toward the goals listed above. Certification lasts for a period of 3 years. Link to LHA Income Limits
Section 3 Business Concern: Fifty-one percent (51%) or more of the business is owned by Section 3 Residents; or Thirty percent (30%) of the business’s permanent,
full-time employees are certified Section 3 Residents; or The Business provides evidence that it will subcontract 25 percent (25%) of the dollars awarded to certify
Section 3 Business Concerns. Businesses must be certified as a Section 3 Business Concern to count towards the goals listed above.
Compliance Requirement: Each and every contractor/subcontractor undertaking work under a LHA contract must submit a Section 3 Plan to LHA.
This plan must include, at a minimum, the General Statement, the Current Workforce Profile and Hiring Plan, Permanent Employee Listing, and Quarterly Reporting of
Section 3 initiatives.