PLANNING AND DEVELOPMENT SERVICES DEPARTMENT HOUSING AND COMMUNITY DEVELOPMENT DIVISION

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1 CITY OF BOISE, IDAHO PLANNING AND DEVELOPMENT SERVICES DEPARTMENT HOUSING AND COMMUNITY DEVELOPMENT DIVISION APPLICATION SECTION 3 BUSINESS 1025 South Capitol Boulevard Boise, ID (208) TTY: (800) THIS DOCUMENT CAN BE PROVIDED IN A FORMAT ACCESSIBLE TO PERSONS WITH DISABILITIES AND/OR PERSONS WITH LIMITED ENGLISH PROFICIENCY UPON REQUEST. The City of Boise prohibits discrimination on the basis of race, color, national origin, religion, gender, familial status, disability, age, sexual orientation and gender identity/expression.

2 City of Boise Section 3 Business Registration Table of Contents Section 3 Business Repository 1 Staff Resources 2 What is Section 3 2 Projects that must follow Section 3 2 Policies 2 Section 3 Business 3 Section 3 Resident 3 Section 3 Business Preference 3 Contractors who do not want to bid as a Section 3 Business 3 Contractors seeking Section 3 Business designation 4 Section 3 Application Information 4 Section 3 Utilization Plan Information 5 City of Boise Housing & Community Development Section 3 Goals 5 City of Boise Housing & Community Development Section 3 Outreach 6 Finding Section 3 Residents for Employment 6 Assuring Compliance with Section 3 Policies 7 ATTACHMENTS Section 3 Business Checklist Section 3 Income Guidelines Section 3 Business Application

3 City of Boise Section 3 Business Repository The City of Boise s Housing and Community Development Division (HCD) is soliciting for interested business entities that would like to be placed on a pre-qualified registry for Section 3. Individuals or firms to who wish to bid on possible future construction and non-construction projects financed with federal funds received from the U.S. Department of Housing and Urban Development (HUD) and other City funding are encouraged to respond. Companies or individuals suspended or debarred from work on government contracts or subcontracts cannot be considered for this registry. The City of Boise encourages any company or individual to also register as a vendor and receive automatic bid notifications and bid documents by going to DemandStar or by calling tollfree This is in addition to submitting an application to the City of Boise s Housing and Community Development Division as a Section 3 Business. Section 3 is a provision of the Housing and Urban Development Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods. A Section 3 business concern is a business that is owned by fifty-one percent (51%) or more Section 3 residents, employs Section 3 residents as thirty percent (30%) of its fulltime, permanent staff; or HUD YouthBuild programs being carried out in Boise which Section 3 covered assistance is expended. Section 3 also provides opportunities for qualified, low-income business owners to receive preference in bidding on HUD-funded contracts. Section 3 residents are households earning at or below the following income guidelines: Household Size Annual Gross Income 1 Person $33,600 2 Person $38,400 3 Person $43,200 4 Person $48,000 5 Person $51,850 6 Person $55,700 7 Person $59,550 8 Person $63,400 1 City of Boise Section 3 Business Application

4 Boise City Housing and Community Development Division Staff Resources: AnaMarie C. Guiles Grants and Programs Manager City of Boise Housing and Community Development 1025 S Capitol Boulevard 1025 S Capitol Boulevard Boise, ID Boise, ID Gary Campbell Rehabilitation Coordinator City of Boise Housing and Community Development (208) ext. 123 (208) ext What is Section 3? Section 3 of the Housing and Urban Development Act of 1968, (12U.S.C.1701u) and implementing regulations at 24 C.F.R.135 state the purpose of Section 3 of the Housing and Urban Development Act of 1968 is to ensure that employment and other economic opportunities generated by certain U.S. Department of Housing and Urban Development (HUD) financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very low income persons. The current thresholds for low and very low income persons can be found in this packet or by contacting the City s Housing and Community Development Division. City of Boise has set forth policies to ensure these regulations are met. What projects must follow the City s Section 3 Policies? All public construction projects for which the amount of HUD sourced funding exceeds $200,000 and the contractor/subcontractor contract exceeds $100,000 must adhere to Section 3 Policies. HCD manages and sponsors programs supported with HUD funding. Boise Section 3 Policies City of Boise s Section 3 policies require that employment opportunities created in conjunction with HUD funded projects are extended to low and very low income residents of the area where the project is being implemented. In essence, Section 3 eligible residents are to be extended preference in new hiring situations which result from HUD sourced public construction funds. City of Boise encourages businesses to hire from Section 3 pools, and to apply for official Section 3 Business designation. Once designated as a Section 3 Business, City of Boise s HCD extends preference in contracting, sub contracting, and other funded activities. These Section 3 Businesses must meet 1) self certified application requirements and 2) submit an approved Section 3 Utilization Plan. The City reserves the right to refuse any bid as deemed unacceptable or insufficient. City of Boise also encourages partnerships for outreach, training, and hiring with local workforce agencies. 2 City of Boise Section 3 Business Application

5 What is a Section 3 Business? Section 3 Business status can be achieved by meeting one of the criteria below. A majority 51% or more ownership of applicant s business shall be held by low to very low income residents of the designated area. At least 30% of the employees of the business are low to very low income residents of the designated area. More than 25% of the subcontracts with other businesses must meet one of the two options above. Please note that in order to receive bid preference as a Section 3 Business, contractors must submit a Section 3 Application prior to bidding and a Section 3 Utilization Plan at bidding. This document includes the Application. What is a Section 3 Resident? A Section 3 resident is defined as any residents in assisted housing, and low or very low income person residing within City of Boise. Low income is defined at 80% of the area median income based on family size. Maximum household incomes change annually. Please verify you are using current median income numbers. Income guidelines are attached to this document. How does Section 3 Business Preference work? Businesses interested in receiving Section 3 preference through the City of Boise s HCD must submit a Section 3 Application to verify they are a qualified business, AND must submit a Section 3 Business Utilization Plan when responding to a bid request for the project in which they are bidding that shows how they will implement the Section 3 policy. Bid preference on HUD-funded projects will only be given to those businesses qualified as Section 3 Businesses. Prior to bidding on a project those wishing to receive Section 3 preference must submit a Section 3 application. Once the application is approved the company will receive a letter of approval. They must include this letter in their bid to receive Section 3 preference. The letter will be valid for three years. If awarded a contract with Section 3 preference, the company must then submit a Section 3 Utilization plan to show how they will implement Section 3 criteria throughout the project. Bids for HUD funded projects will be solicited from all businesses (Section 3 Businesses and non Section 3 Businesses). An award shall be made to the qualified Section 3 Business with the lowest responsible bid so long as it is within 5% of the overall lowest responsive bid.* If no Section 3 Business has submitted a bid, or if the lowest Section 3 Business bid is not within the percentage criteria, the contract shall be awarded to the responsible firm (either Section 3 or non Section 3) whose bid is determined most advantageous, considering price and all other factors specified in the RFP. *For projects more than $500,000 the percentage differential is reduced 1% per each $500,000 of the project. What about contractors who do not want to bid as a Section 3 Business? City of Boise recognizes the importance of making sure low and very low income residents benefit from any and all HUD sourced projects built in the 3 City of Boise Section 3 Business Application

6 community. Regardless of Section 3 status or bid preference, all contractors and sub contractors are expected to hire such residents when eligible. In addition, they are required to document all new hire and subcontracting activity and submit an annual report every July 1 (until project completion). Contractors who do not want to submit bids as a Section 3 Business do not need to submit Section 3 Applications or Section 3 Utilization Plans they simply submit a bid as outlined in the bid notice. What is required of contractors seeking Section 3 Business designation? 1. In addition to following hiring, subcontracting and annual reporting requirements, those businesses seeking Section 3 Business status must submit quarterly reports due January 1, April 1, July 1, and October The contractor must submit a Section 3 Business Application before bidding on a project. Businesses do not need to submit the application for every project. Section 3 Business status is valid for three (3) years. After the three year period has expired, or as otherwise requested by the City, the business must re submit a Section 3 Business Application. Section 3 Applications must be submitted and approved before bidding on a contract in order to receive Section 3 preference. Please consider application processing time and submit applications well in advance of bidding on a project. 3. To receive Section 3 preference on a bid award, businesses must also submit a Section 3 Utilization Plan in response to a bid solicitation. Section 3 Utilization Plans must be submitted individually with each project. Section 3 Utilization Plans are created by the bidding contractor/business, but must include City specified criteria. The Utilization Plan must be approved before the contract for the project is signed. Forms to complete for the Utilization Plan will be included in the bid solicitation. Once it is determined that the business meets the Section 3 Business requirements, they can be given priority on project awards if the bid falls within prescribed criteria. Both the Application and the Utilization Plan must be approved by the City s HCD office. Section 3 Business Application Information Section 3 Business Applications must be re submitted every three (3) years or as otherwise requested by the City. Section 3 Business Applications can be obtained in the Housing & Community Development office, attached to this document, or online at To qualify as a Section 3 Business, one of the following three criteria must be met: 1. A majority (51% or more) ownership of the applicant business shall be held by low to very low income residents of City of Boise. 2. At least thirty percent (30%) of employees of the applicant business are low to very low income residents of City of Boise. 3. More than twenty five percent (25%) of all contract work shall be performed by businesses that meet either of the conditions set forth above. 4 City of Boise Section 3 Business Application

7 The Application must be submitted to HCD well in advance of the scheduled bid opening on qualified Section 3 projects. Please note, if any changes/supplementary documents are requested on the application it may result in delayed Section 3 approval. Once a business application has been approved, the business is free to bid on projects as a Section 3 Business. The business must include a copy of the Section 3 status approval in their bids. However, if a business is selected to receive Section 3 preference on a bid they must also develop and submit a Section 3 Utilization Plan for the specific project before a contract can be signed. Section 3 Business Utilization Plan Information Once bids are opened, the City will issue a notice of intent to award the project. If the project is being awarded to a business with Section 3 preference, the business must submit a Section 3 Utilization plan to HCD before the contract will be signed. The City will not move forward with funding of any Section 3 qualified projects until the Section 3 Application has been approved, and the Section 3 Utilization Plan is accepted by HCD. If the Utilization Plan submitted is not acceptable, the business will be required to make adjustments and resubmit until it is deemed acceptable. It is the business responsibility to make sure the Utilization Plan is submitted with adequate time to make needed adjustments. The Section 3 Utilization plan will be bound in the contract with the City. All subcontractors of the general contractor with contracts $100,000 or more must likewise comply with the Section 3 Utilization Plan. A Section 3 Utilization Plan packet is available at The plan should include: Identification of the project area. Specific information about the current workforce. Specific plan for hiring Section 3 eligible residents, including all outreach efforts. Specific plan for engaging Section 3 Businesses. Firm commitment to include the Section 3 Plan as part of all bids (once approved by the City) which identifies activities to comply with the Section 3 program and the City s Section 3 clause. Firm commitment to conduct aggressive outreach and notification to potential Section 3 residents and businesses of hiring opportunities. Firm commitment to provide identified area employment agencies of jobs available from the established job pool of Section 3 area residents. City of Boise Housing and Community Development Division Section 3 Goals City of Boise sets overall Section 3 employment and contracting goals annually through the Consolidated Annual Performance and Evaluation Report. The current Section 3 goals are as follows: Employment: Thirty percent (30%) of the aggregate number of new hires during a one year period of the project will meet Section 3 resident criteria. (Example: A construction contractor hires 10 new workers. Three of the new workers should be Section 3 eligible residents). 5 City of Boise Section 3 Business Application

8 Contracting: At least ten percent (10%) of the total dollar amount of all Section 3 covered contacts for building trades work arising in connection with housing rehabilitation, construction, and other public construction with federal funds over the established monetary thresholds. HUD s recommended goal is to award three percent (3%) of all other covered Section 3 contracts to Section 3 business concerns, which the City will aim to meet however, please note this will be difficult to obtain due to current City procurement procedures. In addition to the City s firm commitment to the above stipulated goals, City of Boise also recognizes the need for broad outreach, education and training relative to Section 3. The cornerstone of the City s outreach and training effort is in partnerships with employment and housing agencies within the city. City of Boise Housing and Community Development Section 3 Outreach To ensure equal opportunity for Section 3 Businesses to bid on HUD funded projects the City has implemented an outreach action plan. This includes: - Continuing cooperative efforts with the City of Meridian, Nampa and the State to expand Section 3 preference - Explore marketing opportunities with the Idaho Department of Transportation WBE/MBE - Work with the City s Purchasing Department to expand registration efforts and notifications - Maintain Section 3 language progress on the website - Partnering with agencies such as Workforce Services and Housing Authorities to create training and hiring opportunities. Section 3 Business trainings will be offered as deemed necessary. In addition to the City s outreach efforts, reporting requirements will be implemented to ensure Section 3 actions are fully implemented. Finding Section 3 Residents for Employment Businesses can recruit low income Section 3 Residents in public housing developments and surrounding neighborhoods in City of Boise. Low income is defined at 80% of the area median income based on family size. Income guidelines are attached to this document. Maximum household incomes change annually. Please verify you are using current median income numbers. Median income can also be found at Effective ways to inform residents about available training and job opportunities include contacting resident organizations, contacting employment agencies such as Workforce Services, posting signage on job sites and in public housing areas/facilities, and even placing ads in the paper for larger projects. However, a Section 3 resident who has been employed for more than three years may no longer be counted towards the 30% requirement. You must continually try to keep 30% of your new hires from Section 3 Residents in order to maintain Section 3 status. 6 City of Boise Section 3 Business Application

9 Assuring Compliance with Section 3 Policies Assuring compliance with Section 3 Policies involves affirmative measures on the part of all entities involved. These include contractors, subcontractors and the City. Contractors submit self certification forms to receive Section 3 status, However, all record documentation should be made available upon request for monitoring/compliance reviews on behalf of the City, HUD and other agencies as requested. Contractors must also document all implementation efforts as part of the submitted Section 3 Utilization Plan. Contractors agree to submit all reports in a timely matter. A finding of non compliance with Section 3 policies and/or the submitted Section 3 Utilization Plan will result in corrective actions. If corrective actions cannot rectify non compliance, the City will terminate the contract and/or ban the contractor from future project awards. 7 City of Boise Section 3 Business Application

10 SECTION 3 BUSINESS CHECKLIST Please verify you have done the following before submitting for bid preference on a Section 3 qualified project. 1. Complete a Section 3 Business Application and submit to the City of Boise s Housing and Community Development Division (HCD) and/or make sure your status is current. Section 3 Business status must be renewed every three (3) years or as deemed necessary by HCD. 2. After you have been issued a notice of intent to award (if your bid is selected) you must create a Section 3 Utilization Plan for the project in which you are bidding. Your plan must be approved by HCD before a contract will be signed. 3. If you are awarded the project as a Section 3 Business, your Utilization Plan becomes part of your contract with the City for that project. You must follow, document and prove that you have implemented the Utilization Plan to the fullest extent possible. All subcontracts pertaining to the activity must include the Section 3 Clause. 4. You must submit quarterly reports to HCD on your Section 3 Activities. The reports are due January 1, April 1, July 1, and October 1 for each year of the project, until project completion. In addition to your July 1 report, please include an annual report that includes all activity since the previous July 1. Please use the attached report form. Please include reports for subcontractors as well. CITY OF BOISE Housing and Community Development Division 1025 S. Capitol Boulevard Boise, Idaho (208) phone (208) fax ATTN: Gary Campbell, Rehabilitation Coordinator 8 City of Boise Section 3 Business Application

11 SECTION 3 INCOME GUIDELINES Boise City Median Income is $60,000 Moderate Income Guidelines (80% of Median Income) Family Size Annual Gross Income 1 Person $33,600 2 Person $38,400 3 Person $43,200 4 Person $48,000 5 Person $51,850 6 Person $55,700 7 Person $59,550 8 Person $63,400 Low-Moderate Income Guidelines (50% of Median Income) Family Size Annual Gross Income 1 Person $21,000 2 Person $24,000 3 Person $27,000 4 Person $30,000 5 Person $32,400 6 Person $34,800 7 Person $37,200 8 Person $39,600 Low Income Guidelines (30% of Median Income) Family Size Annual Gross Income 1 Person $12,600 2 Person $14,400 3 Person $16,200 4 Person $18,000 5 Person $19,450 6 Person $20,900 7 Person $22,350 8 Person $23,800 SOURCE: Community Development Block Grant Program, Boise Housing and Community Development Department Effective: 12/11/ City of Boise Section 3 Business Application

12 SECTION 3 CLAUSE [Code of Federal Regulations] [Title 24, Volume 1] [Revised as of April 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 24CFR135.38] *Page TITLE 24 HOUSING AND URBAN DEVELOPMENT CHAPTER I OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PART 135 ECONOMIC OPPORTUNITIES FOR LOW AND VERY LOW INCOME PERSONS Table of Contents Subpart B Economic Opportunities for Section 3 Residents and Section 3 Business Concerns Sec Section 3 clause. All section 3 covered contracts shall include the following clause (referred to as the section 3 clause): A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low and very low income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 35, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice 10 City of Boise Section 3 Business Application

13 shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). 11 City of Boise Section 3 Business Application

14 SECTION 3 BUSINESS APPLICATION Company Contact Information Company Name Street Address City, ST, Zip Code Contact Name Phone Address TAX Identification DUNS Number Instructions The business concern or contractor (hereinafter Applicant ) must satisfy at least one of the following minimum requirements to be qualified as a Section 3 Business before being awarded contracts under Section 3 status. Please check the appropriate category. A majority 51% or more ownership of Applicant business shall be held by low to very- low income residents of the designated area. Provide two year s tax documentation. At least 30% of the employees of the business are low to very-low income residents of the designated area. More than 25% of all contract work shall be performed by businesses that meet either of the criteria set forth in the two options above. 12 City of Boise Section 3 Business Application

15 Employees List all employees currently employed by your business Name (First Initial and Last Name) Employment Status (Full or Part-time) Annual Income # In Household City of Boise Section 3 Business Application

16 Company Ownership Please include information for all owners for the past calendar year. Name & Address of Owner % of Ownership Annual Income # In Household Name of Project Previous HUD Funded Project (if applicable) Please list all HUD funded projects this company has completed Project location/presiding Municipality 14 City of Boise Section 3 Business Application

17 Company Information Please complete the following information Company Establishment Date: Type of Company (LLC, Corp., etc.) Has the company operated under another name? If so, please list Is the company Minority- Owned: Is the company Women- Owned: General character of work the company performs: Business Federal Identification Number: Affidavit: By submitting this application, I affirm that the facts set forth in it are true and complete. I understand that if I am accepted as a Section 3 Business, any false statements, omissions, or other misrepresentations made by me on this application may result in immediate contract dismissal and/or debarment from future federally-funded projects. I certify the business has not been formally debarred from work on federallyfunded projects. The Undersigned hereby authorizes and requests any person, firm or corporation to furnish any information requested by City of Boise s Housing & Community Development in verification of the recitals comprising this day of, 20. Name of Contractor/Owner Title 15 City of Boise Section 3 Business Application

18 State of Idaho ) )SS County of Ada ) being duly sworn, deposes and says that he/she is of and that the answers to the forgoing questions and all statements therein contained are true and correct. Subscribed and sworn to before me this day of, 20 Notary Public 16 City of Boise Section 3 Business Application

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