SECTION 3 CONTRACTING POLICY AND PROCEDURE INTRODUCTION
It is the mission of the Housing Authority to provide a variety of safe, sanitary, accessible, decent and affordable housing to eligible citizens of the City of St. Petersburg, while enhancing and promoting resident self-sufficiency.
The purpose of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u) (Section 3) is to ensure that employment and other economic opportunities generated by certain 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 individuals, especially recipients of government assistance for housing, and to business concerns which provide economic opportunities 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.
Section 3 requirements apply to all contractors and subcontractors performing work in connection with projects and activities funded by public housing assistance covered by Section 3, regardless of the amount of the contract or subcontract. Section 3 covered contracts do not include contracts for the purchase of supplies and materials unless the contract includes the installation of the materials.
A business concern seeking to quality for a Section 3 contracting preference shall certify or submit evidence that the business concern qualifies as a Section 3-business concern. (Refer to What Is A Section 3 Business Concern?). The Section 3 business must also be able to demonstrate its ability to complete the contract. The ability to perform successfully under the terms and conditions of the proposed contract is required of all contractors and subcontractors subject to the procurement standards of 24 CFR 85.36, 24 CFR 85.36b(8).
Contractors who do not qualify as Section 3 business concerns, but who enter into contracts with the Housing Authority of the City of St. Petersburg, must agree to comply with certain general conditions (refer to Section 3 Clause). All contractors and subcontractors, including Section 3 businesses, must comply with these general conditions. Included in these conditions is the requirement that each contractor and subcontractor submit with each pay request a report of Section 3 compliance (refer to Section 3 Compliance Report). Failure to comply with these general conditions may lead to sanctions which can include termination of the contract for default and suspension or debarment from future HUD-assisted contracts (refer to Sanctions for Contractor's Noncompliance).
Please direct any questions you may have regarding this information to:
St. Petersburg Housing Authority (727) 323-3171 X222
WHAT IS A SECTION 3 BUSINESS CONCERN?
A Section 3 Business Concern is a business that can provide evidence that they meet one of the following criteria:
NOTE: A BUSINESS CONCERN SEEKING TO QUALIFY FOR SECTION 3 SHALL CERTIFY AND
SUBMIT EVIDENCE THAT THE BUSINESS MEETS ONE OF THE GUIDELINES STATED
ABOVE. (REFER TO CERTIFICATION FOR BUSINESS CONCERNS SEEKING SECTION 3 PREFERENCE IN CONTRACTING AND DEMONSTRATION OF CAPABILITY FORM - EXHIBIT 1)
WHO IS A SECTION 3 RESIDENT?
For purposes of the Housing Authority of the City of St. Petersburg, a Section 3 resident is:
ORDER OF PROVIDING PREFERENCE SECTION 3 BUSINESS CONCERN
When considering the award of contracts and more than one Section 3 business concern is being considered, to the greatest extent possible, awards shall be made in the following order of priority:
NOTE: A SECTION 3 BUSINESS CONCERN SEEKING ANY OF THE ABOVE PREFERENCES
SHALL SUBMIT EVIDENCE THAT IT MEETS THE GUIDELINES OF THAT PREFERENCE.
WHAT IF MY BUSINESS DOES NOT QUALIFY AS A SECTION 3 BUSINESS?
The Housing Authority will, to the qreatest extent feasible, offer contracting opportunities to Section 3 business concerns. However, in the event no Section 3 business bids on a contract, or bids but is not able to demonstrate to the Housing Authority's satisfaction that it has the ability to perform successfully under the terms and conditions of the proposed contract, then that contract will be awarded to a non-Section 3 business concern that can meet the terms and conditions of the proposed contract through the competitive bidding process.
That business concern must meet, as all businesses must (including Section 3 businesses), the general conditions of compliance (refer to Section 3 Clause [Construction Contracts] and Section 3 Clause [Non-Construction Contracts]). This will include:
ORDER OF PROVIDING PREFERENCE EMPLOYMENT OF SECTION 3 RESIDENT
When considering the employment of a Section 3 resident, the following order of priority is followed as outlined in 24 CFR 135.32:
In all cases, applicants must meet the minimum qualifications for the position. In no instance shall it be construed that preference is given to Section 3 residents who do not meet these minimum qualifications.
SECTION 3 INCOME LIMITS
All residents of public housing developments of The Housing Authority of the City of St. Petersburg qualify as Section 3 residents. Additionally, individuals residing in the City of St. Petersburg and who meet the income limits set forth below (for FY 2018 for Pinellas and Hillsborough counties) can also qualify for Section 3 status.
SECTION 3 CLAUSE