Grant Administration: Economic Opportunity Requirements During Construction
Economic Opportunity is different than the non-discrimination in hiring requirements described in Grantee Requirements. Section 3 of the Housing and Urban Development Act of 1968 requires that contracting and employment opportunities be offered to businesses located in and lower-income people residing in the area of the project. This section briefly summarizes the duties of prime contractors related to subcontracting and employment efforts for both prime contractors and subcontractors.For covered projects, Section 3 establishes goals for job training, employment and contracting that the grantee must track and report. For construction activities, the grantee should develop procedures to track the following:
- Employment and Job Training: new hires of Section 3 Residents
- Contracting for Construction: total dollar amount of construction contracts and subcontracts with Section 3 Businesses
Businesses seeking to confirm whether a resident meets the definition of Section 3 Resident or a firm meets the definition of Section 3 business should consult with the LSO or other project contact identified by the grantee or sub-recipient during the Pre-Construction Meeting.
