The Section 3 regulations provide that contractors and subcontractors demonstrate compliance by employing Section 3 Residents as 30% of the aggregate number of new hires. New hires are defined as full-time employees hired for permanent, temporary, or seasonal employment. Building trades personnel are considered to be new hires at the start of each construction project. A contractor is required to hire only when a new hire is needed to perform the work.
Contractors should give serious consideration to hiring Section 3 Residents for work on other than Section 3 Covered Projects. The Section 3 Regulations, at 24 C.F.R Part 135, require that, in public housing programs, compliance efforts shall be directed to provide training and employment opportunities to Section 3 Residents in the following order of priority:
1. Residents of the development or developments where the covered assistance is expended.
2. Residents of other developments managed by HSHA.
3. Participants in a HSHA Pre-apprentice Program or DOL's Youthbuild Program in Hot Springs.
4. All other low- and very low-income persons within Hot Springs, Arkansas.
In situations where a new hire is needed, a contractor will not be required to hire persons who are not qualified. If a new hire is needed and a Section 3 Resident is identified, that Section 3 Resident will be required to submit evidence of Section 3 status to the contractor or subcontractor.
The HSHA Capital Fund Coordinator will monitor contractors for compliance with Section 8 of new and existing hires.
Non-PHA households claiming Section 3 status must be prepared to submit evidence of income and residency in the City of Hot Springs at the time of hire. As part of the Section 3 compliance process, vendors will be required to document that employees hired meet the residency and income requirements.