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HUD To Ramp Up Section 3 Enforcement

Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: Community Revitalization
Forum Description: Middletown Community Revitalization News
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=2129
Printed Date: Nov 22 2024 at 11:51am


Topic: HUD To Ramp Up Section 3 Enforcement
Posted By: Nelson R. Self
Subject: HUD To Ramp Up Section 3 Enforcement
Date Posted: Oct 16 2009 at 2:24pm
October 16, 2009

NAHRO Washington Update

HUD Announces Effort to Ramp up Section 3 Enforcement

HUD issued a press release on October 14 announcing that the Department is stepping up enforcement of Section 3 requirements.  Section 3 of the Housing and Urban Development Act of 1968 requires recipients of certain forms of HUD funding to extend training, employment, and other economic opportunities to low- and very-low income persons. 

In its October 14 http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2009/HUDNo.09-200 - press release , the Department announced that it recently transmitted letters to over 3,000 state and local entities (such as the City of Middletown) which have not yet met calendar year Section 3 reporting obligations for the 2008 reporting period.  Those agencies contacted by HUD must submit Form HUD-60002 no later than November 30 to prevent an official finding of noncompliance.

In its press release, the Department describes the issuance of these letters as “one of the first in a series of steps to more aggressively enforce Section 3 hiring and contracting requirements.”  HUD officials are currently working to develop revised regulations that will reflect the current administration’s commitment to the aggressive enforcement of Section 3 requirements. 

Background on Section 3 Requirements

Section 3 employment and contracting requirements apply to both Public Housing Agencies plus states and muncipalities that receive various forms of HUD funding that invest $200,000 or more into projects/activities involving housing construction, rehabilitation, or other public construction.  Covered programs include but are not limited to HOPE VI, the Community Development Block Grant (CDBG) program, the Home Investment Partnerships (HOME) program, the Brownfields Economic Development Initiative, Continuum of Care Homeless Assistance programs, Housing Opportunities for Persons with AIDS, Section 202 Supportive Housing for the Elderly, Section 811 Supportive Housing for Persons with Disabilities, and many of the HUD programs funded through the American Recovery and Reinvestment Act of 2009.

Compliance with Section 3 requirements involves meeting, “to the maximum extent feasible,” minimum numerical hiring and contracting goals set forth in regulation.  Recipients of covered HUD funding that fail to meet these numerical goals must demonstrate why it was not possible to do so.  According to HUD, “such justifications should describe the efforts that were taken, barriers encountered, and other relevant information that will allow the Department to make a determination regarding compliance.”

Additional Resources

  • HUD’s Section 3 http://www.hud.gov/offices/fheo/section3/FAQ08.pdf - FAQ

  • HUD guidance on http://www.hud.gov/offices/fheo/section3/Econ-Stimulus-sec3-final.pdf - Section 3 applicability to ARRA funding



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Replies:
Posted By: Nelson R. Self
Date Posted: Oct 16 2009 at 8:55pm
Whenever a muncipality like the City of Middletown receives various HUD grants, there will ALWAYS be certain rules, regulations and administrative requirements that must be followed.
 
Since millions in Community Development Block Grant (CDBG), Home Investment Partnerships (HOME) and now Neighborhood Stabilization (NSP) funds are allocated to the City of Middlletown, THERE ARE CERTAIN LITTLE STRINGS ATTACHED.
 
I believe that City Councilman Bill Becker asked this very question to senior City staff a couple of months ago and received an answer that was A BIT CRYPTIC?

Posted By: VietVet
Date Posted: Oct 17 2009 at 9:04am
So Nelson, if the city received HUD money for the operation of the low income programs in this town, and they use the money for "other projects" and not for those purposes, how does the city report to HUD how the money was used, other than out and out lying about it? And, if discovered that the money was used on "other projects", can the city be penalized and if so, how? OR- would Gilleland and company NEVER do such a thing?

Posted By: Vivian Moon
Date Posted: Oct 17 2009 at 9:39am

Vet: So Nelson, if the city received HUD money for the operation of the low income programs in this town, and they use the money for "other projects" and not for those purposes, how does the city report to HUD how the money was used, other than out and out lying about it? And, if discovered that the money was used on "other projects", can the city be penalized and if so, how? OR- would Gilleland and company NEVER do such a thing?

LOL LOL LOL  Thanks Vet ya sure have started my day off with a good laugh...

Posted By: Nelson R. Self
Date Posted: Oct 17 2009 at 11:21am
The moral to the story is, "when you accept HUD dollars, you're obligated to abide by its' rules, regulations and administrative dictates.  There's no such thing as a free lunch as far as the City of Middletown and CDBG, HOME, Housing Choice Voucher and NSP funding is concerned."
 
I eagerly await the City's response if HUD - Columbus Field Office vigorously enforces this new directive for states and municipalities.  It will affect many things including the selection of prime contractors, approval of subcontractors, hiring practices, etc., etc.

Posted By: Nelson R. Self
Date Posted: Oct 17 2009 at 11:27am
Under the CDBG and HOME programs, the City of Middletown must document that at least 70% of all funding is utilized to assist low- to moderate-income households (earning at or below 80% of median income).
 
With the new Neighborhood Stabilization Program (NSP), the City of Middletown must document that all funding is utilized to assist moderate- to middle-income households (earning at or below 120% of median income).

Posted By: VietVet
Date Posted: Oct 17 2009 at 7:57pm
So, to clarify Nelson. There is absolutely NO WAY that the city of Middletown's leaders, in any capacity, can use these HUD funds, sent to the city to assist low income folks, for any other purpose other than which they were intended? I still don't trust 'em! They are good at "creative financing" when it comes to "moving money around", especially to resupply that pesky "General Fund" aka- The Black Hole.

Posted By: Nelson R. Self
Date Posted: Oct 17 2009 at 10:45pm
Viet Vet -
 
One of the biggest problems was that the HUD Columbus Field Office failed to "monitor" local CDBG activities for seven years!  And, the so-called "monitoring" that they did this past summer was superficial at best.
 
The botton line is, "the HUD Columbus folks were concerned that they would be negatively cited by their Office of the Inspector General for failing to keep tabs on the numerous irregularities locally that I have presented to MiddeltownUSA readers as well as for Eddie Richter.
 
It was cover your backside time on the part of the City of Middletown plus HUD - Columbus.


-------------
Nelson Self

Posted By: Nelson R. Self
Date Posted: Oct 17 2009 at 11:12pm
The sordid details that Miss Vivian has brought to light regarding the Historic Pioneer Cemetery, hopefully will help people like me to have their allegations fully disclosed.
 
Thank you Miss Vivian and keep up the good fight.
 
Vote for Nagy, Barge, Soppanish and Laubach.


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