CONSTRUCTION HIRING PLAN FOR
SECTION 3 PLUS COMPLIANCE
For
[NAME OF PROJECT]
I. INTRODUCTION
The [renovation/construction/etc.] of the [name of project] represents a significant effort on the part of [OWNER/DEVELOPER] to address the affordable housing crisis and the crisis of homelessness in San Francisco. The [description of purpose of project]. As part of the project, [OWNER/DEVELOPER] will endeavor to provide the greatest possible access to economically disadvantaged San Franciscans to the economic activity associated with the [renovation/construction/etc.]. The purpose of Section 3 Plus is to provide employment opportunities to economically disadvantaged people through the [renovation/construction/etc.] of the [project]. This Construction Hiring Plan for Section 3 Plus Compliance (“Construction Hiring Plan”) is a guiding document for the process of realizing these hiring goals.
[OWNER/DEVELOPER] is a non-profit organization [description of OWNER/DEVELOPER, mission, brief history, number of buildings, etc.].
II. CONCEPT
[OWNER/DEVELOPER] is committed to hiring economically disadvantaged people in all aspects of the [renovation/construction/etc.] of [project] in compliance with the requirements of Section 3 of the Housing and Community Development Act of 1968[1] and the Mayor’s Office of Housing (MOH). To achieve this goal, the contractors and subcontractors will utilize economically disadvantaged residents who are eligible as “Section 3 Residents” in trades and percentages as outlined in this Construction Hiring Plan. As part of the development process for the project, [OWNER/DEVELOPER], through a [process for selecting contractor], [selected/will select] [name of contractor if applicable](“General Contractor/(sub)contractor”) to negotiate a construction contract for the Project. This selection was based, in part on the General Contractor’s commitment to [OWNER/DEVELOPER] in reaching the goal of integrating economically disadvantaged workers in the work force a reality. CITYBUILD will work in collaboration with [OWNER/DEVELOPER] and [General Contractor] to facilitate in the identification and placement of Section 3 Residents into the workforce. In order to provide further economic opportunities to economically disadvantaged people and in compliance with Section 3 Plus requirements, [OWNER/DEVELOPER] and [Contractor] will additionally subcontract with businesses owned by, or who employ a majority of, Section 3 Residents.
Beyond the current lender hiring goals in effect, the goal of this Construction Hiring Plan is to specifically target economically disadvantaged individuals who are at the greatest risk. This Construction Hiring Plan will ensure employment opportunities for minority and women persons.
III. COMPLIANCE WITH LENDER REQUIREMENTS
[OWNER/DEVELOPER] as Borrower, and the Contractor as recipient of borrowed funds for the [renovation/construction/etc.] of the [project], are required by the U.S. Department of Housing and Urban Development, the Mayor’s Office of Housing, [ Redevelopment Agency if applicable], as lenders, to ensure that employment and economic opportunities are provided to economically disadvantaged [project area if Redevelopment Agency] residents. MOH and HUD Section 3 Plus requirements state that employment opportunities created within the renovation or construction of a project must be directed to economically disadvantaged Section 3 Residents. [The Redevelopment Agency documents are established to ensure employment opportunities for minority group persons and women in the construction work force but do not direct those opportunities to a certain income class.]
The terms and conditions of these requirements are outlined in Exhibit B, with Attachments 1 and 2 of the MOH Bid Information Packet and [ Attachment No. 5, Affirmative Action Program and Attachment No. 5, Schedule A, Construction WorkForce] have been included in the Contractor's Request for Qualification package. A single worker can meet more than one hiring requirement (e.g. Section 3, minority and/or gender). The goals are as follows:
A.HUD AND MOH SECTION 3 PLUS REQUIREMENTS
For the project as a whole and for all construction contracts in excess of $100,000 the following goals apply to the new hires for this project:
Positions covered: all positions
Hiring goals: 30% of new hires, moving towards a goal of 30% of total work hours
Section 3 Plus Business Contracting Goals: At least 10% of the total dollar amount of all Section 3 Plus covered contracts for building trades work arising in connection with housing rehabilitation, housing construction and other public construction, and at least 3% of the total dollar amount of all other Section 3 Plus covered contracts.
B.ADDITIONAL CITY REQUIREMENTS MONITORED BY THE HRC
Women: 10% for all trade
Minority: Varies by trade according to HRC guidelines
C.SFRA AGENCY GOAL PERCENTAGES
For all Construction Contracts in excess of $10,000 the following goals apply to the minority and women owned business composition on the project:
Women:10%
Minority:31%
The goals for minority and women participation in the Construction Work Force per Trade:
Minority:25.6%
Women:6.9%
50% of total hours worked in each trade to be performed by San Francisco residents with a priority given to [project specific area residents based on zip code.]
The intent of this Construction Hiring Plan is to coordinate work in conjunction with these existing requirements while providing a more focused response to a particular under served class of people. Unless expressly written in this document all requirements of Section 3 Plus will apply to the Construction Hiring Plan program in order to be eligible for accreditation.
IV. HIRING GOALS
A.DEFINITIONS
Section 3 Resident:
1.A public housing resident; or
2.An individual who resides in the metropolitan area in which the Section 3 Plus covered assistance is expended, and whose income does not exceed 50% of the median for the area.
3.One who can provide evidence (if requested) that he or she is eligible for the Section 3 residency preference.
Section 3 business concern: is a business concern:
1.That is 51 percent or more owned by Section 3 residents; or
2.Whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section
3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or that provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraph (1).
Section 3 Plus New Hire:
For MOH projects a person would be considered a “new hire” if that person was not employed for over 90 days by the reporting contractor or subcontractor. (i.e., any employee who qualifies as a Section 3 resident and has worked for the (sub)contractor for a maximum of 90 days prior to the subject project and during the past year.)
B.SPECIFIC SECTION 3 PLUS CONSTRUCTION HIRING GOALS
Prior to the start of construction work the General Contractor must identify the total estimated hours for each of the trades identified below. This will also be submitted to MOH as Exhibit B, Attachments 1 & 2 to be used for monitoring purposes. If the work is provided by a subcontractor, the General Contractor must provide written acknowledgment to [OWNER/DEVELOPER] that the estimated hours set forth are in accordance with the subcontractor’s estimates. The estimated hours are then multiplied by the percentages listed below to determine if the overall goals are met for new hires. Compliance will be monitored as noted in (V.)(I.). [OWNER/DEVELOPER] and the General Contractor acknowledge that the hours are estimates only and that percentage allocation of the actual required hours is the program requirement to be fulfilled. The Construction Hiring Plan goals apply to all changes in the Contract amount (change orders). The General Contractor will determine the number of workers necessary to accomplish the work. [OWNER/DEVELOPER] must approve the hiring plan and it will become an Addenda to the Construction Contract.
The following trades have been identified as likely ones to be included in the [renovation/construction] of [project]. This list is not exclusive, but represents those trades identified at the date of this Construction Hiring Plan. The numbers represent 30 percent of the total labor hours for that trade on the project. The goal for hires of Section 3 eligible workers for the entire Project will be 30% of all work hours.
[Following are some examples of some likely trades that are appropriate for Section 3 Plus hires, this list should correspond with Exhibit B, Attachment 1 of the MOH bid packet.
TradeHiring Goal (numerical)
General Labor#
Rough Carpentry#
Drywall#
Painting#
Electrical#
Ironworkers#
Painters#
Seismic workers#
Tile#
Sheetmetal#
Hazardous materials#
Plumber#
Flooring#
Hardware#
V. RESPONSIBILITIES OF PARTIES TO THE SECTION 3 PLUS COMPLIANCE HIRING PLAN
A. OWNER’S RESPONSIBILITIES
It is the Owner's responsibility to provide a labor pool from which the (sub)contractor can draw to meet the goals of this Construction Hiring Plan and Section 3 Plus requirements. For this purpose, the Owner will work with CITYBUILD. This Hiring Plan [will be /has been] entered into by [OWNER/DEVELOPER] and CITYBUILD that delineates the specific responsibilities of CITYBUILD in assisting [OWNER/DEVELOPER] in meeting their Section 3 Plus obligations.
1.Source for Workers
Workers for the Construction Hiring Plan will be available through the CITYBUILD. Workers may include referrals to CITYBUILD from several community-based organizations.
- Outreach
Owner will ensure that extensive outreach is conducted to identify qualified Section 3 Residents, particularly in the neighborhood where the project is placed. This outreach will be done in part through the services of the CITYBUILD, but is the ultimate responsibility of [OWNER/DEVELOPER].
- Job Guidelines
Guidelines for all project hires will be collected by [OWNER/DEVELOPER] and supplied to CITYBUILD, and will be included in outreach efforts to ensure better access to Section 3 eligible residents.
4.Worker Qualifications
Prior to placement with CITYBUILD, workers will have: a) been screened for work readiness; b) signed a Section 3 employment eligibility certification; [additional requirements will vary by project]. In the event that owner, or the CITYBUILD acting as its agent, can not supply adequate qualified workers within [specified time], [OWNER/DEVELOPER] agrees that (sub)contractor may hire non-Section 3 hires for the corresponding jobs. In the case of such a waiver, [OWNER/DEVELOPER] will notify MOH.
5.Construction Hiring Plan Priority Placement
Workers will be referred to the project in the following order [if HUD housing project, project residents are given the priority; if a project or neighborhood preference exists, then this should be stated here; if McKinney funded, then preference for homeless individuals; etc.]
6.Tools and Equipment
A General Condition allowance will be established between [OWNER/DEVELOPER] and the General Contractor for the provision of start up basic tools and equipment consisting of a hammer, pouch, tape measure, goggles, hard-hat, back braces, and dust masks. Further tools will be provided as needed pending work scope. All tools will remain the property of [OWNER/DEVELOPER].
7.Worker Support
On a regularly established schedule, CITYBUILD, or another agency where an agreement has been entered into for this purpose, shall meet with their worker to provide counseling and necessary support regarding issues that might affect the maintenance of their employment. As necessary, the referral agency will meet directly with the (sub)contractor to discuss their placement.
B. GENERAL AND SUB CONTRACTORS’ RESPONSIBILITIES
- Contractor’s Hiring Projections
The General Contractor will determine the number of workers necessary to accomplish the work. [OWNER/DEVELOPER] must approve these projections, that will then become an Addendum to the Construction Contract. The (sub)contractor will ensure that this hiring program includes the entire scope of the work in bid documents, change orders and contingencies.
2.Referral
(Sub)contractors will make requests for workers from CITYBUILD.
3.Worker Training by (Sub)contractor
The (sub)contractor will provide on-the-job training opportunities and/or participate in training programs which expressly focus on construction job development for the Section 3 eligible workers. The provision of training opportunities will be monitored by [OWNER/DEVELOPER].
4. Worker Policy and Guidelines
Workers placed on the [project] as part of the Section 3 Plus program will be hired directly by the (sub)contractor and will be subject to the (sub)contractor’s standard employee guidelines, policies, and health benefits. In addition, health care coverage is mandatory for Section 3 eligible workers and must be offered for their dependents. It is recognized that on this Project, all health insurance will be provided through Union membership and per Union procedures. (Sub)contractor will also be responsible for ensuring workers safety on site.
5.Union Trade Membership
Realizing the economic impact of associated fees and dues, unions will work with [OWNER/DEVELOPER] in reducing that burden for Section 3 hires.
6.Payroll
Workers will be paid the greater of either of the following, respective of the worker’s skill level at the time of employment and the trade in which they are working; a) the established union wage, b) the prevailing wage as noted in the wage determination approved for the project at the time of construction closing. The wage amount is exclusive of required State or Federal taxes, insurance, benefits or other fringes.
7.Worker support
(Sub)contractor will work with [OWNER/DEVELOPER] and CITYBUILD to provide support to workers on site, allowing access to individuals identified for this purpose.
8.Grievance
Grievance procedures shall follow the (sub)contractors own written policies and procedures or as outlined in collective bargaining agreements if the (sub)contractor is a union member. [OWNER/DEVELOPER] will be immediately notified in writing of any grievance filed with respect to a Section 3 eligible worker and must be included in the resolution process. In the event that procedures do not exist, [OWNER/DEVELOPER] will provide requirements that will apply to anyone hired pursuant to this Construction Hiring Plan.
C. MONITORING AND ENFORCEMENT
Note: This section is not meant to state, nor imply, that monitoring and enforcement of other lender requirements referenced in Section III, above, will be performed by [OWNER/DEVELOPER]. Submission of certified payrolls shall be made to the Human Rights Commission for purposes of monitoring those other lender requirements.
1.Monitoring
Worker hours will be monitored by [OWNER/DEVELOPER] on both a weekly basis at the regularly scheduled job site meeting and monthly as part of the certified payroll submission to MOH. Monitoring forms will be provided by MOH and HRC. Total hours completed will be monitored against job completion.
2.Enforcement
In the event that MOH and HRC determine that the requirements are not being met, enforcement procedures will include the following:
a) Written Warning. MOH and HRC will issue a written warning to (sub)contractors who fail to meet the specified Section 3 Plus requirement during any given disbursement period (typically every 30 days), with copies sent to [OWNER/DEVELOPER]. (Sub)contractor will acknowledge, in writing, receipt of the warning notice and provide a correction directive to MOH, HRC and [OWNER/DEVELOPER].
b) Disbursement Withholding. In the event that the (sub)contractor fails to comply with this Construction Hiring Plan and does not make appropriate corrective measures, [OWNER/DEVELOPER] reserves the right to withhold an amount equal to the worker hourly rate multiplied by the number of hours not completed with Section 3 eligible workers. This amount will be deducted from the Construction Contract.
VI.TECHNICAL ASSISTANCE
All parties to this agreement are aware of the availability of the MOH, to provide technical assistance in the implementation of this Construction Hiring Plan.
VII. AGREEMENT
This document is referenced and attached as part of the Construction Contract and shall be in full force until completion of the Contract.
Agreed:
______
[OWNER/DEVELOPER][General Contractors]
______
Print NamePrint Name
______
TitleTitle
______
DateDate
______
[CITYBUILD]
______
Print Name
______
Title
______
Date
Sample Hiring Plan For MOH Funded Projects Page 1 of 7
[1] 12 U.S.C. § 1701u (Supp. 1996)