Ordinance No. 2,619la
ORDINANCE NO. 2619
AN ORDINANCE ESTABLISHING AN AFFIRMATIVE ACTION PROGRAM
RELATING EXCLUSIVELY TO PROJECTS FUNDED BY THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN :
Section 1: That the City Council does hereby establish
an affirmative action program relating exclusively to projects
funded by the Community Development Block Grant Program. A
copy of said program is attached hereto, marked Exhibit "A"
1 and made a part hereof for all intents and purposes.
Section 2: This ordinance shall take effect from and
after its passage.
INTRODUCED, READ, and PASSED by the affirmative vote of
a majority of the City Council of the City of Baytown this
8th day of February , 1979.
_.� � VA z
pre
ATTEST:
)0'
EI E N P. HALL, City Clerk
APPROVED:
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SCOTT BOUNDS, City Attorney
Affirmative Action Program of the City of Baytown relating
exclusively to projects funded by the Community Development
Block Grant Program.
I. Introduction
A. Purpose: The purpose of this Affirmative Action
Program is to set forth policies and procedures
that will be implemented by the City of Baytown to
assure the compliance of contractors and sub-
contractors using Community Development Block
Grant funds with Section 3 of the Housing and
Urban Development Act of 1968.
B. Policy Statement: It will be established policy
to provide employment and business opportunities
for businesses within or owned in substantial part
by persons residing in the Section 3 covered
project area and lower- income residents of the
same area as promulgated in the Section 3 clause.
(See attachment No. 1, Employment Opportunities
for Business and Lower Income Persons in connection
with Assisted Projects, A through E).
C. Project Boundaries: The Section 3 covered project
area boundaries for the purpose of the Community
Development Block Grant Projects are the corporate
limits of the City of Baytown. Those boundaries
were ascertained by the Department of Housing and
Urban Development (HUD).
D. Definitions:
1. Business concerns located within the Section
3 covered project area - Those individuals or
firms located within the relevant Section 3
covered project area, listed on HUD's registry
of eligible business concerns, and which
qualify as small under the small business
size standards of the Small Business Admin-
istration.
2. Business concerns owned in substantial part
by persons residing in the Section 3 covered
project area - Those business concerns which
are 51 percent or more owned by persons
residing within the relevant Section 3 covered
project area, owned by persons considered by
the Small Business Administration to be
socially or economically disadvantaged,
listed on HUD's registry of eligible business
concerns, and which qualify as small under
the small business size standards of the
Small Business Administration.
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3. Moderate income resident - A person who
resides within the corporate limits of the
City of Baytown and whose personal income
does not exceed 80 percent of the income in
the Houston Standard Metropolitan Statistical
Area (SMSA). HUD has established that $14,800
($18,500 Medium Family Income X 80 %) is the
ceiling level.
4. Lower income resident - A person who resides
within the corporate boundaries of the City
of Baytown and whose personal income does
not exceed 50 percent of the medium income in
the Houston SMSA. HUD has established that
$9,250 ($18,500 Medium Family Income X 507o)
is the ceiling level.
5. Section 3 covered project - In this particular
case, any nonexempt project funded by Community
Development Block Grant Funds must be responsive
to Section 3 requirements and, as a result,
are Section 3 covered projects.
6. Section 3 exempt project - Regardless of
^ funding level, no Community Development Block
Grant Funded projects are exempt from Section
3 requirements.
II. Affirmative Action Program
A. Utilization of lower- income, Section 3 covered
project area residents as:
1. Apprentices /Trainees - The City of Baytown
will require that all contractors and sub-
contractors subject to Section 3 regulations
will provide, prior to signing a contract, a
preliminary statement of work force needs to
include trade and job classifications. A
standardized form will be provided by the
City to record this information. In addition,
the contractors and subcontractors will be
required to use the criteria set forth in
135.40, 135.45, and 135.50 of the Section 3
regulations apprentice /trainee recruiting and
hiring requirements. (See attachment No. 2).
2. Employees - The City of Baytown will require
that all contractors and subcontractors
subject to Section 3 regulations will provide,
prior to signing a contract, a preliminary
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statement of work force needs to include
trade and job classifications, on a standard-
ized form to be provided by the City of
Baytown. In addition, the contractors and
subcontractors will be required to use the
criteria set forth in 135.55 and 135.60 of
the Section 3 regulations regarding recruiting
and hiring requirements. (See attachment No.
3).
B. It is anticipated as a goal that all projects will
be undertaken by business concerns that are located
in the Section 3 covered project area.
C. Outline of the anticipated program to be used to
achieve the goals for each category noted above.
1. The Affirmative Action Program will be included
in the bid documents.
2. The Section 3 covered project area will be
identified in the bid documents.
3. Contractors and subcontractors will be notified
of their obligations to utilize lower income
Section 3 project area residents as trainees
and employees to the greatest extent feasible.
4. Whenever applicable and possible the contracting
officer will bid or negotiate contracts by
trade to maximize participation of small
contractors of the Section 3 covered project
area.
D. Process To Secure Cooperation
1. City officials will meet with all interest
contractors and subcontractors prior to
contract approval to insure their under-
standing of and cooperation with the Affirma-
tive Action Program.
2. During the above session, particular emphasis
will be placed on describing Section 3 obligatory
provisions concerning training and employment
opportunities for low income residents of the
Section 3 project area, utilization of business
concerns located in or owned in substantial
part by persons residing in the Section 3
project area, and contractor requirements
concerning their labor organization relation-
ships. (See attachment No. 1, Section 3
clause, paragraph C).
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3. The City of Baytown will pursue its obligation
as set forth in 135.300 of the Section 3
Regulations. (See attachment No. 4).
E. Steps to Insure Notification of Pending Contractural
Opportunities:
1. Attempt to recruit from the Section 3 covered
area the necessary eligible business concerns
through local advertising (media) and signs
placed at the proposed sites.
2. Inform local, public and private, community
agencies and institutions about potential
business opportunities in the projects for
small businesses of the community and firms
owned by residents of the community.
3. Contract all potential bidders of proposed
projects and apprise them of the need to
utilize to the greatest extent feasible
business concerns located in the Section 3
project area or business concerns owned in
substantial part by individuals living in the
Section 3 project area.
4. Refer qualified and interested small businesses
and firms either located within the Section 3
project area or owned in substantial part by
residents of the City of Baytown to the prime
contractor, the contracting officer of the
City,_or contractors who propose to subcontract
portions of the work.
5. Measures will be taken by the City of Baytown
to insure that the appropriate eligible
business concerns will be notified of pending
contractural opportunities. However, once a
registry of eligible business concerns is
established by HUD, in consultation with the
Small Business Administration, contracting
those listed concerns will constitute satis-
factory compliance with HUD requirements
regarding notification procedures.
F. Steps will be taken to insure that contracts will
be let in accordance with local and state statutes.
G. Once competitive bids are solicited, bidders are
required to submit manpower and business utiliza-
tion goals and possibly an Affirmative Action
Program accomplishing those goals. Whether the
submission of an Affirmative Action Program will
be necessary will depend on HUD determination.
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Whatever the outcome, the City of Baytown will
carefully evaluate the submission(s) of contractors
and subcontractors.
H. The City of Baytown will continue to work closely
with the HUD Area Office in an attempt to affirma-
tively pursue the completion of these projects.
I. The City of Baytown will also make good faith
effort to achieve its goal or target number and
estimated dollar amount of contracts to be awarded
to eligible businesses within each noted category
as well as to maintain a good faith effort to
implement is Affirmative Action Program. A monitoring
/evaluation system will be undertaken to make
certain that compliance with aforestated paragraphs
C., D., E., and F. are being adhered to.
J. Where the nature of a project limits the number of
potential contractors to one party, the City of
Baytown will not pursue the advertising of such a
project as outlined in this Plan but will merely
contract with the party in question.
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(-) '2o:ver income resident of .ne
area" means any individual who resides
within the area of a section 3 covered
.project and r. hose family income does not
exceed 90 percent of the median income
In the Standard NIetropoIitan Statistical
Area (or the county If net within an
SMSA) in which the section 3 covered
project is located.
(h) "Political Jurisdiction" means a
,litically ma.nized community with a
goverring body having general govern-
mental powers.
(i) "Recipient- mesas any entity who
received assistance for a project Includ-
ing, but not limited to. mortgagors.
dereicxers, local public bodies, nonprofit
or limited dividend sponsors, builders or
property managers.
(j) "Secretary" means the Secretary
of Housing and Urban Development.
(k) "Section 3- means section 3 of
the Housing and Urban Development Act
of 1968.12 U.S.C. 1701u.
(1) "Section 3 clause" means the con-
tract provisions set forth in J 135.20(b).
(m) " Section 3 covered project" means
any nonexempt project assisted by any
program administered by the Secretary
In which loans. greats, subsidies. or other
financial assistance are provided in aid
of housing. urban planning. development.
redevelopment, or renewal. public or
communit; facilities. and new commu-
nity development (except where the fi-
nancial assistance ara!!able under such
program is vilely In the form of insurance
, guaranty). Projects. contracts. and
)contracts. connected with programs
- ministered by the Secretary under sec-
tion 235 and 236 of the National Hous-
ing Act, as well as any Public Housing
program and which do not exceed
$500,000 in estimated cost are exempted
from the requirements of this part. as
Is any subcontract of $50,000 or under
on such projects or contracts in excess of
$500,000.
in) "Subcontractor" means any entity
(other than a person who is an employee
of the contractor) which has agreed or
arranged with a contractor to undertake
a portion of the contractor's obligation or
the performance of work In connection
with a section 3 covered project,
It 135.10 Delegation to A *siatant Sr
ecr
-' -•-- tail for Equal Opportunity.
r,xcept as otherwise provided in this
part, the functions of the Secretary re-
ferred to herein are delegated to the As-
Astant Secretary for Equal Opportunity.
§135.15 Determination of the area -of
a "etion 3 covered project.
(a) The area of a section 3 covered
project shall be determined as follows:
1) The boundaries of a section 3 cov-
1 project located:
(1) '%7ithin a geographic area desig-
nated as an urban renewal area pursuant
to the provisions of title I of the Housing
Act of 1949. 42 U.S.C. 1450; or
(U) Within a geographic area desig-
nated as Model Cities areas or Metropoli-
tan Development Plan areas pursuant to
the provisions of title I of the Demon-
stration Cities and Metropolitan Develop-
ment Act of 1966. 42 U.S.C. 3301; or
RULES AND REGULATIONS
(iii) Within r_ geographic area desig-
nated as an Lidian reservation (to in-
clude all tenitory within reservation
boundaries including fee patented roads,
waters, bridges and lands used for agency
purposes) .
shall be coextensive with the boundaries
of that geographic area.
(2) The boundaries of a section 3
covered project not located within a geo-
graphic area designated pursuant to title
I of the Housing Act of 1949, or title I of
the Demonstration Cities and bletropoli-
tan Development Act of 1966 shall be co-
extensive with the boundaries of the
smallest political jurisdiction In which
the project is located.
(3) To the extent that goals (estab-
lished pursuant to Subparts B. C. and
D of this part) cannot be met within a
section 3 covered project area as deter-
mined pursuant to paragraph (a) (1) of
this section, the boundaries of the small-
est political jurisdiction in which the sec-
tion 3 covered project is located shall be
designated as the relevant section 3 cov-
ered project area. The determination to
apply this subparagraph shall be made
by the Assistant Secretary for Equal Op-
portunity or by the same official desig-
nated by the Assistant Secretary for
Equal Opportunity to determine the sec-
tion 3 covered project area pursuant to
paragraph (a)(1) of thissection.
(b) The Department's Regional Ad-
ministrator, Area Office Director. or FHA
Insuring Office Director, as appropriate,
shall determine the boundaries of each
section 3 covered project.
§ 135.20 Assurance of compliance with
regulations.
(a) Every contract or agreement for
a grant. loan, subsidy. or other direct
financial assistance in aid of housing.
urban planning, development, redevelop-
ment. or renewal, public or community
facilities. and new community develop-
ment, entered into by the Department
of Housing and Urban Development with
respect to a section 3 covered project
shall contain provisions requiring the ap-
plicant or recipient to carry out the pro-
visions of section 3, the regulations set
forth In this part, and any applicable
rules and orders of the Department is-
sued thereunder prior to approval of its
application for assistance for a section 3
covered project.
(b) Eve rs+ applicant. recipient, con-
co
as a section 3 clause) :
A. The pork to be performed under
this contract Is on a project assisted un-
der a program providing direct Federal
financial assistance from the Depart.
ment of Housing and Urban Develop.
eat and Is subject to the requirements
of section 3 of the Housing and Urban
Development Act of 1968. as amended, 12
U.S.C. 1701u. Section 3 requires that to
he greatest extent feasible opportuni-
ies for training and employment be
given lower income residents of the
iC- / /.- lCV / / // CW // // CJ
90208-3f
project area and com.act.s for work In
connection, with the project be awwded
to business concerns which are located
in. or owned in substantial part by per-
sons residing in the area of the project.
B. The parties to this contract will
comply with the provilons of said sec-
tion 3 and the regulations Issued pursu-
ant thereto by the Secretary of Housing1l
and Urban Development set forth in 24
CIFIR . and all applicable rules and
orders of the Department issued there-
under prior to the execution of this con -
tract. The partias to this contract certify
and agree that they are under no con-
tractual or other disability which could
prevent them from complying with these
requirement..
C. The contractor will send to each la-
bor org-2nization or representative of
workers with which he has a collective
bargaining agreement or. other contracts
or understanding, if any. a notice advis-
Ing the said la'.-or organtzation or work -'I
ers' renresentative of his commitmentsi
under this section 3 clause and shall post
copies of the notice in conspicuous places,
available to employees and applicants for
emnloyment or training.
D. T.he contractor will include this
section 3 clause in every subcontract for
work In connection with the project and
kill. at the direction of the applicant
for or recipient of Federal financial as-
sistance: take appropriate action pursu-
ant to Abe subcontract upon a finding
that theVubcontmctor is In violation of
regwlaticas issued by the Secretary of
Housing- and Urban Development, 24
CFrt The contractor will not sub -
cantract rith any subcontractor where
It has notice or knowledee that the latter
has be--n found in viola' tion of regula-
tOns under 24 CFR and will rot
let any subcontract unless the subcon-
tractor has first provided it with a pre -
Bminary statement of ability to comply
with the requirements of these regu-
lations.
E. Ccripliance with the provisions of
section 3, the regulations set forth iA 24
CM . and all applicable rules and
orders of the Department Issued there-
under prior to the execution of the con-
tract. shalt be it condition of the Federal
financial assistance provided to the proj-
ect, binding upon the applicant or recip-
ient for such asslstance. its successors,
and assigns. Failure to fulfill these re-
quirements shall subject the applicant or
recipient. Its contractors and subcontrac-
tors. its succemeors. and assign to those
sanctions specified by the grant or loan
agreement or contract through which
Federal assistance Is provided, and to
such sanctions as are 'specified by 24
Cr^R .135.
§ 13S.-.5 Bidding and negotiation rem
quirrments.
(al Every applicant and recipient
shall require prospective contractors for
work in connection with section 3 cov-
ered projects to provide: prior to the
signing of the contract, a preliminary
statement of work force needs (skilled.
semiskilled, unskilled labor and tralnees
by category) where known; where not
FEDERAL REGOUN, VOL 30, NO. 203— TUESOAY. OCTOBER 23; 1973
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known, such information sball be sup -
plied prior to the signing of any con -
tract between contractors and their
subcontractors.
(b) When a bidding procedure is used
to let the contract, the Invitation or
solicitation for bids shall advise prospec-
tive contractors of the requirements of
these regulations. When the contract is
let pursuant to negotiation or methods
other than formal bidding procedures.
prospective contractors shall be advised
by the contracting party of the require-
: rnents of these regulations as part of the
rnnkrarE soeciflratiorts.
6135.30 Other applicant and recipient
obligations.
Every applicant and recipient shall as-
sist and actively cooperate with the Sec-
retary In obtaining the compliance of
their contractors and 'subcontractors
with the requirements of these regula-
tions. including cooperation and assist-
ance In distributing and collecting forms
and information. and In notifying con-
tracting parties and contractors of vio-
lations of these regulations. and shall re-
frain from entering Into any contract
with any contractor after notification by
the Department that the contractor has
been found to violation of these regula-
§ 133.35 Effectuation of applicant ol,li-
cations in c4rect and indirect rela.
tiorollipA.
, (a) Where the applicant for assist-
ance under a section 3 covered project
and the recipient of such assistance are
z not one and the same. the recipient shall
be regarded as the successor in interest
of the applicant and shall have the same
obligations as the applicant with respect
to compliance with these regulations.
These obligations shall be incorporated.
specifically or by'reference in the loan
or grant agreement or other contract or
agreement through which the assistance
Is provided to the reciplent.'
(b) Where the applicant or recipient
Itself will perforrit all or part of the work
In connection with a section 3 covered
project within the meaning of these
regulations. with either permanent or
temporary staff by force account, it will
provide the Department with all forms
+..- and-assurances required of a contractor
or subcontractor by these regulations
prior to the execution of any loan or
grant agreement.or other contract or
agreement through which assistance- Is
provided.
• (c) Where the appllciisk recipient or
_ contractor sells, leases. ra
tnsfers -or
"`otherwise conveys land upon'whlch work
In connection with a section 3 covered
project within the meaning of these reg-
ulations Is to be performed (for exam-
ple. under the Urban Renewal or Neigh -
borhood Development programl. It shalt
Include In each contract or subcontract
i for work on such land a clause requiring
the purchaser. lessee. or redeveloper to
assume the same obligations as a con-
tractor for work under section 3 of these
regulations (including the incorporation
of the Ass) ranee of Compliance language
i specified In 1135.20).
010-908-39 ,
RULES AND REGULATIONS 3J?r,
• (d) Each such purchaser, lessee, or re-
developer shall be relieved of such obll-
gations upon satisfactory completion or
all work to be performed under the terms
of the redevelopment contract.
Subpart 3— Utilization of Lower Income
Area Residents as Trainees
§ 13S.40 Cenernl.
Each applicant. recipient. eoutractor
or subcontractor undertaking work in
connection with a section 3 covered proj-
ect shall fulfill his obligation to utilize
lower income project area residents as
trainees to the greatest extent feasible
by:
(a) Utilizing the maximum number of
persons In the various training categories
in all phases of the work.,to be performed
under the section 3 covered• project; and
(b) Filling all vacant training posi-
tious with lower Income project area
residents except for those training posi-
tions which remain unfilled after a good
faith effort has been made ,to fill them
with eligible lower income project area
residents.
§ 135.45 F•tai,lisl,ing number of
Trainees.
(a) For the building construction oc-
cupations, the number of trainees or ap-
prentices for each occupation shall be
that number which can reasonably be
utilized in each occupation on each phase
of a section 3 covered project and In no
event shall that number be less than the
number of trainees or apprentices deter-
mined pursuant to regulations Issued by
the Secretary of Lnbor for each building
construction occupation.,
(b) For nonconstruction occupations
or for any building construction occupa-
tions for which ratios are not deter-
mined pursuant to regulations of the Sec-
retary of Labor, the number of trainees
for each occupation shall be that number
which can reasonably be utilized in each
occupation on each phase of a section 3
covered project. The applicant, recipient.
contractor, or subcontractor shall inl-
ttally determine the maximum number
of trainees for each occupation and sub-
mit that determination along with its
Justification to the Department.
§ 135.S0 Good fnitlr effort.
(a) Each applicant. recipient. contrac-
tor, or subcontractor seeking to establish
that a good faith effort as required by
1135.40 has been made to fill all train-
ing positions with lower income area resi-
dents shall. as a minimum. set forth evi-
dence acceptable to the Secretary that'
-it has: _ -
(1) Ascertained from the Department's
Regional Administrator. Area Office Di-
rector. or FHA Insuring Office Director
having jurisdiction over the section 3
covered project, the boundaries of the
section 3 covered project area: and
(2) Attempted to recruit from the ap-
propriate areas the necessary number of
Icwer income residents through: Local
advertising media, signs placed at the
proposed site for the project. and com-
munity organizations and public or pri-
vate Institutions operating within or
serving the project area such as Service
Employment and Redevelopment #SEt).
Opportunities Industrialization Center
(OIC). Urban League. Concentrated Em-
ployment Program. or the U.S. Employ-
ment Service.
(3) Maintained a list of all lower In-
come area residents who have applied
either on their own or on referral from
any source, and employ such persons, if
otherwise eligible and if a trainee va-
cancy exists. If the contractor has no
vacancies, the applicant. If otherwise
eligible, shall be listed for the first avail-
able vacancy.
(b) Any applicant. recipient. contrac-
tor. or subcontractor which fills vacant
1135.45 apprentica or trainee postUors
in its organization immediately prior to
undertaking work pursuant to a section 3
covered project shall set forth evidence
acceptable to the Secretary that Its ac-
tions were not an attempt to circumvent
these regulations.
Subpart C-- Utilization of Lower income
Area Residents as Employees
§ 135.60 Gaud faith effort.
Each applicant, recipient, contractor
or subcontractor undertaking work In
connection with a section 3 covered proj-
ect shall fulfill his obligation to utilize
lower income project area residents as
employees to the greatest extent feasible
by:
(aVIdentifSing the number of posi-
tions In the various occupational cate-
gories Including skilled. semiskilled, and
unskMed labor, needed to perform each
phase of the section 3 covered project: i
(b) Identifying of the positions iden*.£-
fled in paragraph (a) of this section. the i
number of positions in the various oc-
cupational categories • which are cur- !
rently occupied by regular; permanent
employees:
(c) Identifying. of the positions
identified in paragraph (a) of this sec-
tion. the number of positions In the vari-
ous occupational categories which are -
not currently occupied by regular. per-
manent employees:
(d) Establishing. of the positions
identified In paragraph (c) of this sec -
Lion. a goal which Is consistent with the
purpose of this subpart within each oc-
cupational category of the number of
positions . to be filled by lower income- -
residents of the section 3 covered project
area: and -- —
(e) .Making a good faith effort to fill.
all of the positions Identified In para-
graph (d) of this section with lower in -:
come project area residents.
§ 135Si Ceneral. ... - -._
(a) Each applicant, recipient. contrac-
tor. or subcontractor seeking to establish
that a good faith effort as required by---.
paragraph (e) of 1135.55 has been made
to fill all employment positions identified
in paragraph (d) of 9 135.55 with lower
Income project area residents shall. as a-
minimum, set forth evidence acceptable
to the Secretary that It has:
(1) Ascertained from the Department's
Regional Administrator. Area Office Dl-
rector. or PHA Insuring OMce Director
VIDNAL REGISTER. VOL 38, HO. 203 — TUESDAY. OCTOafR 23. 1973
+1c).C1rnCJ `i
Subpart C--- Utilization of Lower Income
Area Residents as Employees
§13S.60 Qx-J fmid, effurt.
Each applicant. recipient, contractor
or subcontractor undertaking work In.
connection with a section 3 covered prot-
ect shall fulfill his obligation to utilize
lower income project area residents as
employees to the greatest extent feasible
by:
(a) ldentif;.ag the number of po:%I-
tions in the various occupational cate-
gories Including skilled, semiskilled. and
unskilled labor. needed to perform each
phase of the section 3 covered project:
(b) Identll:;ing of the positions Identi -'
tied in paragraph (a) of this section. the
number of positions In the various oc-
cupational categories • which are cur-
rently occupied by regular; permanent
employees:
(c) Identidying. of the positions
Identified in paragraph (a) of this sec-
tion, the number of positions in the vari-
ous occupational categories which are
not currently, occupied by regular, per-
manent employees:
(d) Establishing. of the positions
identified in paragraph (c) of this sec-
tion, a Goal which is consistent with the
purpose of this subpart within each oc-
cupational categot9 of the number of r
positions to be filled by lower income ;
residents of the section 3 covered project
area: and
(e) Making a good faith effort to fill
all of the positions identified In para-
graph :
e project area residents. lower In-
come
135.55 General.
(a) Each applicant. recipient, contrac-
tor. or subcontractor seeking to establish
that a good faith effort as required by
paragraph (e) of 1135.55 has been made
to 811 all employment positons Identified
in paragraph (d) of 1135 . 55 with lower
income project area residents shall. as a
minimum. set forth evidence acceptable
to the Secretary that it has:
(1) Ascertained;from the-Department's
Regional Administrator. Area Office Di-
rector, or PHA Insuring Office Director
9 08 -3h
,2 t
i
having jurisdiction over the section 3
covered project the boundaries of the
section 3 covered project area: and
(2) Attempted to recrult from the ap-
propriate areas the rececsary number o;
lower income residents through: Local
advert-Wrist media. ggns;...placed_a�
ro osed site_for the ro ect and com-
munity organizanons and pub is or liti-
v liisEitutipns operating - itli `or
serving the project area such as Pr e_e_
Area Committees (PAC) i'ri' "ti'roan r "e=
newal areas, Model Cities citiieri aurisory
boards. Service Empioyrient and 'P.ede-
velopment (SER) - OpO rtubltles=7ads35-
trialization Center (01C). Urban League.
Concentrated Ea:ploy=en L Progr or
the U.S. Employment Service.
(b) Any applicant, recipient, contrac-
tor, or subcontractor which fills vacant
ti 135.55(d) employment positions In its
organization immediately prior to under-
taking Rork pursuant to a sectioW3 cov-
ered contract shall set forth evidence
acceptable to the Secretary that Its ac-
tions were not an attempt to circumvent
these regulations_
• (c) When to ter income resieent
workers apply, ei' ter on theirown initia-
tive or on referral from any source, the
recipient. contractor, or subcontractor
shall determine the qual" cations of such
persons and shall e:np.oy such persons
if their qualificatiors are satisfactory
and the contractor has openings. If the
recelplent, contractor, or subcontractor .
is unable to employ the workers, such
persons shall be listed for the first avail-
able opening.
W1
known, such information shall be sup-
plied prior to the signing of any con-
tract between contractors and their
subcontractors.
(b) When a biddLu"rocedure is used
to_let _jhe_ contract,. -the- •invitation- or
soliTEation for bids shall advise prospec-
`tiveE contractors of the requirements of
Ikese regulations. When the cant. -act is
pursuant to negotiation or methods
.'er than formal bidding procedures.
prospective contractors shall be advised
by the contracting party of the require-
ments of these regulations as part of the
contract specifications.
§ 13530 Other applicant and recipient
obligations.
Every applicant and recipient shall as-
sist and actively cooperate with the Sec-
retary in obtaining the compliance of
their contractors and 'subcontractors
with the requirements of these regula-
tions. including cooperation and assist-
ance in distributing and collecting forms
and Information, and in notifying con-
tracting parties and contractors of vio-
lations of these regulations. and shall re-
frain from entering into any contract
with any contractor after notification by
the Department that the contractor has
been found In violatioa,of these regula-
tions pursuant to 4135.110(1) -
§ 13535 Effectuation of applicant oltli.
gatiom in direct and indirect rela-
tionlripa.
(a) Where the applicant for asslst-
4mKe under a section 3 covered project
the reciplent of such assistance are
,..,c one and the same, the recipient shall
be regarded as the successor in interest
of the applicant and shall have the same
obligations as the applicant with respect
to compliance with these regulations.
These obligations shall be incorporated,
specifically or by reference in the loan
or grant agreement or other contract or
agreement through which the assistance
h provided to the recipient.
(b) 'Where the applicant or recipient
Itself will perform all or part of the work
In connection with a section 3 covered
project within the meaning of these
'regulations with either permanent or
' temporary staff by force account, it will
provide the Department with all fortes
- and - assurances required of a contractor
or subcontractor by these regulations
prior to the execution of any loan or
grant agreement , or other contract or
agreement through which assistance • is
provided.
(c) Where the applicant. recipient or-
contractor sells. leases, transfers or
otherwise conveys land.upon which work
In connection- with a section .3 covered
ect within the meaning of these reg-
.( ions is to be performed (for exam.
.._, under the Urban Renewal or Neigh.
boyhood Development program). it shall
Include in each contract or subcontract
for work on such land a clause requiring
the purchaser. lessee, or redeveloper to
assume the same obligations as a con -
tractor for work under section 3 of these
regulations (including the incorporation
of the Assurance of Compliance language
specified In 113320).
RULES AND REGULATIONS
(d) Each Such purchaser, lessee, or re-
developer shall be relleved of such obll-
gations upon satisfactory completion of
all wort: to be performed under the terms
of the redevelopment contract.
rt E — Utilization of Lower income
Area Residents as Trainees
§ 135.40 Gent-ml.
Each applicant. recipient, contractor]
or subcontractor undertaking work In
connection with a section 3 covered proj-
ect shall fulfill his obligation to utilize
lower Income project area residents as
trainees to the greatest extent feasible
by:
(a) Utilizing the maximum number of
persons In the various training categories
in all phases of the work to be performed'
under the section 3 covered project; andl
(b) Filling all vacant training posi-
tions with lower income project areal
residents except for those training post -,
tions which remain unfilled after a good
faith effort has been made to fill therm
frith eligible lower income project areal
residents. I
§ 135.45 Etnabli.-hing number of
trn;nees.
(a) For the building construction oc
cupaUons. the number of trainees or ap-
prentices for each occupation shall be
that number which can reasonably be
utilized in each occupation on each phase
of a section 3 covered project and in no
event shall that number be less than the
number of trainees or apprentices deter-
mined pursuant to regulations issued by
the Secretary of Labor for each building
construction occupation_
(b) For nonconstruction occupations
or for any building construction occupa-
tions for which ratios are not deter-
mined pursuant to regulations of the Sec-
retary of Labor, the number of trainees
for each occupation shall be that number
which can reasonably be utilized in each
occupation on each phase of a section 3
covered project. The applicant. recipient.
contractor. or subcontractor shall ini-
tially determine the maximum number
of trainees for each occupation and sub-
mit that determination along *Ith its
justification to the Department.
§ 13540 Good faith effort.
(a) Each applicant. recipient. contrac-
tor, or subcontractor seeking to establish
that a good faith effort as required by
1135.40 has been made to All all train -
ing'poattions with lower income area rest -
dents shall. as a minimum. set forth evi-
dence acceptable to the Secretary that
.it has:
(1) Ascertained from the Department's.
Regional Administrator. Area Office Di-
rector, or FHA Insuring Office Director
having jurisdiction over the section 3
covered project. the boundaries of the
section 3 covered project area; and
(2) Attempted to recruit from the ap-
propriate areas the necessary number of
lower income residents through: Local
advertising media. signs placed at the
proposed site for the project. and com-
munity organizations and public or pri-
vate institutions operating within or_
90208 -3i
serving the project at, such as Service'
Emplo) -ment and Redevelopment (SER).
Opportunities Industrialization Center
I(OIC). Urban League. Concentrated Era -
Iployment Program. or the U.S. Employ-
ment Service.
(3) Maintained a list of all lower In-
come area residents who have applied
either on their own or on referral from
• any source, and employ such persons. If
!otherwise eligible and if a trainee va-
1cancy erists. If the contractor has no
{vacancles, the applicant, if otherwise
'eligible, shall be listed for the first avail-
able vacancy.
(b) Any applicant, recipient, contrac-
tor. or subcontractor which fills vacant
'l 135.45 apprentice or trainee positions
)n Its ordazlzation immediately prior to
'under caking work pursuant to a section 3
aovered project shall set forth evidence
cceptable to the Secretary that its ac-
tions were not an attempt to circumvent
Subpart C— Utilization of Lower Income
Area Residentsas Employees
§135.60 Good faith effort.
Each applicant, recipien4 contractor
or subcontractor undertaking work in
connection with a section 3 covered proj-
ect shah fu= his obligation to utilize
lower Income project area residents as
emplayees.to the greatest extent.feasible
by:
(a) Id- attfsins the number of post -
dons In. 'Ke various occupational cate-
ftorles Including skilled, semiskilled, and
unskilled labor, needed to perform each
pan=e of tae section 3 covered project:
tb) Identifying of thepositions identi -'
fled in paragraph (a) of this section. the
number of positions in the carious oc-
cupational categories - which are cur-
rently occupied by regular; permanent
employees:
(c) Identifying. of the positions
Identified In paragraph (a) of this sec-
tion. the number of positions in the varI-
ous occupational categories which are .
not currently occupied by regular, per -
manent employees; -
(d) Establishing, of the positions
Identified in paragraph (c) of this sec-
tion. a goal which !s consistent with the
purpose of this subpart within each oc-
cupational category of the number of
positions to be oiled by lower income
residents of the section 3 covered project
area; and
(e) Making a good faith effort to fill
all of the positions identified in pam
graph (d) of this section with lower in-
come project area residents. -
§ 135.3. -s .Ccnrral.
(a) Each applicant. recipient. contrac-
tor, or subcontractor seeking to establish -
that a good faith effort as required by.
paragraph (e) of 1133.55 has been made
to fill all employment positions identified
in paragraph (d) of 4 135.55 with lower
Income project area residents shall. as a
minimum, set forth evidence acceptable
to the Secretary that it has:
(1) Ascertained from the Department
Regional Administrator. Area Office III -
rector. or FHA Insuring Office Director
iEDERAt REWSTE11, VOL 38, HO. 203 - 11JESDAY. OCTOBER 23, 1973
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