Here are some common questions – and answers – about working with AHPA as a Section 3 company:
Q. What is a Section 3 business and what types of economic opportunities are available under Section 3?
A. A Section 3 business is a business that: Is at least 51 percent or more owned by Section 3 residents; has a work force where at least 30% of employees are Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or provides evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to a Section 3 business concern.
Q. What are the benefits of being a Section 3 business?
A. You can be awarded a share of HUD funding from construction and non-construction related projects every year. If you are eligible, and not certified, you could miss out on this opportunity. Your business may receive preference consideration for awards on all Section 3 HUD-funded projects in which you have submitted a formal bid. HACP provides a Section 3 business list for developers and contractors who are interested in fulfilling their Section 3 requirements with subcontracting work.
Q. What information do I need in order to certify my company as a Section 3 business?
A. You must provide documentation that you are a business. This may include: Copy of Incorporation, Certificate of Good Standing, Fictitious Name Certification, List of owners/stockholders, Partnership Agreement, Operation Agreement, or any additional documentation
You must also provide documentation for at least one of the following categories:
- Section 3 Owned Enterprise
- Subcontracting 25 percent of the dollar awarded to qualified Section 3 business
- At least 30 percent of their workforce are currently Section 3 residents or were Section 3 eligible residents within 3 years of date of first employment with the business
Q. What about for a business claiming status as a Section 3 resident-owned enterprise?
A. You must provide certification for Section 3 Residents (at least 51% of the business owners).
Q. What about for business claiming Section 3 status by subcontracting 25% of the dollar award to qualified Section 3 business?
A. List of subcontracted Section 3 business(es) and subcontract amount supporting documentation for each subcontracted Section 3 Business.
Q. What about for a business claiming Section 3 status, claiming at least 30 percent of their workforce are currently Section 3 residents or were Section 3 eligible residents within 3 years of date of first employment with the business?
A. You must provide: a list of all current full-time employees, a list of employees claiming Section 3 status, and certification for Section 3 residents (supporting documents showing Section 3 status immediately prior to date of first hire).
Q. Who should I contact to begin the process of certifying to be a Section 3 business?
A. Contact: Larry Shoeman, Executive Director & Section 3 Coordinator, Avon Park Housing Authority, 863-452-4432, Ext. 2204.