Summary of Affirmative Action Requirements

TABLE OF CONTENTS

I.   Executive Summary

II.   Section 3 of the Housing and Urban Development Act of 1968
      (12 U.S.C. 1701u)

III.   SFHA Commission Resolution No. 4967

IV. Executive Order 11246

V.   Minority-Owned and Women-Owned Business Enterprise
      (MBE/WBE) Opportunities

VI.   San Francisco First Source Hiring Program

VII.   Resident-Apprentice Hiring Program

VIII.   Employer and Employee Tax Credits

IX.   Related Documents

I. EXECUTIVE SUMMARY

A. This document describes the Affirmative Action Requirements for covered construction and construction-related contracts. It references applicable Federal regulations and Housing Authority Resolutions, and provides sources for documents and organizations.

B. Goals and Requirements Highlights:

1. Low-Income Hiring: 30% of all new hires in each construction trade (Section 3).
2. SFHA Resident Hiring: 25% of the total workforce (Resolution No. 4967).
3. MBE/WBE Firms: 20% of the aggregate involvement (Resolution No. 2444).
4. Non-Compliance Penalties: Breach of contract, termination, suspension, debarment, $45.00 per hour for shortfalls in hours worked by residents (Resolution No. 4967).

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II. SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 (12 U.S.C. 1701u)

A. The Housing Authority of the City and County of San Francisco (SFHA) requires compliance with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), as amended, and its accompanying regulations in 24 CFR 135 (hereinafter called Section 3).

B. Related Documents:

1. 24 CFR 135.
2. Appendix to 24 CFR Part 135, Examples of Efforts to Offer Training and Employment Opportunities to Section 3 Residents.
3. General Conditions of the Contract for Construction, HUD-5370 (3/97), Clause 40.
4. General Contract Conditions, Non-Construction, HUD-5370-C (5/92), Clause 19.

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III. SFHA COMMISSION RESOLUTION NO. 4967

A. SFHA Commission Resolution No. 4967 adopted February 22, 2001, increases the Section 3 requirements contained in 24 CFR Part 135 to require that residents of SFHA public housing constitute a minimum of twenty-five percent (25%) of the total workforce (calculated by person-hours).

B. Covered Contracts: Construction contracts over $25,000 and non-construction contracts over $50,000.

C. Compliance: The contractor's good faith efforts will be evaluated by the SFHA Contracting Officer using Appendix to 24 CFR Part 135, Examples of Efforts to Offer Training and Employment Opportunities to Section 3 Residents. Non-compliance can result in penalties of $45.00 per hour for shortfalls in hours worked by residents, breach of contract, or termination, as described in Resolution No. 4967.

D. Related Documents:

1. SFHA Commission Resolution No. 4967 adopted February 22, 2001.
2. Appendix to 24 CFR Part 135, Examples of Efforts to Offer Training and Employment Opportunities to Section 3 Residents.

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IV. EXECUTIVE ORDER 11246

A. Under Executive Order 11246 of September 24, 1965, as amended, the SFHA requires the inclusion of the "Notice of Requirement for Affirmative Action To Ensure Equal Employment Opportunity" and the "Standard Federal Equal Employment Opportunity Construction Contract Specifications" as a condition of any grant, contract, subcontract, loan, insurance or guarantee involving federally assisted construction in excess of $10,000.

B. Related Documents:

1. 41 CFR Part 60.4.
   1. Notice of Requirement for Affirmative Action To Ensure Equal Employment Opportunity (Executive Order 11246), 41 CFR Part 60-4.2 (d).
   2. Standard Federal Equal Employment Opportunity Construction Contract Specifications (Executive Order 11246), 41 CFR Part 60-4.3 (a).
2. General Conditions of the Contract for Construction, HUD-5370 (3/97), Clause 39.
3. General Contract Conditions, Non-Construction, HUD-5370-C (5/92), Clause 14.

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V. MINORITY-OWNED AND WOMEN-OWNED BUSINESS ENTERPRISE (MBE/WBE) OPPORTUNITIES

A. Consistent with Executive Orders 11625, 12138, and 12432, and section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), as amended, the SFHA shall make efforts to ensure that small businesses, women-owned business enterprises, minority-owned business enterprises, labor surplus area business, and individuals or firms located in or owned in substantial part by persons residing in the area of an SFHA development are used when possible.

B. SFHA Commission Resolution No. 2444 adopted February 25, 1982, established SFHA MBE/WBE requirements: it is the goal of the SFHA to achieve, to the greatest extent possible, a twenty percent (20%) aggregate involvement of MBE/WBE's in construction contracts and procurement activities, by dollar volume.

C. Compliance: The San Francisco Human Rights Commission (415-252-2500) maintains a list of certified MBE/WBE firms, and will determine whether a firm is considered bona fide.

D. Related Documents:

1. SFHA Commission Resolution No. 2444 adopted February 25, 1982.
2. General Conditions of the Contract for Construction, HUD-5370 (3/97), Clause 8.

VI. SAN FRANCISCO FIRST SOURCE HIRING PROGRAM

A. SFHA Commission Resolution No. 4886 adopted April 27, 2000, requires participation in the San Francisco First Source Hiring Program for entry-level positions. The Contractor, developer, or commercial tenant must submit job specifications and descriptions for each entry-level position to be filled to:

First Source Hiring Program
Workforce Development System
1 Dr. Carlton B. Goodlett Place, Suite 448
San Francisco, CA 94102

B. The First Source Hiring Program will distribute the Contractor's entry-level position requirements to the Community-Based-Organizations for possible referrals. Referrals through the First Source Hiring Program will comply with the order prescribed for Section 3 residents.

C. The First Source Hiring Program must be used to fill future entry-level positions for lessees of properties owned in full or in part by the SFHA.

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VII. RESIDENT-APPRENTICE HIRING PROGRAM

A. The SFHA is a party to a Memorandum of Understanding with the Building and Construction Trades Council (the "MOU") which establishes a Resident-Apprentice Training Program. The goal of the MOU is to involve trained residents as apprentices and ultimately as journeypersons in Local Authority's construction projects. The Contractor must comply with the hiring requirements of the MOU in the performance of this Contract. The operative hiring requirements of the MOU are as follows:

1. All craftwork performed for this Project will be performed in accordance with the terms of the applicable collective bargaining agreement for the jurisdiction of this work.
2. Craft workers, including apprentices, shall be obtained in accordance with the MOU and applicable collective bargaining agreements, without regard to or discrimination based on race, sex, creed, national origin, religious affiliation or union affiliation and in full compliance with all applicable state and federal laws.
3. The ratio of Journeypersons to Apprentices shall not exceed 3:1. All available apprenticeship positions shall go to residents. For resident-apprentice recruitment information, contact the SFHA Contract and Procurement Division, 440 Turk Street, San Francisco, CA 94102 (415-241-1046).
4. All contracting and subcontracting, at all levels, shall conform to SFHA policies, HUD regulations, and the goals for Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Resident Business Enterprise participation established by HUD and/or the SFHA.

B. Related Documents:

1. Memorandum of Understanding with the Building and Construction Trades Council.
2. Confirmatory Letters dated August 2, 1996; August 1, 2000; and July 27, 2001 and August 6, 2001.

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VIII. EMPLOYER AND EMPLOYEE TAX CREDITS

A. General: There are various tax credits available to both employers and employees through Federal, State and City of San Francisco programs. By hiring through a qualified program, a business may be eligible for thousands of dollars in tax credits as well as On-the-Job Training subsidies for a new employee. Each prospective contractor should consult a competent professional advisor for specific guidance about the tax credits as well as other related tax incentives, deductions or benefits.

B. Private Industry Council (PIC): The Business Services Manager of PIC in San Francisco (415-431-8700) can help fill job openings through referrals of qualified job seekers participating in the PIC Job Training program.

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IX. RELATED DOCUMENTS

A. Documents referenced herein are on file at the SFHA Contract and Procurement Division, 440 Turk Street, (415-241-1041) and the SFHA Housing Development Division, 1815 Egbert Avenue, (415-715-3210). Copies will be furnished upon request. The documents are also available at the SFHA web site, www.sfha.org.

B. List of Documents:

1. SFHA Commission Resolution No. 2444 adopted February 25, 1982.
2. SFHA Commission Resolution No. 4886 adopted April 27, 2000.
3. SFHA Commission Resolution No. 4967 adopted February 22, 2001.
4. 24 CFR Part 135.
5. Appendix to 24 CFR Part 135.
6. 41 CFR Part 60-4.
7. General Conditions of the Contract for Construction, HUD-5370 (3/97).
8. General Contract Conditions, Non-Construction, HUD-5370-C (5/92).
9. Memorandum of Understanding with the Building and Construction Trades Council.
10. Confirmatory Letters dated August 2, 1996; August 1, 2000; and July 27, 2001 and August 6, 2001.

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