Mississippi State Port Authority's Section 3 Plan Port Restoration

Mississippi Administrative Code

Section: 28-309

Jurisdiction: MS

Bluebook Citation: 28 Miss. Admin. Code Pt. 309

Part 309. Mississippi State Port Authority’s Section 3 Plan Port Restoration

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Section 3 Plan Port Restoration

Table of Contents Introduction and General Policy Statement .................................................................................... 1 Section 3 Purpose............................................................................................................................ 1 MSPA Section 3 Outreach & Training Activities........................................................................... 1 Assuring Compliance with Section 3 Policies ................................................................................ 3 MSPA Section 3 Employment & Contracting Goals ...................................................................... 4 Hiring Policies for Achievement of MSPA Section 3 Hiring Goals .............................................. 7 Certification of Section 3 Eligible Residents .................................................................................. 8 MSPA Preference for Contracting with Section 3 Business Concerns........................................... 9 Certification of Section 3 Business Concerns ................................................................................. 9 Efforts to Award Contract Opportunities to Section 3 Business Concerns .................................. 10 Documenting Section 3 Efforts ..................................................................................................... 10 Section 3 Complaint Procedures ................................................................................................... 11 Section 3 Definitions..................................................................................................................... 13 HUD Hiring Categories ................................................................................................................ 17

APPENDICES APPENDIX A – Section 3 Contract Clause APPENDIX B – Section 3 Project Plan APPENDIX C – Section 3 Hiring Plan APPENDIX D – Section 3 Subcontracting Plan APPENDIX E – Section 3 Business Concern Certification APPENDIX F – Section 3 Resident Certification APPENDIX G – Section 3 Hiring/Subcontracting Activity Report APPENDIX H – Section 3 Project Summary Report APPENDIX I – HUD Job Applicant Survey

Introduction and General Policy Statement The Mississippi State Port Authority (sometimes referred to herein as the “MSPA” or the “Port Authority”) continues to rebuild the Port at Gulfport which was nearly completely destroyed by Hurricane Katrina on August 29, 2005. In response to the devastation, Congress allocated federal aid through a U.S. Housing and Urban Development Community Development Block Grant to reestablish a sustainable port. The federal aid purposes are supported by the policies of the Mississippi State Port Authority and described in this Section 3 Plan. This Section 3 Plan outlines and describes the Mississippi State Port Authority’s policies for notifying Section 3 residents and business concerns about employment, training and contracting opportunities and the Port Authority’s, including its Contractors and Subcontractors, obligations concerning outreach, recordkeeping, monitoring and enforcement activities to ensure the Port Authority is, to the greatest extent feasible, directing employment and contracting opportunities to Section 3 residents and business concerns. Section 3 Purpose Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u) and implementing regulations at 24 C.F.R.135 (Section 3) requires recipients and subrecipients such as the Mississippi State Port Authority to ensure that employment and other economic and business opportunities generated by the Department of Housing and Urban Development (HUD) financial assistance shall, to the greatest extent feasible, consistent with existing Federal, State and local laws and regulations, are directed to low- and very low- income persons, particularly recipients of government housing assistance, and business concerns that provide economic opportunities to low- and very low-income persons. The Mississippi State Port Authority fully embraces the spirit and intent of Section 3 and has set forth policies and procedures in accordance therewith. Such policies are applicable to contractors, subcontractors and others engaged in projects funded through the Mississippi State Port Authority with funds sourced from HUD. In implementation of these policies and in order to assist in the achievement of the primary objective of connecting low- and very low-income persons with economic opportunities associated with the Port Authority’s Section 3 Covered Projects, the Port Authority has created a full-time, dedicated staff position for a Compliance Officer tasked with monitoring and enforcement of the Port Authority’s Section 3 policies. MSPA Section 3 Outreach & Training Activities To further facilitate the Port Authority’s commitment to the achievement of the numerical goals for itself and its Contractors and Subcontractors, the Port Authority supports broad outreach, education and training relative to Section 3. The cornerstone of the Port Authority’s outreach and training effort is the establishment of the Pathways to the Port Program.

MSPA, in conjunction with the Mississippi Development Authority (the “MDA”), has partnered with the Mississippi Department of Employment Security (“MDES”) to recruit and refer eligible applicants, and to provide employers with a one-stop resource for job posting and qualified workers. MDES operates a network of WIN Job Centers which have traditionally been the link between employers and the workforce. The Centers provide applicants with assessment, job search and placement assistance, as well as access to computers and job readiness training. Applicants in need of additional training will be screened and referred to training providers. MDES has developed the Workforce Investment Global Services or “WINGS”, an integrated web solution that can be used by employers to post jobs, find qualified applicants and manage job applications posted in the system. The process is as follows: • • • •

•

Pathways Program will require all the Program Participants to submit job postings through WINGS for all newly created or replacement positions. The WIN Job Center will provide a list of qualified job seekers with preference to lowand very low- income persons. MDES will provide the Program participant with the list of qualified job seekers from the WIN Job Center. The Pathways to the Port participant will then interview the candidates qualified for the open position and may choose to hire from the list provided if possible. Once the program participant has made a hiring decision regarding the position, the participant shall inform MDES of its decision. When a candidate is chosen from the list or another source, the Program participant will complete the Job Applicant Survey Form (substantially in the form set forth in Appendix I) and submit it to the Compliance Officer or its designee for recordkeeping and reporting. .

The Pathways Program will be a focused and accountable model initiative. Applicants will be tracked in the State’s performance management system to measure and report on hiring and other outcomes. Program Outreach: MSPA jobs outreach program in order to quantify the direct and indirect jobs of contractors and subcontractors resulting from the Port Authority’s Section 3 Covered Projects and to make them available to all sections of the community, including low- to very low- income residents. The entire community in the vicinity of the Port at Gulfport will be targeted. The community shall consist of the MSA. 1 However, particular attention will be paid to low- and very lowincome persons. The outreach campaign will include purchasing authorities, community-based organizations, WIN Job Centers, libraries, and media resources (e.g., The Sun Herald, WLOX, posting and distributing flyers, a website).

http://www.mississippi.org/assets/docs/maps/msas.pdf.

Workforce Training The State of Mississippi has successfully developed a workforce training system utilizing the resources of the State’s network of community colleges, senior colleges, State and local economic development agencies, and related business entities. This system has successfully provided hundreds of citizens, many of whom are low- and very low income- persons, with the job training and related education to find employment with the major manufacturing industries and businesses of the State, including Nissan and Toyota. This system has been nationally recognized for its innovation and abilities to provide a highly skilled workforce for these industries. The Pathways Program will partner this approach with existing state workforce system, to plan, implement and oversee training, recruitment, and hiring needs for the Port and the Program Participants. The Pathways Program will identify the fundamental/core skills needed in order to equip unskilled and under-skilled workers to fill entry-level demand jobs. The Pathways Program will work with businesses, community colleges, and other training providers as necessary to meet job training needs. Training will be easily accessible, flexible and will be provided at very low or no cost to eligible applicants. Three key training providers have been identified: (1) the Mississippi Gulf Coast Community College, which has three campuses and has offered the use of its West Harrison Center located in Harrison County to be used exclusively for the Pathways Program training; (2) Pearl River Community College, which has campuses in Hancock and Pearl River County; and (3) the Ship Building Academy located in Jackson County. Existing curriculum will be customized to meet training needs. Training will lead to portable industry recognized credentials. Existing training includes, logistics, diesel equipment and office system technologies; heavy equipment operations; construction skills; OSHA; crane simulation; commercial truck driving and career readiness certificates. The Compliance Officer will also evaluate Section 3 eligibility based on the data submitted by contractors. The Compliance Officer shall review and have oversight over all certifications. Assuring Compliance with Section 3 Policies Applicants will be tracked in the State’s performance management system to measure and report on hiring and other outcomes. The Section 3 Clause (see Appendix A) and implementation of all Section 3 Reporting Forms (as referenced in the Table of Contents above) become part of the contractual documents between the Port Authority and any Contractor and their Subcontractors. Further, the Port Authority shall require the Section 3 Clause and the implementation of the Section 3 Reporting Forms to be incorporated into any contract between a Contractor and Subcontractor. The Compliance Officer is available to provide technical assistance to Contractors, Subcontractors, and others during the course of the Section 3 Covered Project. The Compliance Officer will routinely monitor each party’s continued compliance with the reporting requirements specified in the Section 3 Reporting Forms, any party’s failure to properly satisfy such requirements can be construed by the Port Authority as a breach of such party’s contract and may further result in the Port 3

Authority’s termination of such contract and debarment or suspension of such party from future Port Authority HUD-assisted contracts. MSPA Section 3 Employment & Contracting Goals The MSPA has set minimum numerical goals for the Project to ensure that, to the greatest extent feasible, economic opportunities are provided to Section 3 residents and Section 3 business concerns. The Port Authority’s current minimum Section 3 goals are as follows: • •

Employment: Thirty percent (30%) of the aggregate number of new hires during each year of the project; Contracting: (a) At least ten percent (10%) of the total dollar amount of all Section 3 covered contracts for public construction, and (b) At least three percent (3%) of the total dollar amount of all other covered Section 3 contracts to eligible Section 3 business concerns.

The goals established by this section apply to the entire amount of Section 3 covered assistance under the Project. The Port Authority will further ensure that, to the greatest extent feasible, its Contractors and/or Subcontractors provide training, employment and contracting opportunities to Section 3 residents and Section 3 business concerns. The Compliance Officer will be responsible for reviewing the new hire clause with Contractors and Subcontractors to ensure that the requirement is understood. It is not intended for contractors and subcontractors to terminate existing employees, but to make every effort feasible to employ Section 3 program participants before any other person, when hiring additional employees needed to complete proposed work to be performed with HUD funds. Contractors: •

Shall incorporate the Section 3 Clause (Appendix A) in their contracts and subcontracts.

•

Shall submit a Section 3 Project Plan (substantially in the form set forth in Appendix B), Section 3 Hiring Plan (substantially in the form set forth in Appendix C) and Section 3 Subcontracting Plan (substantially in the form set forth in Appendix D), if applicable, with their proposals detailing the estimate of the number of employment and/or subcontracting opportunities to be generated by the initial contract, for approval in accordance with the MSPA’s Section 3 Plan and shall incorporate and implement such plans in connection with their contracted activities. The Contractors’ plans must be reflective of the MSPA’s Section 3 goals.

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Shall document and report all efforts made toward the implementation and achievement of goals contained with their approved Section 3 Project Plan and Section 3 Hiring Plan, including detailed narratives of all interviewing, hiring and training activities. Contractors shall maintain records documenting such activities to be made available for monitoring and compliance reviews. 4

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Shall along with supporting documentation submit the Section 3 Business Certification (substantially in the form set forth in Appendix E) in connection with the retention or certification of any Section 3 business concerns.

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Shall, as applicable, submit the Section 3 Resident Certification (substantially in the form set forth in Appendix F) along with supporting documentation in connection with the interviewing, training or hiring of any Section 3 resident. Copies of all supporting documentation shall be maintained by contractors and available for monitoring and compliance reviews.

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Shall, on a monthly basis, timely submit to the MSPA all required Section 3 Reports, including the Section 3 Status Report Hiring/Subcontracting Activity form (substantially in the form set forth in Appendix G) to MSPA and the Section 3 Project Summary Report (substantially in the form set forth in Appendix H).

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Shall, if applicable, demonstrate and document to the satisfaction of the Compliance Officer why meeting the Section 3 numerical goals was not feasible for Contractor or its Subcontractor(s).

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Shall report their employment opportunities to the Compliance Officer or its designee. Contractors shall post all employment opportunities with the MS WIN Job Center and shall review the MS WIN Job Center job-seeker postings provided prior to filling any position for the Project.

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Shall perform such other Section 3 compliance activities as may be reasonably requested by the Port Authority.

Subcontractors •

Shall incorporate the Section 3 Clause in their contracts and subcontracts.

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Shall submit a Section 3 Hiring Plan and Section 3 Subcontracting Plan along with supporting documentation to their respective Contractors for submission to and approval of the MSPA. Subcontractors shall incorporate and implement such plans in connection with their contracted activities. The Subcontractor’s plans must be reflective of the MSPA’s Section 3 goals.

•

Shall document and report all efforts made toward the implementation and achievement of goals contained within their approved Section 3 Hiring Plan and Section 3 Subcontracting Plan, including detailed narratives of all interviewing, hiring and training activities. Subcontractors shall maintain records documenting such activities to be made available for monitoring and compliance reviews.

•

Shall, as applicable, submit the Section 3 Business Certification in connection with the retention or contracting of any Section 3 business concern and the Section 3 Resident Certification along with supporting documentation in connection with the interviewing, training or hiring of any Section 3 resident. All 5

supporting documentation shall be maintained and available for monitoring and compliance reviews. •

Shall, on a monthly basis, timely submit to the Contractor for submission to the MSPA, all required Section 3 Reporting Forms, including, but not necessarily limited to, the Section 3 Status Report Hiring/Subcontracting Activity form.

•

Shall report their employment opportunities to the Compliance or its designee. Subcontractors shall post all employment opportunities with the MS WIN Job Center and shall review the MS WIN Job Center job-seeker postings provided prior to filling any position for the Project.

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Shall perform such other Section 3 compliance activities as may be reasonably requested by the Port Authority.

Port Authority The Port Authority recognizes that the ultimate responsibility for compliance with the Port Authority’s Section 3 Plan rests with the Port Authority, including, but not limited to responsibility for any tasks which are performed by a designee of the Port Authority, the Compliance Officer or both. In recognition thereof, the Port Authority will: •

Establish and maintain the roles of the Compliance Officer, or its designee, who shall have primary responsibility for assuring that the Section 3 implementation procedures are consistently carried out.

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Incorporate the Section 3 Clause and Section 3 Forms in all solicitations and bidding documents.

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Require the submission of Section 3 Plans for review and approval by the Compliance Officer prior to the commitment by the Port Authority of any funding to Section 3 Covered Projects.

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Conduct meetings with Contractors to discuss the review of Section 3 Plans and Forms of the Contractors and their Subcontractors.

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Require approved Section 3 Plans and Forms to become a part of the set of contractual documents.

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Require Contractor’s and Subcontractor’s submission of a periodic Section 3 Reports for review prior to award for compliance.

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Regularly conduct compliance monitoring of all contracts which embody Section 3 plans. The Port Authority shall, no less than two (2) times per year, review with Contractors to perform a comprehensive analysis of compliance by each Contractor.

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Regularly conduct compliance monitoring of all supporting documentation for data submitted by Contractors and Subcontractors.

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Hold workshops, as necessary, on the Port Authority’s Section 3 Program.

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Prepare and submit reports to MDA and HUD (as set forth below) on the Section 3 Program results. All supporting documentation will be maintained by the Port Authority for compliance and monitoring reviews.

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The Compliance Officer or its designee will work with the Mississippi Department of Employment Security to provide the Contractors and Subcontractors with a list of qualified job seekers.

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Shall perform or establish any such other activities or policies which the Port Authority deems prudent or necessary in order to achieve the successful implementation the Port Authority’s Section 3 goals.

Hiring Policies for Achievement of MSPA Section 3 Hiring Goals The hiring policy as set forth herein is an essential component of any Section 3 Plan submitted to the Port Authority by Contractors and Subcontractors for approval. The Port Authority recognizes the importance of making sure that low- and very low- income residents residing in the Metropolitan Statistical Area benefit from any and all Section 3 Covered Projects built in their communities. As such, Contractors and Subcontractors are expected by the Port Authority to demonstrate in their Section 3 Plans and through their subsequent implementation of such plans that Section 3 eligible residents are included in the hiring goals and are indeed beneficiaries of the plans’ hiring policies and practices. The Port Authority, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training and employment opportunities generated from the expenditure of section 3 covered assistance to section 3 residents in the order of priority listed below. Priority consideration shall be given, where feasible, to: • •

Section 3 residents residing in the service area or neighborhood in which the section 3 covered project is located (collectively, referred to as category 1 residents). 2 Other section 3 residents.

The categories below, which are not applicable to the Section 3 covered activity referenced herein, shall be given higher priority, if and when applicable: •

Participants in HUD Youthbuild programs (category 2 residents).

•

Where the section 3 project is assisted under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et seq.), homeless persons residing in the service area or neighborhood in which the section 3 covered project is located shall be given the highest priority.

Through the incorporation of the Port Authority’s Section 3 Plan into its contracts, the Port Authority will expect Contractors and Subcontractors to: • • • • •

• • •

Conduct aggressive employment outreach to a number of community based agencies for new hires; Accept and give preferential employment consideration to referred Section 3 eligible residents; Provide appropriate employment outreach signage, flyers and advertisements in order to target and inform low- and very low- income residents of employment opportunities; Cooperate with the Compliance Officer or its designee to undertake, to the greatest extent feasible, such efforts as they may deem necessary to achieve the Port Authority’s Section 3 goals; Prior to beginning work, inform Section 3 participants of the development at which the work will be performed, by providing the following: • Names of the Section 3 business concerns to be utilized • Estimates of the number of employees to be utilized for contract • Projected number of available positions, to include job descriptions and wage rates (construction wages consistent with Davis Bacon). • Efforts that will be utilized to seek Section 3 participants; Notify the Compliance Officer or its designee of any employment opportunities prior to hiring for such opportunities; Immediately notify the Compliance Officer or its designee of any problems experienced due to the employment of Section 3 participants; and Immediately notify the Compliance Officer or its designee if a participant quits, walks off, or is terminated for any reason. The contractor or subcontractor must provide written documentation of all such incidents to support such decisions to the Compliance Officer or its designee to determine if an investigation is warranted.

Certification of Section 3 Eligible Residents Low- and very low- income persons who reside in the Gulfport/Biloxi Metropolitan Statistical Area may seek certification as “Section 3 eligible.” In order to seek Section 3 eligibility status, any individual may complete a Section 3 Resident Certification form and submit such form (including adequate proof of Section 3 eligibility, e.g. a copy of a lease with a housing authority, pay stub or income tax return) to Contractors and Subcontractors or to Program Participants through the Pathways Program. The Compliance Officer is tasked with the responsibility of maintaining a current and accurate list of certified Section 3 eligible residents, and making referrals of certified Section 3 eligible residents to job and training opportunities. •

All persons determined by the Compliance Officer to be Section 3 eligible can, by appointment, visit with the Compliance Officer or its designee to complete a job readiness assessment as established by HUD.

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Once this assessment is complete, the Compliance Officer or its designee will determine if the individual meets the eligibility requirements and is job ready. 8

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If the individual is deemed eligible for Section 3 participation and deemed not ready for employment, a referral will be made to other agencies that are better equipped to address the individual’s needs, i.e., substance abuse providers, etc.

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The Section 3 job readiness component is a part of the MSPA commitment to provide economic opportunities and training to residents/eligible participants to become gainfully employed.

MSPA Preference for Contracting with Section 3 Business Concerns The Mississippi State Port Authority is committed to and recognizes the importance of ensuring that Section 3 Eligible business concerns derive economic benefit from any and all MSPA Section 3 Projects in their communities. Likewise, contractors and subcontractors are required by the MSPA to demonstrate in their Section 3 plans and their subsequent implementation actions that Section 3 certified business concerns are included in the contracting goals and are indeed economic beneficiaries of the plan’s business and procurement policies and practices. The Mississippi State Port Authority’s Section 3 policy requires Section 3 business concerns to be given priority in contracting for work: 3 Business concerns that are 51% or more owned by a Section 3 resident(s), or whose permanent, full-time workforce includes no less than 30% Section 3 residents or that subcontract in excess of 25% of the total amount of subcontracts to Section 3 business concerns. Certification of Section 3 Business Concerns All businesses conducting work with the Restoration Project shall complete the Section 3 Business Concern Certification form (substantially in the form set forth in Appendix E), which can be obtained from the Compliance Officer. Any business seeking Section 3 certification must be able to provide adequate documentation as evidence of eligibility for preference under the Section 3 program. The Compliance Officer will review such form and supporting documentation and make a determination as to whether to qualify the business as a Section 3 business concern. The Compliance Officer or its designee will maintain a current database capable of generating accurate listings of certified Section 3 business concerns and will make available listings of such concerns to any contractor or subcontractor interested in work pertaining to the Port Authority’s Section 3 Covered Projects. Information from this database and all documentation submitted by 3

The categories below, which are not applicable to the Section 3 covered activity referenced herein, shall be given higher priority, if and when applicable: •

Business concerns that are 51% or more owned by residents of the housing development for which the work is performed, or whose full-time, permanent workforce includes 30% of these persons as employees.

•

Business concerns that are 51% or more owned by residents of the Authority’s public housing development(s) other than the housing development where the work is to be performed; or whose full-time permanent workforce includes 30% of these persons as employees.

any business will also be available to the Compliance Officer who will be engaged in ongoing monitoring of Section 3 implementation and compliance. Efforts to Award Contract Opportunities to Section 3 Business Concerns Through the implementation of the Port Authority’s Section 3 Plan through its contracts, the Port Authority will expect Contractors and Subcontractors to: •

Advertise contracting opportunities via selected referral sources identified in the form such as newspaper, plan rooms, posting notices that provide general information about the work to be contracted and where to obtain additional information.

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Provide written notice of contracting opportunities available to all known Section 3 business concerns. The written notice will be provided in sufficient time to enable business concerns the opportunity to respond to the bid invitation.

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Coordinate pre-bid meetings at which Section 3 business concerns would be informed of upcoming contracting opportunities in advance.

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Conduct workshops on MSPA contracting procedures to include bonding, insurance, and other pertinent requirements, in a timely manner in an effort to allow Section 3 business concerns the opportunity to take advantage of any upcoming contracting opportunities.

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Contact business assistance agencies and Minority and Women Businesses’ contractor associations and community organizations to inform them of contracting opportunities and to request their assistance in identifying Section 3 businesses.

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During procurement of a project, a Section 3 Business Concern will be given a preference in an award pursuant to 24 CFR Part 135 Appendix, III.

C. Annual Reports. The Port Authority will submit the annual Section 3 report to MDA for submission to HUD each year. All annual reports shall be submitted on HUD Form 60002, or other form as designated by HUD. In support of each of the foregoing reports and to document compliance with the Section 3 Plan objectives, the Port Authority will receive and maintain records which, at a minimum, will include specific information and documentation to demonstrate whether the numerical goals were met and that the Port Authority and its Contracts and their Subcontractors carried out their responsibilities in accordance with their obligations. The Compliance Officer shall review and confirm the information and documentation provided to monitor and enforce compliance with this Section 3 Plan. Section 3 Complaint Procedures D. HUD Complaint Process 4. Any Section 3 resident or business concern may file a complaint alleging noncompliance with Section 3 by a recipient, contractor or subcontractor. Complaints must be submitted to HUD within 180 days of the action or omission upon which the complaint is based. Complaints are to be filed in writing 5 to: Atlanta Regional Office United States Department of Housing and Urban Development Southeast Office 40 Marietta Street Atlanta, GA 30303 Email: [email protected]

The written complaint must be signed by the complainant and must contain: •

The complainant’s name and address;

•

The name and address of the respondent of the complaint;

•

A description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance.

E. Port Authority Informal Complaint Process. Any Section 3 resident or business concern may file an informal complaint alleging noncompliance with Section 3 by a recipient, contractor or subcontractor. Informal complaints will be investigated by the Compliance Officer. Filing an informal complaint with the Port Authority will not satisfy the complaint requirements established by HUD. Informal complaints are to be filed in writing to:

HUD Complaint Registry: http://portal.hud.gov/hudportal/documents/huddoc?id=958.pdf A complainant my provide information to be contained in a written complaint by telephone to HUD or any HUD Field Office, and HUD will reduce the information provided by telephone to writing on the prescribed complaint form and send the form to the complainant for signature.

Compliance Officer Mississippi State Port Authority at Gulfport 2510 14th Street, Suite 880 Gulfport, MS 39501 The written complaint must be signed by the complainant and must contain: •

The complainant’s name and address;

•

The name and address of the respondent of the complaint;

•

A description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance.

Upon receipt of such complaint, the Compliance Officer will designate the appropriate person(s) to investigate the specific allegations of the complaint and render a finding. If it is determined that a violation of the Port Authority’s Section 3 Plan or a breach of the contractual obligations owed to the Port Authority by any contractor (including breaches committed by any such contractor’s subcontractor), the Compliance Officer shall notify the Port Authority of such findings and of the recommended corrective measures. The Port Authority will utilize its best efforts to provide the results of its findings to the complainant within thirty (30) days after the filing of the informal written complaint.

Section 3 Definitions 6 Applicant means any entity which makes an application for section 3 covered assistance, and includes, but is not limited to, any State, unit of local government, public housing agency, Indian housing authority, Indian tribe, or other public body, public or private nonprofit organization, private agency or institution, mortgagor, developer, limited dividend sponsor, builder, property manager, community housing development organization, resident management corporation, resident council, or cooperative association. Assistant Secretary means the Assistant Secretary for Fair Housing and Equal Opportunity. Business concern means a business entity formed in accordance with State law, and which is licensed under State, county or municipal law to engage in the type of business activity for which it was formed. Business concern that provides economic opportunities for low- and very low-income persons. See definition of ‘‘section 3 business concern’’ in this section. Contract. See the definition of ‘‘section 3 covered contract’’ in this section. Contractor means any entity which contracts to perform work generated by the expenditure of section 3 covered assistance, or for work in connection with a section 3 covered project. Employment opportunities generated by section 3 covered assistance means all employment opportunities generated by the expenditure of section 3 covered public and Indian housing assistance (i.e., operating assistance, development assistance and modernization assistance, as described in § 135.3(a)(1 . With respect to section 3 covered housing and community development assistance, this term means all employment opportunities arising in connection with section 3 covered projects (as described in § 135.3(a)(2 , including management and administrative jobs connected with the section 3 covered project. Management and administrative jobs include architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to administrative support of these activities, e.g., construction manager, relocation specialist, payroll clerk, etc. Housing authority means, collectively, public housing agency and Indian housing authority. Housing and community development assistance means any financial assistance provided or otherwise made available through a HUD housing or community development program through any grant, loan, loan guarantee, cooperative agreement, or contract, and includes community development funds in the form of community development block grants, and loans guaranteed under section 108 of the Housing and Community Development Act of 1974, as

24 C.F.R.135.5 (as applicable to this Section 3 Plan).

amended. Housing and community development assistance does not include financial assistance provided through a contract of insurance or guaranty. Housing development means low-income housing owned, developed, or operated by public housing agencies or Indian housing authorities in accordance with HUD’s public and Indian housing program regulations codified in 24 CFR Chapter IX. HUD Youthbuild programs mean programs that receive assistance under subtitle D of Title IV of the National Affordable Housing Act, as amended by the Housing and Community Development Act of 1992 (42 U.S.C. 12899), and provide disadvantaged youth with opportunities for employment, education, leadership development, and training in the construction or rehabilitation of housing for homeless individuals and members of low- and very low-income families. Low-income person. See the definition of ‘‘section 3 resident’’ in this section. Metropolitan area means a metropolitan statistical area (MSA), as established by the Office of Management and Budget. New hires mean full-time employees for permanent, temporary or seasonal employment opportunities. Public housing resident has the meaning given this term in 24 CFR part 963. Recipient means any entity which receives section 3 covered assistance, directly from HUD or from another recipient and includes, but is not limited to, any State, unit of local government, PHA, IHA, Indian tribe, or other public body, public or private nonprofit organization, private agency or institution, mortgagor, developer, limited dividend sponsor, builder, property manager, community housing development organization, resident management corporation, resident council, or cooperative association. Recipient also includes any successor, assignee or transferee of any such entity, but does not include any ultimate beneficiary under the HUD program to which section 3 applies and does not include contractors. Section 3 means section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u). Section 3 business concern means a business concern, as defined in this section— (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 (3) 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 paragraphs (1) or (2) in this definition of ‘‘section 3 business concern.’’ Section 3 clause means the contract provisions set forth in § 135.38. Section 3 covered activity means any activity which is funded by section 3 covered assistance public and Indian housing assistance.

Section 3 covered assistance means: (1) Public and Indian housing development assistance provided pursuant to section 5 of the 1937 Act; (2) Public and Indian housing operating assistance provided pursuant to section 9 of the 1937 Act; (3) Public and Indian housing modernization assistance provided pursuant to section 14 of the 1937 Act; (4) Assistance provided under any HUD housing or community development program that is expended for work arising in connection with: (i) Housing rehabilitation (including reduction and abatement of lead-based paint hazards, but excluding routine maintenance, repair and replacement); (ii) Housing construction; or (iii) Other public construction project (which includes other buildings or improvements, regardless of ownership). Section 3 covered contract means a contract or subcontract (including a professional service contract) awarded by a recipient or contractor for work generated by the expenditure of section 3 covered assistance, or for work arising in connection with a section 3 covered project. ‘‘Section 3 covered contracts’’ do not include contracts awarded under HUD’s procurement program, which are governed by the Federal Acquisition Regulation System (see 48 CFR, Chapter 1). ‘‘Section 3 covered contracts’’ also do not include contracts for the purchase of supplies and materials. However, whenever a contract for materials includes the installation of the materials, the contract constitutes a section 3 covered contract. For example, a contract for the purchase and installation of a furnace would be a section 3 covered contract because the contract is for work (i.e., the installation of the furnace) and thus is covered by section 3. Section 3 covered project means the construction, reconstruction, conversion or rehabilitation of housing (including reduction and abatement of lead-based paint hazards), other public construction which includes buildings or improvements (regardless of ownership) assisted with housing or community development assistance. Section 3 resident means: (1) A public housing resident; or (2) An individual who resides in the metropolitan area or nonmetropolitan county in which the section 3 covered assistance is expended, and who is: (i) A low-income person, as this term is defined in section 3(b)(2) of the 1937 Act (42 U.S.C. 1437a(b)(2 . Section 3(b)(2) of the 1937 Act defines this term to mean families (including single persons) whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary, with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low-income families; or (ii) A very low-income person, as this term is defined in section 3(b)(2) of the 1937 Act (42 U.S.C. 1437a(b)(2 . Section 3(b)(2) of the 1937 Act (42 U.S.C. 1437a(b)(2 defines this term to mean families (including single persons) whose incomes do not exceed 50 per centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 50 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes. (3) A person seeking the training and employment preference provided by section 3 bears the responsibility of providing evidence (if requested) that the person is eligible for the preference. Section 8 assistance means assistance provided under section 8 of the 1937 Act (42 U.S.C. 1437f) pursuant to 24 CFR part 882, subpart G. 15

Service area means the geographical area in which the persons benefitting from the section 3 covered project reside. The service area shall not extend beyond the unit of general local government in which the section 3 covered assistance is expended. In HUD’s Indian housing programs, the service area, for IHAs established by an Indian tribe as a result of the exercise of the tribe’s sovereign power, is limited to the area of tribal jurisdiction. Subcontractor means any entity (other than a person who is an employee of the contractor) which has a contract with a contractor to undertake a portion of the contractor’s obligation for the performance of work generated by the expenditure of section 3 covered assistance, or arising in connection with a section 3 covered project. Very low-income person. See the definition of ‘‘section 3 resident’’ in this section. Youthbuild programs. See the definition of ‘‘HUD Youthbuild programs’’ in this section.

HUD HIRING CATEGORIES PROFESSIONALS. Occupations requiring either college graduation or experience of such kind and amount as to provide a comparable background. Includes: accountants and auditors, airplane pilots and navigators, architects, artists, chemists, designers, dieticians, editors, engineers, lawyers, librarians, mathematicians, natural scientists, registered professional nurses, personnel and labor relations specialists, physical scientists, physicians, social scientists, teachers, surveyors and kindred workers. TECHNICIANS. Occupations requiring a combination of basic scientific knowledge and manual skill which can be obtained through 2 years of post-high school education, such as is offered in many technical institutes and junior colleges, or through equivalent on-the-job training. Includes: computer programmers, drafters, engineering aides, junior engineers, mathematical aides, licensed, practical or vocational nurses, photographers, radio operators, scientific assistants, technical illustrators, technicians (medical, dental, electronic, physical science), and kindred workers. OFFICE AND CLERICAL. Includes all clerical-type work regardless of level of difficulty, where the activities are predominantly non manual though some manual work not directly involved with altering or transporting the products is included. Includes: bookkeepers, collectors (bills and accounts), messengers and office helpers, office machine operators (including computer), shipping and receiving clerks, stenographers, typists and secretaries, telegraph and telephone operators, legal assistants, and kindred workers. OFFICIALS AND MANAGERS. Occupations requiring administrative and managerial personnel who set broad policies, exercise overall responsibility for execution of these policies, and direct individual departments or special phases of a firm's operations. Includes: officials, executives, middle management, plant managers, department managers, and superintendents, salaried supervisors who are members of management, purchasing agents and buyers, railroad conductors and yard masters, ship captains, mates and other officers, farm operators and managers, and kindred workers. SALES. Occupations engaging wholly or primarily in direct selling. Includes: advertising agents and sales workers, insurance agents and brokers, real estate agents and brokers, stock and bond sales workers, demonstrators, sales workers and sales clerks, grocery clerks, and cashiers/checkers, and kindred workers. CRAFT WORKERS (SKILLED). Manual workers of relatively high skill level having a thorough and comprehensive knowledge of the processes involved in their work. Exercise considerable independent judgment and usually receive an extensive period of training. Includes: the building trades, hourly paid supervisors and lead operators who are not members of management, mechanics and repairers, skilled machining occupations, compositors and typesetters, electricians, engravers, painters (construction and maintenance), motion picture projectionists, pattern and model makers, stationary engineers, tailors and tailoresses, arts occupations, hand painters, coaters, bakers, decorating occupations, and kindred workers. 17

OPERATIVES (SEMISKILLED). Workers who operate machine or processing equipment or perform other factory-type duties of intermediate skill level which can be mastered in a few weeks and require only limited training. Includes: apprentices (auto mechanics, plumbers, bricklayers, carpenters, electricians, machinists, mechanics, building trades, metalworking trades, printing trades, etc.), operatives, attendants (auto service and parking), blasters, chauffers, delivery workers, sewers and stitchers, dryers, furnace workers, heaters, laundry and dry cleaning operatives, milleners, mine operatives and laborers, motor operators, oilers and greasers (except auto), painters (manufactured articles), photographic process workers, truck and tractor drivers, knitting, looping, taping and weaving machine operators, welders and flamecutters, electrical and electronic equipment assemblers, butchers and meatcutters, inspectors, testers and graders, hand packers and packagers, and kindred workers. LABORERS (UNSKILLED). Workers in manual occupations which generally require no special training who perform elementary duties that may be learned in a few days and require the application of little or no independent judgment. Includes: garage laborers, car washers and greasers, groundskeepers and gardeners, farmworkers, stevedores, wood choppers, laborers performing lifting, digging, mixing, loading and pulling operations, and kindred workers. SERVICE WORKERS. Workers in both protective and non-protective service occupations. Includes: attendants (hospital and other institutions, professional and personal service, including nurses aides, and orderlies), barbers, chair workers and cleaners, cooks, counter and fountain workers, elevator keepers, stewards, janitors, police officers and detectives, porters, waiters and waitresses, amusement and recreation facilities attendants, guides, ushers, public transportation attendants, and kindred workers.

APPENDIX A SECTION 3 CLAUSE All section 3 covered contracts shall include the following clause (referred to as the section 3 clause): A. The work to be performed under this contract 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). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135. F. Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires A-1

that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).

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§ 135.38 - SECTION 3 CLAUSE All section 3 covered contracts shall include the following clause (referred to as the section 3 clause): A. The work to be performed under this contract 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). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135. F. Noncompliance with HUD’s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. Exhibit “2”

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G. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).

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APPENDIX C

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APPENDIX D

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APPENDIX E

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APPENDIX F

SECTION 3 RESIDENT CERTIFICATION - 2013 Eligibility for Preference Instructions: 1. A section 3 resident seeking preference in training and employment must certify, or submit evidence to the recipient contractor or subcontractor, if requested, that the person is a Section 3 resident, as defined in Section 135.5 of 24 CFR. 2. To indicate your eligibility for preference, complete this form and submit it to the contractor or subcontractor that has advertised the position you are seeking. Submitted to:

(“Contractor”) (“Subcontractor”).

am a legal resident of

My permanent address is:

Number in Household: Total current gross household income: I am a Section 3 resident because (must check one): I am a resident of public housing, OR I meet the income eligibility guidelines below (circle applicable income limit). I have attached the following documentation as evidence of my status (provide at least one): Copy of lease in a Federally assisted program

Copy of receipt of public assistance

Copy of evidence of participation in public assistance program that assists low or very low income persons

Other evidence:

Copy of income tax return SECTION 3 INCOME LIMITS All residents of public housing developments qualify as Section 3 residents. Additionally, individuals residing in the Gulfport‐Biloxi metro area who meet the income limits set forth below can also qualify for Section 3 status. Number in Annual Household Income Household Less Than 1 $30,650 2 $35,000 3 $39,400 4 $43,750 5 $47,250 6 $50,750 7 $54,250 8 $57,750 Revised with 2013 Income Limits I certify that my answers are true and complete to the best of my knowledge. If my application leads to employment, I understand that false or misleading information in this certification or other information provided to contractor or subcontractor may result in my termination. The undersigned acknowledges that Contractor and the Mississippi State Port Authority will rely on the accuracy of the information contained herein and, therefore, any person who misrepresents its status may be subject to criminal and administrative remedies.

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APPENDIX I

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Part 309. Mississippi State Port Authority’s Section 3 Plan Port Restoration

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Section 3 Plan Port Restoration

Introduction and General Policy Statement The Mississippi State Port Authority (sometimes referred to herein as the “MSPA” or the “Port Authority”) continues to rebuild the Port at Gulfport which was nearly completely destroyed by Hurricane Katrina on August 29, 2005. In response to the devastation, Congress allocated federal aid through a U.S. Housing and Urban Development Community Development Block Grant to reestablish a sustainable port. The federal aid purposes are supported by the policies of the Mississippi State Port Authority and described in this Section 3 Plan. This Section 3 Plan outlines and describes the Mississippi State Port Authority’s policies for notifying Section 3 residents and business concerns about employment, training and contracting opportunities and the Port Authority’s, including its Contractors and Subcontractors, obligations concerning outreach, recordkeeping, monitoring and enforcement activities to ensure the Port Authority is, to the greatest extent feasible, directing employment and contracting opportunities to Section 3 residents and business concerns. Section 3 Purpose Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u) and implementing regulations at 24 C.F.R.135 (Section 3) requires recipients and subrecipients such as the Mississippi State Port Authority to ensure that employment and other economic and business opportunities generated by the Department of Housing and Urban Development (HUD) financial assistance shall, to the greatest extent feasible, consistent with existing Federal, State and local laws and regulations, are directed to low- and very low- income persons, particularly recipients of government housing assistance, and business concerns that provide economic opportunities to low- and very low-income persons. The Mississippi State Port Authority fully embraces the spirit and intent of Section 3 and has set forth policies and procedures in accordance therewith. Such policies are applicable to contractors, subcontractors and others engaged in projects funded through the Mississippi State Port Authority with funds sourced from HUD. In implementation of these policies and in order to assist in the achievement of the primary objective of connecting low- and very low-income persons with economic opportunities associated with the Port Authority’s Section 3 Covered Projects, the Port Authority has created a full-time, dedicated staff position for a Compliance Manager Officer tasked with monitoring and enforcement of the Port Authority’s Section 3 policies, and employs a Workforce Development Coordinator tasked with overall responsibility for implementation of the Port Authority’s Section 3 Plan. MSPA Section 3 Outreach & Training Activities To further facilitate the Port Authority’s commitment to the achievement of the numerical goals for itself and its Contractors and Subcontractors, the Port Authority supports broad outreach, education and training relative to Section 3. The cornerstone of the Port Authority’s outreach and training effort is the establishment of the Pathways to the Port Program. 1

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Pathways Program will require all the Program Participants to submit job postings through WINGS for all newly created or replacement positions. The WIN Job Center will provide a list of qualified job seekers with preference to lowand very low- income persons. MDES will provide the Program participant with the list of qualified job seekers from the WIN Job Center. The Pathways to the Port participant will then interview the candidates qualified for the open position and may choose to hire from the list provided if possible. Once the program participant has made a hiring decision regarding the position, the participant shall inform MDES of its decision. When a candidate is chosen from the list or another source, the Program participant will complete the Job Applicant Survey Form (substantially in the form set forth in Appendix I) and submit it to the Workforce Development Coordinator Compliance Officer or its designee for recordkeeping and reporting. .

The Pathways Program will be a focused and accountable model initiative. Applicants will be tracked in the State’s performance management system to measure and report on hiring and other outcomes. Program Outreach: MSPA jobs outreach program in order to quantifies quantify the direct and indirect jobs of contractors and subcontractors resulting from the Port Authority’s Section 3 Covered Projects and to make them available to all sections of the community, including low- to very low- income residents. The entire community in the vicinity of the Port at Gulfport will be targeted. The community shall consist of the MSA. 1 However, particular attention will be paid to low- and very lowincome persons. The outreach campaign will include purchasing authorities, community-based

http://www.mississippi.org/assets/docs/maps/msas.pdf

organizations, WIN Job Centers, libraries, and media resources (e.g., The Sun Herald, WLOX, posting and distributing flyers, a website). Workforce Training The State of Mississippi has successfully developed a workforce training system utilizing the resources of the State’s network of community colleges, senior colleges, State and local economic development agencies, and related business entities. This system has successfully provided hundreds of citizens, many of whom are low- and very low income- persons, with the job training and related education to find employment with the major manufacturing industries and businesses of the State, including Nissan and Toyota. This system has been nationally recognized for its innovation and abilities to provide a highly skilled workforce for these industries. The Pathways Program will partner this approach with existing state workforce system, to plan, implement and oversee training, recruitment, and hiring needs for the Port and the Program Participants. The Pathways Program will identify the fundamental/core skills needed in order to equip unskilled and under-skilled workers to fill entry-level demand jobs. The Pathways Program will work with businesses, community colleges, and other training providers as necessary to meet job training needs. Training will be easily accessible, flexible and will be provided at very low or no cost to eligible applicants. Three key training providers have been identified: (1) the Mississippi Gulf Coast Community College, which has three campuses and has offered the use of its West Harrison Center located in Harrison County to be used exclusively for the Pathways Program training; (2) Pearl River Community College, which has campuses in Hancock and Pearl River County; and (3) the Ship Building Academy located in Jackson County. Existing curriculum will be customized to meet training needs. Training will lead to portable industry recognized credentials. Existing training includes, logistics, diesel equipment and office system technologies; heavy equipment operations; construction skills; OSHA; crane simulation; commercial truck driving and career readiness certificates. The Workforce Development Coordinator Compliance Officer will also evaluate Section 3 eligibility based on the data submitted by contractors. The Compliance Manager Officer shall review and have oversight over all certifications. Assuring Compliance with Section 3 Policies Applicants will be tracked in the State’s performance management system to measure and report on hiring and other outcomes. The Section 3 Clause (see Appendix A) and implementation of all Section 3 Reporting Forms (as referenced in the Table of Contents above) become part of the contractual documents between the Port Authority and any Contractor and their Subcontractors. Further, the Port Authority shall require the Section 3 Clause and the implementation of the Section 3 Reporting Forms to be incorporated into any contract between a Contractor and Subcontractor. The Compliance Manager Officer is available to provide technical assistance to Contractors, 3

Subcontractors, and others during the course of the Section 3 Covered Project. The Compliance Manager Officer will routinely monitor each party’s continued compliance with the reporting requirements specified in the Section 3 Reporting Forms, any party’s failure to properly satisfy such requirements can be construed by the Port Authority as a breach of such party’s contract and may further result in the Port Authority’s termination of such contract and debarment or suspension of such party from future Port Authority HUD-assisted contracts. The Workforce Development Coordinator will be responsible for the implementation of the MSPA’s Section 3 Plan, the successful accomplishment the Pathways to the Port Program (as described below) goals and the National Objective to make available 51% of the jobs created to low- and very low- income persons. The Workforce Development Coordinator will: • • • • • •

Develop training inventory and plan, Interview employers associated with the Port Authority to determine what jobs, special skills and training are needed, Maintain Port Authority partner coordination with the Mississippi Department of Employment Security to establish the low- and very low- income persons referral, tracking, and reporting processes, Gather information on employment opportunities from contractor and subcontractors, and communicate all job opportunities throughout the Section 3 community, Provide oversight of the Pathways Program; and Perform such other activities as may be requested by the Compliance Manager.

MSPA Section 3 Employment & Contracting Goals The MSPA has set minimum numerical goals for the Project to ensure that, to the greatest extent feasible, economic opportunities are provided to Section 3 residents and Section 3 business concerns. The Port Authority’s current minimum Section 3 goals are as follows: • •

The goals established by this section apply to the entire amount of Section 3 covered assistance under the Project. The Port Authority will further ensure that, to the greatest extent feasible, its Contractors and/or Subcontractors provide training, employment and contracting opportunities to Section 3 residents and Section 3 business concerns. The Workforce Development Coordinator Compliance Officer will be responsible for reviewing the new hire clause with Contractors and Subcontractors to ensure that the requirement is understood. It is not intended for contractors and subcontractors to terminate existing employees, but to make every effort feasible to employ Section 3 program participants before any other person, when hiring additional employees needed to complete proposed work to be performed with HUD funds. Contractors: 4

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Shall incorporate the Section 3 Clause (Appendix A) in their contracts and subcontracts.

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Shall, if applicable, demonstrate and document to the satisfaction of the Compliance Manager Officer why meeting the Section 3 numerical goals was not feasible for Contractor or its Subcontractor(s).

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Shall report their employment opportunities to the Workforce Development Coordinator for posting Compliance Officer or its designee. Contractors shall post all employment opportunities with the MS WIN Job Center and shall review the MS WIN Job Center job-seeker postings provided by the MSPA or the Workforce Development Coordinator prior to filling any position for the Project.

•

Shall perform such other Section 3 compliance activities as may be reasonably requested by the Port Authority. 5

Subcontractors •

Shall incorporate the Section 3 Clause in their contracts and subcontracts.

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Shall report their employment opportunities to the Workforce Development Coordinator for posting Compliance or its designee. Subcontractors shall post all employment opportunities with the MS WIN Job Center and shall review the MS WIN Job Center job-seeker postings provided by the MSPA or the Workforce Development Coordinator prior to filling any position for the Project.

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Shall perform such other Section 3 compliance activities as may be reasonably requested by the Port Authority.

Establish and maintain the roles of the Workforce Development Coordinator and Compliance Manager with Officer, or its designee, who shall have primary responsibility for assuring that the Section 3 implementation procedures are consistently carried out. 6

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Incorporate the Section 3 Clause and Section 3 Forms in all solicitations and bidding documents.

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Require the submission of Section 3 Plans for review and approval by the Compliance Manager Officer prior to the commitment by the Port Authority of any funding to Section 3 Covered Projects.

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Conduct meetings with Contractors to discuss the review of Section 3 Plans and Forms of the Contractors and their Subcontractors.

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Require approved Section 3 Plans and Forms to become a part of the set of contractual documents.

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Require Contractor’s and Subcontractor’s submission of a periodic Section 3 Reports for review prior to award for compliance.

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Regularly conduct compliance monitoring of all supporting documentation for data submitted by Contractors and Subcontractors.

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Hold workshops, as necessary, on the Port Authority’s Section 3 Program.

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The Workforce Development Coordinator will Compliance Officer or its designee will work with the Mississippi Department of Employment Security to provide the Contractors and Subcontractors with a list of qualified job seekers.

•

plans that Section 3 eligible residents are included in the hiring goals and are indeed beneficiaries of the plans’ hiring policies and practices. The Port Authority, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training and employment opportunities generated from the expenditure of section 3 covered assistance to section 3 residents in the order of priority listed below. Priority consideration shall be given, where feasible, to: • •

Section 3 residents residing in the service area or neighborhood in which the section 3 covered project is located (collectively, referred to as category 1 residents). 2 Other section 3 residents.

Through the incorporation of the Port Authority’s Section 3 Plan into its contracts, the Port Authority will expect Contractors and Subcontractors to: • • • • •

• •

•

Conduct aggressive employment outreach to a number of community based agencies for new hires; Accept and give preferential employment consideration to referred Section 3 eligible residents; Provide appropriate employment outreach signage, flyers and advertisements in order to target and inform low- and very low- income residents of employment opportunities; Cooperate with the Workforce Development Coordinator and Compliance Manager Officer or its designee to undertake, to the greatest extent feasible, such efforts as they may deem necessary to achieve the Port Authority’s Section 3 goals; Prior to beginning work, inform Section 3 participants of the development at which the work will be performed, by providing the following: • Names of the Section 3 business concerns to be utilized • Estimates of the number of employees to be utilized for contract • Projected number of available positions, to include job descriptions and wage rates (construction wages consistent with Davis Bacon). • Efforts that will be utilized to seek Section 3 participants; Notify the Workforce Development Coordinator Compliance Officer or its designee of any employment opportunities prior to hiring for such opportunities; Immediately notify the Workforce Development Coordinator Compliance Officer or its designee of any problems experienced due to the employment of Section 3 participants; and Immediately notify the Workforce Development Coordinator Compliance Officer or its designee if a participant quits, walks off, or is terminated for any reason. The contractor

The categories below, which are not applicable to the Section 3 covered activity referenced herein, shall be given higher priority, if and when applicable: •

Participants in HUD Youthbuild programs (category 2 residents).

•

or subcontractor must provide written documentation of all such incidents to support such decisions to the Compliance Officer or its designee to determine if an investigation is warranted. Certification of Section 3 Eligible Residents Low- and very low- income persons who reside in the Gulfport/Biloxi Metropolitan Statistical Area may seek certification as “Section 3 eligible.” In order to seek Section 3 eligibility status, any individual may complete a Section 3 Resident Certification form and submit such form (including adequate proof of Section 3 eligibility, e.g. a copy of a lease with a housing authority, pay stub or income tax return) to Contractors and Subcontractors or to Program Participants through the Pathways Program. The Workforce Development Coordinator Compliance Officer is tasked with the responsibility of maintaining a current and accurate list of certified Section 3 eligible residents, and making referrals of certified Section 3 eligible residents to job and training opportunities. •

All persons determined by the Workforce Development Coordinator Compliance Officer to be Section 3 eligible can, by appointment, visit with the Workforce Development Coordinator Compliance Officer or its designee to complete a job readiness assessment as established by HUD.

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Once this assessment is complete, the Compliance Officer or its designee will determine if the individual meets the eligibility requirements and is job ready.

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The Section 3 job readiness component is a part of the MSPA commitment to provide economic opportunities and training to residents/eligible participants to become gainfully employed.

The categories below, which are not applicable to the Section 3 covered activity referenced herein, shall be given higher priority, if and when applicable: •

Business concerns that are 51% or of more owned by residents of the housing development for which the work is performed, or whose full-time, permanent workforce includes 30% of these persons as employees.

Business concerns that are 51% or more owned by a Section 3 resident(s), or whose permanent, full-time workforce includes no less than 30% Section 3 residents or that subcontract in excess of 25% of the total amount of subcontracts to Section 3 business concerns. Certification of Section 3 Business Concerns All businesses conducting work with the Restoration Project shall complete the Section 3 Business Concern Certification form (substantially in the form set forth in Appendix E), which can be obtained from the Workforce Development Coordinator Compliance Officer. Any business seeking Section 3 certification must be able to provide adequate documentation as evidence of eligibility for preference under the Section 3 program. The Workforce Development Coordinator Compliance Officer will review such form and supporting documentation and make a determination as to whether to qualify the business as a Section 3 business concern. The Workforce Development Coordinator Compliance Officer or its designee will maintain a current database capable of generating accurate listings of certified Section 3 business concerns and will make available listings of such concerns to any contractor or subcontractor interested in work pertaining to the Port Authority’s Section 3 Covered Projects. Information from this database and all documentation submitted by any business will also be available to the Manager Compliance Officer who will be engaged in ongoing monitoring of Section 3 implementation and compliance. Efforts to Award Contract Opportunities to Section 3 Business Concerns Through the implementation of the Port Authority’s Section 3 Plan through its contracts, the Port Authority will expect Contractors and Subcontractors to: •

•

Coordinate pre-bid meetings at which Section 3 business concerns would be informed of upcoming contracting opportunities in advance.

•

Business concerns that are 51% or of more owned by residents of the Authority’s public housing development(s) other than the housing development where the work is to be performed; or whose full-time permanent workforce includes 30% of these persons as employees.

•

During procurement of a project, a Section 3 Business Concern will be given a preference in an award pursuant to 24 CFR Part 135 Appendix, III.

Documenting Section 3 Efforts A. Monthly Reports. Section 3 monthly reports are required from all Contractors and Subcontractors of the Port Authority. Reports shall be due upon and submitted in conjunction with the monthly invoice from such Contractor (Contractors shall ensure that the monthly report(s) from its Subcontractor(s) are included in such submission) or due on such other date as reasonably requested by the Compliance Officer. B. Quarterly Reports. The Port Authority shall prepare quarterly reports detailing (i) all hiring, contracting and subcontracting activities and (ii) Pathways Program participant jobs data, including an executive summary of Pathways Program activities (including, but not necessarily limited to, the number of program participants, explanation of changes in participation, outreach activities and workforce training status) for the quarter. These quarterly reports shall be submitted separately to The Mississippi Development Authority, Post Office Box 849, Jackson, MS 39205. C. Annual Reports. The Port Authority will submit the annual Section 3 report to MDA for submission to HUD each year. All annual reports shall be submitted on HUD Form 60002, or other form as designated by HUD. In support of each of the foregoing reports and to document compliance with the Section 3 Plan objectives, the Port Authority will receive and maintain records which, at a minimum, will include specific information and documentation to demonstrate whether the numerical goals were met and that the Port Authority and its Contracts and their Subcontractors carried out their responsibilities in accordance with their obligations. The Manager Compliance Officer shall review and confirm the information and documentation provided to monitor and enforce compliance with this Section 3 Plan. Section 3 Complaint Procedures D. HUD Complaint Process 4. Any Section 3 resident or business concern may file a complaint alleging noncompliance with Section 3 by a recipient, contractor or subcontractor. Complaints must be submitted to HUD within 180 days of the action or omission upon which the complaint is based. Complaints are to be filed in writing 5 to: 4

Assistant Secretary for Fair Housing and Equal Opportunity Atlanta Regional Office United States Department of Housing and Urban Development Southeast Office 451 Seventh 40 Marietta Street, SW Washington, DC 20410 Atlanta, GA 30303 Email: [email protected]

The written complaint must be signed by the complainant and must contain: •

The complainant’s name and address;

•

The name and address of the respondent of the complaint;

•

A description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance.

Any Section 3 resident or business concern E. Port Authority Informal Complaint Process. may file an informal complaint alleging noncompliance with Section 3 by a recipient, contractor or subcontractor. Informal complaints will be investigated by the Compliance Manager Officer. Filing an informal complaint with the Port Authority will not satisfy the complaint requirements established by HUD. Informal complaints are to be filed in writing to:

Compliance Manager Officer Mississippi State Port Authority at Gulfport 2510 14th Street, Suite 880 Gulfport, MS 39501 The written complaint must be signed by the complainant and must contain: •

The complainant’s name and address;

•

The name and address of the respondent of the complaint;

•

A description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance.

Upon receipt of such complaint, the Compliance Manager Officer will designate the appropriate person(s) to investigate the specific allegations of the complaint and render a finding. If it is determined that a violation of the Port Authority’s Section 3 Plan or a breach of the contractual obligations owed to the Port Authority by any contractor (including breaches committed by any such contractor’s subcontractor), the Compliance Manger Officer shall notify the Port Authority of such findings and of the recommended corrective measures. The Port Authority will utilize its

best efforts to provide the results of its findings to the complainant within thirty (30) days after the filing of the informal written complaint. Section 3 Definitions 6 Applicant means any entity which makes an application for section 3 covered assistance, and includes, but is not limited to, any State, unit of local government, public housing agency, Indian housing authority, Indian tribe, or other public body, public or private nonprofit organization, private agency or institution, mortgagor, developer, limited dividend sponsor, builder, property manager, community housing development organization, resident management corporation, resident council, or cooperative association. Assistant Secretary means the Assistant Secretary for Fair Housing and Equal Opportunity. Business concern means a business entity formed in accordance with State law, and which is licensed under State, county or municipal law to engage in the type of business activity for which it was formed. Business concern that provides economic opportunities for low- and very low-income persons. See definition of ‘‘section 3 business concern’’ in this section. Contract. See the definition of ‘‘section 3 covered contract’’ in this section. Contractor means any entity which contracts to perform work generated by the expenditure of section 3 covered assistance, or for work in connection with a section 3 covered project. Employment opportunities generated by section 3 covered assistance means all employment opportunities generated by the expenditure of section 3 covered public and Indian housing assistance (i.e., operating assistance, development assistance and modernization assistance, as described in § 135.3(a)(1 . With respect to section 3 covered housing and community development assistance, this term means all employment opportunities arising in connection with section 3 covered projects (as described in § 135.3(a)(2 , including management and administrative jobs connected with the section 3 covered project. Management and administrative jobs include architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to administrative support of these activities, e.g., construction manager, relocation specialist, payroll clerk, etc. Housing authority means, collectively, public housing agency and Indian housing authority. Housing and community development assistance means any financial assistance provided or otherwise made available through a HUD housing or community development program through any grant, loan, loan guarantee, cooperative agreement, or contract, and includes community development funds in the form of community development block grants, and loans guaranteed under section 108 of the Housing and Community Development Act of 1974, as 6

24 C.F.R.135.5 (as applicable to this Section 3 Plan).

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APPENDIX B

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APPENDIX C

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APPENDIX D

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APPENDIX E

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APPENDIX F

(“Contractor”) (“Subcontractor”).

am a legal resident of

My permanent address is:

Copy of receipt of public assistance

Copy of evidence of participation in public assistance program that assists low or very low income persons

Other evidence:

DATE

SIGNATURE

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APPENDIX G

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APPENDIX H

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APPENDIX I

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