Section 3 Program

Fresno Housing is committed to offering contracting opportunities as well as employment and training opportunities to low-income residents of the Fresno metropolitan area. This effort is required by the U.S. Housing and Urban Development Act of 1968 (also known as Section 3), and is intended to bolster local economic development, improve neighborhood economics, and promote individual and family self-sufficiency. For more information, visit HUD’s Opportunity Portal developed to match Section 3 Workers to jobs and training opportunities as well as matching Section 3 Businesses to contracting opportunities.

Contractors who are considered Section 3 Businesses, or who submit a Section 3 Application with their proposal or bid may receive preference points.  In accordance with 24 C.F.R. Part 75, Fresno Housing will make its best efforts to award contracts and subcontracts to businesses in the following order of priority:

• Businesses who provide economic opportunities (employment and training) to residents of the Fresno Housing development where financial assistance is being expended
• Businesses who provide economic opportunities to residents of the Housing Choice Voucher Program or residents of Fresno Housing properties
• Businesses who provide economic opportunities to participants of the  Department of Labor’s Youth Build Program
• Businesses who provide economic opportunities to low- and very low-income persons residing within the area where assistance is expended

To find more information on becoming a Section 3 Business and the self-registering process you may visit HUD’s Section 3 Business Registry.

DBE Assistance

Including small and minority-owned businesses and women business enterprises in our contracting process is important to Fresno Housing. These efforts comprise:

• Including such firms, when qualified, on solicitation mailing lists;
• Encouraging their participation through direct solicitation of bids or proposals whenever they are potential sources;
• Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by such firms;
• Establishing delivery schedules, where the requirement permits, which encourage participation by such firms;
• Using the services and assistance of the Small Business Administration, and the Minority Business Development Agency of the Department of Commerce;
• Including in contracts, to the greatest extent feasible, a clause requiring contractors to provide opportunities for training and employment for lower-income residents of the project area and to award subcontracts for work in connection with the project to business concerns which provide opportunities to low-income residents, as described in 24 CFR Part 135 (so-called Section 3 businesses); and
• Requiring prime contractors, when subcontracting is anticipated, to take the positive steps listed above.

All contractors must comply with HUD’s Economic Opportunity Program for Low-Income Persons commonly known as Section 3. The second part of the Agency’s Opportunities Plan delineates the requirements related to companies defined as Disadvantaged Business Enterprises (DBE). Examples of these businesses are defined below:

• Small Business Enterprise (SBE) is defined as a business that is:  independently owned; not dominant in its field of operation, and not an affiliate or subsidiary of a business dominant in its field of operation. The size standards in 13 CFR Part 121 should be used to determine business size.
• Minority Business Enterprise (MBE) is a minority-owned business which is at least 51% owned by one or more minority group members; or, in the case of a publicly-owned business, one in which at least 51% of its voting stock is owned by one or more minority group members, and whose management and daily business operations are controlled by one or more such individuals. Minority group members include, but are not limited to, Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Asian Indian Americans, and Hasidic Jewish Americans.
• Women’s Business Enterprise (WBE) is defined as a business that is at least 51% owned by a woman or women who are U.S. citizens and who control and operate the business.

Related Links and Documents:

• Fresno Small Business Administration
• Central California Builders Exchange
• Tulare/Kings County Builders Exchange
• Builders Exchange of Merced & Mariposa
• Asian Business Institute & Resource Center
• Fresno Area Hispanic Chamber of Commerce
• Fresno Downtown Business Hub
• Fresno Metro Black Chamber of Commerce
• Fresno Chamber of Commerce
• Fresno Economic Opportunities Commission

Wage Rates

Davis-Bacon Federal Wage Rates

The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000. Each solicitation issued by Fresno Housing in which Davis-Bacon wage rates apply will contain the applicable wage determination to be used in the related contract. Additional information is available below:

Making Davis-Bacon Work – Practical Guide (PDF)

Making Davis-Bacon Work – Contractor’s Guide (PDF)

HUD Maintenance Wage Rate Determination

For non-construction maintenance work, Fresno Housing must ensure that contractors do not pay its employees that perform such work at a rate less than the rates listed by HUD. For these related rates, visit Wage Determinations Online Program.

Education/Training

Fresno Housing hosts informational presentations to give information about the procurement process and future bid opportunities.  All contractors and vendors are invited to attend.

Topics include:

• Bids and Proposals
• Procurement Website
• Section 3/DBE
• Upcoming Opportunities

Pre-Bid Conferences:

None scheduled at this time.