Earnings and Living Opportunities Act (ELOA)
Proposed House Bill by Congresswoman Nydia Velázquez (D) NY
We are the Nation's Leading Section 3 Compliance and Training Firm.
See our Section 3 resume.
For the first time in the over 40 years since the passing of the 1968 HUD Act has there been any meaningful changes to the Section 3 Regulation. Section 3 requires that residents of federally assisted housing, low income, and homeless persons in the area of certain HUD funded projects be provided, “To the Greatest Extent Feasible”, training, employment and contracting opportunities on HUD funded or insured projects. As a direct result of regulatory compliance failure, it has become a hot button of both members of congress and HUD.
Consequently, Congresswoman Velázquez has floated her proposed changes to that regulation to the industry for comments and feedback. Multiple industry groups testified on July 20, 2009 in a Hearing before the Subcommittee on Housing and Community Opportunity. The testimony and bill overview of David Rammler, Attorney and Director of Government Relations at the National Housing Law Project is found at:
Here are the highlights of the Bills Requirements of HUD Fund Recipient:
These are the hard requirements for Section 3 Resident participation in each contract despite its value:
- The language, “To the greatest extent feasible” is removed
- 30% of All Hours Worked on a project (Gross Payroll)
- 30% New Hires
- 10% of all Building Trade Contract Awards
- 3% of all Other Contracts
- High Preference for HUD Assisted Individuals
Sanctions for Non-Compliance for the Recipient, Contractor, and Sub-Contractor including:
- Reduction of future funding
- Limited denial in participation of HUD programs
- Prohibition of contracting with entities that violate Section 3 when the recipient has notice or knowledge of such previous violation
- Authorizes the Private Right of Action to achieve enforcement by allowing individuals or groups to file law suits directly without having to go through the HUD complaint process
- Increase the term a person or entity can sustain Section 3 status from 36 months to a full five (5) years
- Coordination between all Federal Agencies on the requirements
- Requirement that each local recipient designate, employ, or contract with a Section 3 Coordinator to maintain, monitor, and manage compliance
In direct response to these proposed changes, we have developed a coordination protocol to assist our clients in meeting these compliance requirements, whole or in part. So despite the framework of the final Bill, we are ready to make your jobs easier.
- Develop a sound Section 3-ELOA Policy for Board Approval and Adoption
- Develop and implement an Operations Procedure for Section 3-ELOA Compliance
- Develop a Section 3-ELOA Plan requirement for inclusion in all solicitations for prime and sub-contractors
- Develop a training methodology for conveying the Section 3-ELOA compliance expectations clearly during all pre-bid, pre-proposal, and pre-construction conferences
- Employ our proprietary, web-based compliance data collection, verification, calculating, and reporting system for all contracts, and direct recipient staff hires or training during each reporting period
- Provide tickler reminders to all active contractors and the Client of their reporting requirements
- Respond to all non-compliance issues within 12 hours of notification or missed reporting deadline
- Complete the 60002 or other designated HUD form with electronic delivery to Client in advance of HUD due dates
- Meet with the Client upon request
- Insure the Client against any penalties as direct result of our failure to report the data timely and accurately as provided by the recipient and/or contractor
We encourage all current HUD funded and insured recipients to contact us today for a proposal to provide these and other training services to achieve and maintain compliance. We can be reached directly at
. Trust the company that has been doing this for years and has a resume to prove it. Trust Motivation, Inc.! We service the entire country and beyond.
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