Economic opportunities for low-income persons

(a)

In general

Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) is amended to read as follows:

Opportunities for low- and very low-income persons

(a)

Findings

The Congress finds that— (1)funds administered by the Department of Housing and Urban Development, particularly those intended for housing construction, rehabilitation, repair, modernization, management, self-sufficiency, community development, and other public construction, provide State and local governments, housing providers, and other recipients of this Federal financial assistance with substantial funds for projects and activities that produce significant economic opportunities for the communities where the funds are expended; (2)low- and very low-income persons, especially recipients of government assistance for housing, often face barriers to access training, employment, and contracting opportunities resulting from the expenditure of Federal funds in their communities; (3)training, employment, and contracting opportunities generated by projects and activities that receive assistance from the Department of Housing and Urban Development offer an effective means of empowering low- and very low-income persons and local businesses that provide training and job opportunities for them; (4)prior Federal efforts to direct training, employment, and contracting opportunities generated by programs administered by the Secretary of Housing and Urban Development to low- and very low-income persons, and businesses that provide training and job opportunities for these persons, have not been fully effective and should be intensified; and (5)funding provided to other Federal agencies may also produce significant employment and contracting opportunities for the communities where the funds are expended; (b)

Policy

It is the policy of the Congress and the purpose of this section to ensure that training, employment, and contracting opportunities generated by Federal financial assistance administered by the Secretary of Housing and Urban Development and other Federal agencies, when feasible, shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing. (c)

Administration

There is established, in the Department of Housing and Urban Development, an Office of Economic Opportunities, for carrying out this section. The Office of Economic Opportunities shall assume any functions and responsibilities relating to carrying out this section that, as of the date of enactment of the Affordable Communities Employment Act of 2011, reside in the Office of Fair Housing and Equal Opportunity. (d)

Training

(1)

Recipients

If any recipient of funds administered by the Department provides on-the-job or job-related training to any employee, new hire, or business in relation to the project or projects funded by the Department, priority shall be given to persons and qualified businesses who are eligible for priority under paragraphs (1) and (2), respectively, of subsection (g). (2)

Contractors

If any contractor that performs work connected to the expenditure of funds administered by the Department provides on-the-job training to any employee, new hire, or business in relation to the project or projects funded by the Department, priority for such training should be given to persons and qualified businesses who are eligible for priority under paragraphs (1) and (2), respectively of subsection (g). (3)

Approved training programs

All training provided pursuant to this subsection shall be provided through a program approved by the Federal Government, by a State or local government, or by an endorsed trade association, as such term is defined by the Secretary. Training in relation to the expenditure of funds received by the Department may also refer to secondary, vocational, or higher education programs, as such terms are defined by the Secretary of Education. Recipients and contractors shall be encouraged by the Secretary to provide training by providing performance incentives through the Department’s evaluation process. (4)

Performance incentives

To encourage establishment of exemplary training programs for training provided pursuant to this subsection, the Secretary shall establish and award performance incentives, including through the Department’s evaluation process, to recipients and contractors establishing such exemplary training programs, including programs providing training that promotes career advancement for persons that receive priority under subsection (g). (e)

Employment

(1)

In general

The Secretary shall require that recipients of funds administered by the Department, and their contractors and subcontractors, consistent with existing Federal, State, and local laws and regulations, give priority to low- and very low-income persons for training and employment opportunities generated by such funds. To the extent that a recipient or contractor of funds awarded by the Department intends to enter into a project labor agreement, the project labor agreement shall include a strategy to comply with the requirements of this section. (2)

Requirement to employ low- and very low-income persons

(A)

Condition of assistance

It shall be a condition of any assistance provided by the Secretary to recipients and their contractors and subcontractors, except in the case of rental subsidies provided in accordance with section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) (but not excepting funding provided in accordance with paragraph (13) of such section 8(o)) or other funding streams as determined by the Secretary, for work to be performed in connection with such funds, that— (i)for recipients, a minimum of 30 percent of new hires in connection with such funds shall be low- and very low-income persons who qualify for a priority under subsection (g)(1); and (ii)for contractors, 20 percent of all hours worked shall be performed by low- and very low-income persons who qualify for a priority under subsection (g)(1).

Special consideration shall be given to persons enrolled in State-approved apprenticeship programs. The conditions under this subparagraph shall be applicable to, but not limited to, work such as repair, modernization, management, administrative, professional services, as well as work related to housing rehabilitation, housing construction, or other public construction projects. Recipients that exceed the percentage required under this subparagraph shall receive performance incentives, as the Secretary shall establish, to encourage them to exceed such requirements.

(B)

Compliance

As a condition of any contract awarded for the work described in subparagraph (A), any recipient, contractor, or subcontractor awarded such a contract shall— (i)ensure that all work in connection with their contract complies with the provisions of this subsection; (ii)submit evidence to its awarding agency that clearly describes how compliance with the employment requirements will be achieved; and (iii)submit evidence to its awarding agency that— (I)clearly describes actual outcomes produced in fulfillment of the employment requirements of this section; or (II)(aa)clearly shows that the recipient, contractor, or subcontractor used all feasible means to meet such employment requirements, including the specific actions taken to meet the employment requirements, and why such actions were not successful, and efforts to overcome deficiencies in such actions to meet the employment requirements, (bb)shows why the low- and very low-income persons applying for the employment opportunities could not feasibly be hired, or (cc)is sufficient to show why the employment requirements could not be reached. (3)

First-source contracts

In meeting the requirements under this subsection, recipients of funds administered by the Department, and their contractors and subcontractors may enter into hiring agreements with organizations representing low- and very-low income persons that provide for such recipients, contractors, and subcontractors to make available employment opportunities to such persons represented by such organizations. (4)

Priority for recipients and contractors creating long-term employment opportunities

In making available funds administered by the Department, the Secretary may give priority in the award of such funds to recipients of such funds who, or whose contractors or subcontractors, or both— (A)have a demonstrated history of employing low- and very low-income persons for periods of 12 months or longer in connection with previous such funds; and (B)provide the Secretary with such assurances as the Secretary may require that among the employment opportunities generated by such funds awarded will be employment positions having a duration of 12 months or longer that will be filled only by low- and very-low income persons.

This paragraph may not be construed to preempt, alter, or otherwise affect any other provision of law establishing requirements for, or conditions precedent to, award of funds administered by the Department.

(f)

Contracting

(1)

In general

The Secretary shall require that recipients of funds administered by the Department and their contractors and subcontractors, consistent with existing Federal, State, and local laws and regulations, award contracts for work to be performed in connection with such funds to businesses that provide or retain economic opportunities for low- and very low-income persons. To the extent that a recipient or contractor of funds awarded by the Department intends to enter into a project labor agreement, the project labor agreement shall include a strategy to comply with the requirements of this section. (2)

Requirement to contract with qualified businesses

(A)

Condition of assistance

It shall be a condition of any assistance provided by the Department, that recipients, contractors, and subcontractors for work to be performed in connection with such assistance award a minimum of 10 percent of the total dollar amount of all contracts to qualified businesses under subsection (g)(2)(A). Recipients that exceed such percentage shall receive performance incentives, as the Secretary shall establish, to encourage them to exceed such requirement. (B)

Compliance

As a condition of any contract awarded for the work described in subparagraph (A), any recipient, contractor, or subcontractor awarded such a contract shall— (i)(I)immediately before beginning work under such contract, clearly demonstrate to its awarding agency how compliance with the contracting requirements of this section will be achieved; and (II)submit evidence to its awarding agency clearly showing actual outcomes produced in fulfillment of the contracting requirements of this section; or (ii)if such recipient, contractor, or subcontractor cannot meet the requirements under subparagraph (A)— (I)submit evidence to its awarding agency showing clearly that such contractor used all feasible means to meet such requirement; or (II)provide its awarding agency, as the Secretary shall require by regulation, sufficient evidence to show why qualified businesses that submitted a bid in contracting opportunities could not feasibly have been awarded contracts. (g)

Priority

(1)

Priority of low- and very low-income persons for training and employment

The efforts required under subsections (d) and (e) (relating to training and employment) shall be directed in the following order of priority: (A)First, to recipients of Federal rental assistance, including public housing residents, residents of other federally assisted subsidized properties, and participants in the program under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), who reside in the service area, and the metropolitan area or nonmetropolitan county, where the assistance is being expended. (B)Second, to low- and very low-income residents of the service area, and the metropolitan area or nonmetropolitan county, where the assistance is being expended. (C)Third, to other residents, as designated by the Secretary by regulation, of the service area, and the metropolitan area or nonmetropolitan county, where the assistance is being expended. (2)

Priority of qualified businesses for contracting

The efforts required under subsection (f) (relating to contracting) shall be directed in the following order of priority: (A)First, to qualified businesses that are majority owned and controlled by low- and very-low income persons who reside in the service area, and the metropolitan area or nonmetropolitan county, where the assistance is being expended. (B)Second, to qualified businesses that provide significant training and job opportunities to low- and very low-income persons who reside in the service area, and the metropolitan area or nonmetropolitan county, where the assistance is being expended. (C)Third, to qualified businesses or to disadvantaged businesses, as defined by the Secretary by regulation, that are located in distressed communities that provide economic opportunities to low-income residents of the metropolitan area or nonmetropolitan county where the assistance is being expended. (D)Fourth, to small and disadvantaged qualified businesses as defined by the Small Business Administration. (E)Fifth, to other qualified businesses, as determined by the Secretary by regulation, that are located in the metropolitan area or non-metropolitan county where the assistance is being expended. (h)

Reporting and administrative requirements

All notices of funding availability issued by the Department shall include a provision that notifies applicants of their requirement to comply with this section, the incentives associated with exceeding such requirements and the penalties associated with noncompliance. The Department shall prioritize its funding decisions to recipients that demonstrate that their proposal was developed in consultation with employers, local labor organizations, education and training providers, low- and very low-income persons, especially those entitled to the highest priorities under this section in accordance with paragraph (1) of this subsection, elected bodies representing low- and very low-income persons who live in developments where the assistance is being expended, and community-based organizations that work with the targeted individuals and qualified businesses. Recipients shall be required to include information regarding their compliance with this section in their 5-year plans, annual plans, or any alternative plans that provide for similar reporting. The Department shall make compliance with this section part of any performance standard for recipients and their contractors. (i)

Public accountability

In order to permit public examination and appraisal of the program under this section, to enhance the public accountability of recipients, contractors, and subcontractors, and to facilitate coordination of activities with different stakeholders, each recipient shall in a timely manner— (1)furnish citizens and, as appropriate, other interest groups information with reasonable notice concerning the amount of Federal funds available that are subject to the requirements of this section, by service area; (2)hold annual community hearings to obtain the views of citizens on performance of the recipients, their contractors and subcontractors in complying with this section, and such hearings shall— (A)provide for and encourage citizen participation, with particular emphasis on participation by low- and very low-income persons who are residents of the developments, service areas, or neighborhoods where funds are proposed to be used; and (B)identify how the needs of limited English proficiency low- and very low-income persons will be met in the case of public hearings where a significant number of such persons can be reasonably expected to participate; and (3)provide citizens or, as appropriate, units of general local government or other interested parties with reasonable access to records regarding its past compliance, and that of its contractors and subcontractors, with the program under this section.

Recipients shall ensure that outreach efforts under this subsection are coordinated with available resident participation programs in the service area. The Secretary shall publish and make widely available compliance reports for all recipients for at least the last 5 years.

(j)

Reports

(1)

Agency reports to Secretary

(A)

Requirement

All recipients shall report annually to the Secretary on their employment and contracting requirements and on their contractors and subcontractors performance. Recipients shall ensure that their contractors and subcontractors provide them with the necessary information to furnish such reports. (B)

Information regarding failure to meet employment and contracting requirement

For any period in which the recipient, or their contractor or subcontractor, did not meet their employment or contracting requirement as provided for in subsection (e) or (f), respectively, the report shall describe actions that were taken to meet the requirement, including actions taken or that will be taken in future funding opportunities to address the deficiencies in the actions that resulted in failure to meet employment and contracting requirements. (C)

Public availability

Each report pursuant to this paragraph shall be made available, in its entirety, to the general public not later than 15 business days after the end of the period covered by the report. (2)

Annual reports to Congress

(A)

Requirement

The Secretary shall report annually to the Congress a summary of information derived from the periodic reports required under paragraph (1) and shall provide information on the total amount of Federal funds that are subject to this section, by program area and jurisdiction, and the outcomes produced, including specific information on the amount of training, jobs, and contracting opportunities generated by such funds. (B)

Assessment of noncompliance

Each report shall include an assessment of any noncompliance of any recipients with the requirements of this section, by State, and specific recommendations regarding actions to reduce and eliminate such noncompliance. (C)

Review of effectiveness

Each report shall include a review of the effectiveness of the program in providing jobs for low- and very low-income persons, meeting unmet training and job readiness needs in the community, enabling low- and very low-income persons to hold a steady job, providing contracting opportunities for businesses that qualify for priority under subsection (g)(2), and any recommendations the Secretary determines appropriate regarding the program under this section. (3)

GAO report

Not later than the expiration of the two-year period beginning on the date of the enactment of the Affordable Communities Employment Act of 2011, the Comptroller General of the United States shall submit a report to the Congress on the implementation of this section, that specifically describes the extent of compliance with this section, amount of funds awarded that were covered by this section, and outcomes, and that makes recommendations to improve the section’s effectiveness and a recommendation for when there should be a follow-up report. (k)

Noncompliance

(1)

Investigation and enforcement

In carrying out this section, the Secretary shall develop and implement procedures to review complaints alleging noncompliance by any recipient or contractor with the requirements of this section, and to take such actions as provided in this subsection as the Secretary determines appropriate to ensure compliance and prevent future noncompliance. (2)

Sanctions

Recipient agencies and their contractors and subcontractors that do not comply with this section or the requirements established under the program under this section shall be sanctioned by the Secretary, and such sanctions shall include reduction of future funds from the Department, including any discretionary funds available under the HOPE VI program under section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), debarment, suspension, limited denial of participation in programs of the Department, or such other sanctions as determined by the Secretary to discourage noncompliance. (3)

Limitations on contracts

Recipients shall refrain from entering into contracts with any contractor in any case in which the recipient has notice or knowledge that the contractor has violated this section or the requirements of the program under this section. (4)

Relief and right of action

If an investigation by the Department results in conclusive findings of noncompliance, the Department may require the recipient or contractor to grant relief, such as compensation of costs or damages incurred or suffered, to the aggrieved party, as determined by the Secretary. The aggrieved party also shall have the right to bring a civil action against the recipient or contractor found to be in noncompliance by the Department to recover costs or damages incurred or suffered. (5)

Effect on other rights and remedies

This subsection shall not be construed to interfere with judicial review regarding compliance with this section pursuant to chapter 7 of title 5, United States Code, or an action regarding such compliance under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983), or any other rights or remedies of an aggrieved party and shall not preempt and State or local laws that facilitate achieving the purposes of this section and provide additional protections to low- and very low-income persons or qualified businesses, or both. (l)

Definitions

For the purposes of this section, the following definitions shall apply: (1)

Contractor

The term contractor means any entity that contracts with a recipient to perform work generated by the expenditure of assistance from the Department of Housing and Urban Development. (2)

Department

The term Department means the Department of Housing and Urban Development. (3)

Low- and very low-income persons

The terms low-income persons and very low-income persons have the same meanings given the terms low-income families and very low-income families, respectively, in section 3(b)(2) of the United States Housing Act of 1937, or such other definitions as the Secretary may determine appropriate to facilitate the employment of a low- and very low-income persons in a designated area or areas, on a temporary or permanent basis, based on a family’s receipt, in such area or areas of Federal, State, or local government housing, income, food, or other subsidies, and on such other criteria as the Secretary may establish through regulation. Notwithstanding any provision of this paragraph, any person who qualifies for a priority under subsection (g)(1), and who was very low income shall, for purposes of this section, continue to qualify, as initially verified, for a period of 5 years, irrespective of any increase in the person’s income or other change in that person’s priority status during such period. (4)

Qualified business

The term qualified business means a entity that meets such criteria as the Secretary may establish, which may include a national certification process. (5)

Recipient

The term recipient means any entity that receives assistance directly from the Department, and includes any State, unit of local government, public housing agency, Indian housing authority, Indian tribe, and any other public body, public or private nonprofit or for-profit organization, and private agency or institution. (6)

Secretary

The term Secretary means, except as specifically provided otherwise, the Secretary of Housing and Urban Development. (m)

Coordination with other Federal Agencies

(1)

Collaborative agreements

Within 180 days after the enactment of the Affordable Communities Employment Act of 2011, the Secretary shall enter into formal collaborative agreements regarding training, employment, contracting, or other areas as determined by the Secretary for low- and very low-income persons and qualified businesses with the Secretary of Labor, the Secretary of Health and Human Services, the Secretary of Commerce, the Administrator of the Small Business Administration, the Secretary of Transportation, the Secretary of Education, and the heads of such other Federal agencies as the Secretary determines necessary to carry out this section and to promote and maximize access to existing resources and programs. (2)

Report

Within 12 months after the enactment of the Affordable Communities Employment Act of 2011, the Secretary shall submit a report to the Congress on changes needed in the programs administered by other agencies that interact with the program under this section to facilitate the effective implementation and outcomes of the program under this section.

(b)

Regulations

Not later than 120 days after the date of the enactment of this Act, the Secretary of Housing and Urban Development shall issue regulations to implement the requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), as amended by subsection (a) of this section.