Agenda packet — Hughson City Council, July 14, 2025 (part 3 of 3)

Classification
(Journeyperson)
Basic
Hourly
Rate
Hoursa
Total
Hourly
Rate
Daily
Overtime
Hourly
Rate
(1 ½ X)
Saturday
Overtime
Hourly
Rate
(1 ½ X)b
Sunday/
Holiday
Overtime
Hourly
Rate
Steel form raiser and setter, timberman, retimberman (wood or steel or substitute materials), tugger, cabletender, certified welder, chucktender, powderman-primer house
$47.78 8.0 $78.15 $102.04 $102.04 $125.93
Vibratorman, pavement breaker, bull gang-mucker, trackman, concrete crew including rodding and spreading $47.33 8.0 $77.70 $101.365 $101.365 $125.03 Dumpman (any method), grout crew, reboundman, swamper/brakeman, watchman $46.79 8.0 $77.16 $100.555 $100.555 $123.95
Wages and Total Hourly Rates (including employer payments) – Special Single and Second Shift:

Classification
(Journeyperson)
Basic
Hourly
Rate
Hoursa
Total
Hourly
Rate
Daily
Overtime
Hourly
Rate
(1 ½ X)
Saturday
Overtime
Hourly
Rate
(1 ½ X)b
Sunday/
Holiday
Overtime
Hourly
Rate
Diamond driller, groundman, gunite or shotcrete nozzleman $51.26 8.0 $81.63 $107.26 $107.26 $132.89 Rodman, shaft work and raise (below actual or excavated ground level) $51.03 8.0 $81.40 $106.915 $106.915 $132.43 Bit grinder, blaster, driller, powderman-heading, cherry pickerman-where car is lifted, concrete finisher in tunnel, concrete/screed man, grout pumpman and potman, gunite and shotcrete gunman and potman, headerman, high pressure nozzleman, miner-tunnel, including top and bottom man on shaft and raise work, nipper, nozzleman on slick line, sandblaster-potman (work assignment interchangeable)
$50.78 8.0 $81.15 $106.54 $106.54 $131.93
Steel form raiser and setter, timberman, retimberman (wood or steel or substitute materials), tugger, cabletender, certified welder, chucktender, powderman-primer house
$50.78 8.0 $81.15 $106.54 $106.54 $131.93
Vibratorman, pavement breaker, bull gang-mucker, trackman, concrete crew including rodding and spreading $50.33 8.0 $80.70 $105.865 $105.865 $131.03 Dumpman (any method), grout crew, reboundman, swamper/brakeman, watchman $49.79 8.0 $80.16 $105.055 $105.055 $129.95
399
Determination: NC-23-102-11-2024-2

Page 3 of 3 ends

Employer Payments (All Shifts):

Type of Fund Amount
Health and Welfare $10.60
Pension $14.96
Vacation and Holidayc $3.51
Training $0.98
Other $0.32
When designated by an employer, state licensed blaster receives $1.00 per hour above miner’s rate.

Note:

Rates for tunnel workers working in compressed air as well as their support classifications are available by request. Please contact the Office of the Director - Research Unit at (415) 703-4774.

Recognized holidays:

Holidays upon which the general prevailing hourly wage rate for Holiday work shall be paid, shall be all holidays in the collective bargaining agreement, applicable to the particular craft, classification, or type of worker employed on the project, which is on file with the Director of Industrial Relations. If the prevailing rate is not based on a collectively bargained rate, the holidays upon which the prevailing rate shall be paid shall be as provided in Section 6700 of the Government Code. You may obtain the holiday provisions for the current determinations on the Director's General Prevailing Wage Determinations Website (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm). Holiday provisions for current or superseded determinations may be obtained by contacting the Office of the Director – Research Unit at (415) 703-4774.

Travel and/or subsistence payment:

In accordance with Labor Code Sections 1773.1 and 1773.9, contractors shall make travel and/or subsistence payments to each worker to execute the work. You may obtain the travel and/or subsistence provisions for the current determinations on the Director's General Prevailing Wage Determinations Website (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm). Travel and/or subsistence requirements for current or superseded determinations may be obtained by contacting the Office of the Director – Research Unit at (415) 703-4774.
# Indicates an apprenticeable craft. The current apprentice wage rates are available on the Prevailing Wage Apprentice Determinations Website (http://www.dir.ca.gov/OPRL/PWAppWage/PWAppWageStart.asp). a Saturdays in the same work week may be worked at straight-time if job is shut down during the normal workweek due to inclement weather. Excludes Alameda, Contra Costa, and San Francisco Counties. b One and one-half (1 ½ ) times the regular straight time hourly rate shall be paid for all work on Saturdays (except make up day) and before a shift begins and after it ends.
c Includes an amount for supplemental dues.
400

GENERAL PREVAILING WAGE DETERMINATION MADE BY THE DIRECTOR OF INDUSTRIAL RELATIONS PURSUANT TO CALIFORNIA LABOR CODE PART 7, CHAPTER 1, ARTICLE 2, SECTIONS 1770, 1773 AND 1773.1

FOR COMMERCIAL BUILDING, HIGHWAY, HEAVY CONSTRUCTION AND DREDGING PROJECTS Craft: TUNNEL/UNDERGROUND (OPERATING ENGINEER-HEAVY AND HIGHWAY WORK)# Determination:

NC-23-63-1-2024-1C
Issue Date:

August 22, 2024
Expiration date of determination:

June 29, 2025** The rate to be paid for work performed after this date has been determined. If work will extend past this date, the new rate must be paid and should be incorporated in contracts entered into now. Contact the Office of the Director - Research Unit for specific rates at (415) 703-4774.

Localities:

All localities within Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba Counties.

AREA 1 - Alameda, Butte, Contra Costa, Kings, Marin, Merced, Napa, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Stanislaus, Sutter, Yolo and Yuba counties; and portions of Alpine, Amador, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Lake, Lassen, Madera, Mariposa, Mendocino, Monterey, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sonoma, Tehama, Tulare, Tuolumne and Trinity Counties. (Portions of counties falling in each area detailed in the Operating Engineer (Heavy and Highway Work) determination)
Wages and Employer Payments (Area 1):

Page 2 of 6 ends

Classification
(Journeyperson)
Classification Groupa
Basic
Hourly
Rate
Health
and
Welfare
Pension
Vacation
and
Holidayb
Training Other Hoursc
Total
Hourly
Rate
Daily/
Saturday
Overtime
Hourly Rate
(1½ x)d
Sunday/
Holiday
Overtime
Hourly Rate
(2 x)
Shafts Stopes & Raises Group 1 $60.25 $13.38 $11.28 $6.03 $1.21 $1.60 8 $93.75 $123.88 $154.00 Shafts Stopes & Raises Group 2 $58.99 $13.38 $11.28 $6.03 $1.21 $1.60 8 $92.49 $121.99 $151.48 Shafts Stopes & Raises Group 3 $57.66 $13.38 $11.28 $6.03 $1.21 $1.60 8 $91.16 $119.99 $148.82 Shafts Stopes & Raises Group 4 $56.52 $13.38 $11.28 $6.03 $1.21 $1.60 8 $90.02 $118.28 $146.54 Shafts Stopes & Raises Group 5 $55.38 $13.38 $11.28 $6.03 $1.21 $1.60 8 $88.88 $116.57 $144.26 AREA 2 - Modoc, and portions of Alpine, Amador, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Lake, Lassen, Madera, Mariposa, Mendocino, Monterey, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sonoma, Tehama, Tulare, Tuolumne and Trinity Counties. (Portions of counties falling in each area detailed in the Operating Engineer (Heavy and Highway Work) determination).

Wages and Employer Payments (Area 2):

Classification
(Journeyperson)
Classification Groupa
Basic
Hourly
Rate
Health
and
Welfare
Pension
Vacation
and
Holidayb
Training Other Hoursc
Total
Hourly
Rate
Daily/
Saturday
Overtime
Hourly Rate
(1½ x)d
Sunday/
Holiday
Overtime
Hourly Rate
(2 x)
Underground Rate Group 1-A $64.62 $13.38 $11.28 $6.03 $1.21 $1.60 8 $98.12 $130.43 $162.74 Underground Rate Group 1 $62.15 $13.38 $11.28 $6.03 $1.21 $1.60 8 $95.65 $126.73 $157.80 Underground Rate Group 2 $60.89 $13.38 $11.28 $6.03 $1.21 $1.60 8 $94.39 $124.84 $155.28 Underground Rate Group 3 $59.56 $13.38 $11.28 $6.03 $1.21 $1.60 8 $93.06 $122.84 $152.62 Underground Rate Group 4 $58.42 $13.38 $11.28 $6.03 $1.21 $1.60 8 $91.92 $121.13 $150.34 Underground Rate Group 5 $57.28 $13.38 $11.28 $6.03 $1.21 $1.60 8 $90.78 $119.42 $148.06 Shafts Stopes & Raises Group 1-A $64.72 $13.38 $11.28 $6.03 $1.21 $1.60 8 $98.22 $130.58 $162.94 Shafts Stopes & Raises Group 1 $62.25 $13.38 $11.28 $6.03 $1.21 $1.60 8 $95.75 $126.88 $158.00 Shafts Stopes & Raises Group 2 $60.99 $13.38 $11.28 $6.03 $1.21 $1.60 8 $94.49 $124.99 $155.48 Shafts Stopes & Raises Group 3 $59.66 $13.38 $11.28 $6.03 $1.21 $1.60 8 $93.16 $122.99 $152.82 Shafts Stopes & Raises Group 4 $58.52 $13.38 $11.28 $6.03 $1.21 $1.60 8 $92.02 $121.28 $150.54 Shafts Stopes & Raises Group 5 $57.38 $13.38 $11.28 $6.03 $1.21 $1.60 8 $90.88 $119.57 $148.26 402
Determination: NC-23-63-1-2024-1C

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CLASSIFICATIONS
GROUP 1-A
Tunnel Bore Machine Operator - 20 feet in diameter or more GROUP 1
Heading Shield Operator
Heavy Duty Repairman/Welder
Mucking Machine
Raised Bore Operator
Tunnel Mole Bore Operator
Tunnel Boring Machine Operator 10 ft up to 20 ft
GROUP 2
Combination Slusher and Motor Operator
Concrete Pump or Pumpcrete Guns
Power Jumbo Operator
GROUP 3
Drill Doctor
Mine or Shaft Hoist
GROUP 4
Combination Slurry Mixer Cleaner
Grouting Machine Operator
Motorman
GROUP 5
Bit Sharpener
Brakeman
Combination Mixer and Compressor (Gunite)
Compressor Operator
Assistant to Engineer
Pump Operator
Slusher Operator
403

GENERAL PREVAILING WAGE DETERMINATION MADE BY THE DIRECTOR OF INDUSTRIAL RELATIONS PURSUANT TO CALIFORNIA LABOR CODE PART 7, CHAPTER 1, ARTICLE 2, SECTIONS 1770, 1773 AND 1773.1

FOR COMMERCIAL BUILDING, HIGHWAY, HEAVY CONSTRUCTION AND DREDGING PROJECTS Craft: TUNNEL/UNDERGROUND (OPERATING ENGINEER-HEAVY AND HIGHWAY WORK# (SPECIAL SINGLE AND SECOND SHIFT)
Determination:

NC-23-63-1-2024-1C
Issue Date:

August 22, 2024
Expiration date of determination:

Localities:

Page 5 of 6 ends

Classification
(Journeyperson)
(Special Single and Second Shift)
Classification Groupa
Basic
Hourly
Rate
Health
and
Welfare
Pension
Vacation
and
Holidayb
Training Other Hours
Total
Hourly
Rate
Daily/
Saturday
Overtime
Hourly Rate
(1½ x)
d
Sunday/
Holiday
Overtime
Hourly Rate
(2 x)
Shafts Stopes & Raises Group 1-A $68.72 $13.38 $11.28 $6.03 $1.21 $1.60 8 $102.22 $136.58 $170.94 Shafts Stopes & Raises Group 1 $66.25 $13.38 $11.28 $6.03 $1.21 $1.60 8 $99.75 $132.88 $166.00 Shafts Stopes & Raises Group 2 $64.99 $13.38 $11.28 $6.03 $1.21 $1.60 8 $98.49 $130.99 $163.48 Shafts Stopes & Raises Group 3 $63.66 $13.38 $11.28 $6.03 $1.21 $1.60 8 $97.16 $128.99 $160.82 Shafts Stopes & Raises Group 4 $62.52 $13.38 $11.28 $6.03 $1.21 $1.60 8 $96.02 $127.28 $158.54 Shafts Stopes & Raises Group 5 $61.38 $13.38 $11.28 $6.03 $1.21 $1.60 8 $94.88 $125.57 $156.26 AREA 2 - Modoc, and portions of Alpine, Amador, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Lake, Lassen, Madera, Mariposa, Mendocino, Monterey, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sonoma, Tehama, Tulare, Tuolumne and Trinity Counties. (Portions of counties falling in each area detailed in the Operating Engineer (Heavy and Highway Work) determination) Wages and Employer Payments (Area 2):

Classification
(Journeyperson)
(Special Single and Second Shift)
Classification Groupa
Basic
Hourly
Rate
Health
and
Welfare
Pension
Vacation
and
Holidayb
Training Other Hours
Total
Hourly
Rate
Daily/
Saturday
Overtime
Hourly
Rate (1½
x)
d
Sunday/
Holiday
Overtime
Hourly Rate
(2 x)
Underground Rate Group 1-A $70.62 $13.38 $11.28 $6.03 $1.21 $1.60 8 $104.12 $139.43 $174.74 Underground Rate Group 1 $68.15 $13.38 $11.28 $6.03 $1.21 $1.60 8 $101.65 $135.73 $169.80 Underground Rate Group 2 $66.89 $13.38 $11.28 $6.03 $1.21 $1.60 8 $100.39 $133.84 $167.28 Underground Rate Group 3 $65.56 $13.38 $11.28 $6.03 $1.21 $1.60 8 $99.06 $131.84 $164.62 Underground Rate Group 4 $64.42 $13.38 $11.28 $6.03 $1.21 $1.60 8 $97.92 $130.13 $162.34 Underground Rate Group 5 $63.28 $13.38 $11.28 $6.03 $1.21 $1.60 8 $96.78 $128.42 $160.06 Shafts Stopes & Raises Group 1-A $70.72 $13.38 $11.28 $6.03 $1.21 $1.60 8 $104.22 $139.58 $174.94 Shafts Stopes & Raises Group 1 $68.25 $13.38 $11.28 $6.03 $1.21 $1.60 8 $101.75 $135.88 $170.00 Shafts Stopes & Raises Group 2 $66.99 $13.38 $11.28 $6.03 $1.21 $1.60 8 $100.49 $133.99 $167.48 Shafts Stopes & Raises Group 3 $65.66 $13.38 $11.28 $6.03 $1.21 $1.60 8 $99.16 $131.99 $164.82 Shafts Stopes & Raises Group 4 $64.52 $13.38 $11.28 $6.03 $1.21 $1.60 8 $98.02 $130.28 $162.54 Shafts Stopes & Raises Group 5 $63.38 $13.38 $11.28 $6.03 $1.21 $1.60 8 $96.88 $128.57 $160.26 405
Determination: NC-23-63-1-2024-1C

Page 6 of 6 ends

Recognized holidays:

Travel and/or subsistence payment:

In accordance with Labor Code Sections 1773.1 and 1773.9, contractors shall make travel and/or subsistence payments to each worker to execute the work. You may obtain the travel and/or subsistence provisions for the current determinations on the Director's General Prevailing Wage Determinations Website (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm). Travel and/or subsistence requirements for current or superseded determinations may be obtained by contacting the Office of the Director – Research Unit at (415) 703-4774. # Indicates an apprenticeable craft. The current apprentice wage rates are available on the Prevailing Wage Apprentice Determinations Website (http://www.dir.ca.gov/OPRL/PWAppWage/PWAppWageStart.asp). a For classifications within each group, see page 3. b Includes an amount for supplemental dues.
c When three shifts are employed for five (5) or more consecutive days, seven and one-half (7½) consecutive hours (exclusive of meal period), shall constitute a day of work, for which eight (8) times the straight time hourly rate shall be paid at the non-shift wage rate for the second shift. The third shift shall be seven (7) hours of work for eight (8) hours of pay at the non-shift wage rate. d Saturday in the same work week may be worked at straight-time if a job is shut down during the normal work week due to inclement weather. 406

DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT
1010 10TH Street, Suite 3400, Modesto, CA 95354
Planning Phone: (209) 525-6330 Fax: (209) 525-5911
Building Phone: (209) 525-6557 Fax: (209) 525-7759
______________________________________________________________________________________________ U.S. Department of Housing and
Urban Development (HUD)
Supplemental General Conditions
Documents Packet

All Bidders Must Review This Document and Complete All
Applicable Pages and Submit Said Pages At The Time Of The Bid Opening
STRIVING TOGETHER TO BE THE BEST!
407
2 Table of Contents
Instructions 3
Stanislaus County Public Works Projects 3
City Infrastructure Projects 3
Supplemental Documentation Checklist 4
Notice of Required Documentation to Contractors 5
Contract Provisions 5
Procurement 5
Build America Buy America (BABA) 5
Compliance with Equal Employment Opportunity (EEO) 6
Small Business, Minority Business, Women’s Business Enterprises, Veteran-Owned Businesses, and Labor Surplus Area Firms 8
Compliance with the Anti-Kickback Act 8
Compliance with Davis-Bacon Act 8
Compliance with Section 103 & 107 of the Contract Work Hours & Safety Standards Act 9 Access to Records 9
Records Retention 10
Compliance with Clean Air & Water Acts 10
Energy Conservation (24 CFR 85.36 (i) (13)) 10
Federal Labor Standards Provisions 10
Compliance in the Provision of Training, Employment, and Business Opportunities 11 Title VI Civil Rights Act of 1964 11
Title VIII Civil Rights Act of 1968 12
Debarment and Suspension 12
Byrd Anti-Lobbying Amendment 12
Procurement of Recovered Materials 13
Prohibition on Certain Telecommunications and Video Surveillance Equipment or Services 13 Remedies for Breach 13
Termination for Convenience or Cause 14
Rights to Inventions Made Under a Contract or Agreement 14 Forms, Reports and Policies 15
Section 3 Requirements 15
Required Section 3 Forms, Reports & Section 3 Plan 15
Small and Disadvantaged Business Enterprise (SDBE) Information 16 What is DBE? 16
Disadvantaged Business Enterprise Participation 16
Wage Sheet & Classification Review 17
Review of Project Wage Sheet 17
Additional Classifications 17
Minimum Criteria for Additional Classification Requests 17 Wage Payment Compliance 17
Payment of Fringe Benefits 18
Failure to Pay Prevailing Wages 18
Failure to Pay Overtime Compensation 18
Debarment Proceeding 18
Required Form Exhibits & LMI:

Exhibit A: BABA Covered Materials & Manufactured Goods Acknowledgement Exhibit B: BABA Covered Materials & Manufactured Goods List Exhibit C: Disadvantaged Business Enterprise Participation Exhibit D: Stanislaus County Disadvantaged Business Enterprise Participation Certification Exhibit E: Federal Labor Standards Provisions
Exhibit F: Compliance in the Provision of Training, Employment, and Business Opportunities – Section 3 Exhibit G: Section 3- Outreach Efforts
Exhibit H: Certification Regarding Lobbying
Exhibit I: Contractors/Subcontractors Certification and Wage Rate Sheet 408
3 v.2.2024

INSTRUCTIONS
The Prime Contractor and all subcontractors are required to adhere to the requirements outlined in this documentation. The distinction between County Public Works and City Infrastructure projects should be distinguished by the appropriate check box, which designates the project type and ownership.

Stanislaus County Public Works Projects or City Infrastructure Projects ☐ As the Prime Contractor and any subcontractor submitting this document, on behalf of Stanislaus County Public Works, I, the undersigned, acknowledge that all documentation pertaining to the following project is true and correct to the best of my knowledge.

Name of
Representative
Submitting
Document:

Title of
Representative:

Project Name:

Project
Location:

Name of
Contractor:

Name of
Subcontractor:

Funding Type:
☐ As the Prime Contractor and any subcontractor submitting this document, on behalf of the City of __________________, I, the undersigned, acknowledge that all documentation pertaining to the following project is true and correct to the best of my knowledge.

Name of
Representative
Submitting
Document:

Title of
Representative:

Project Name:

Project
Location:

Name of
Contractor:

Name of
Subcontractor:

Funding Type:
409
4 SUPPLEMENTAL DOCUMENTATION CHECKLIST
This checklist has been placed in this supplemental packet for your organization and/or agency use and to determine compliance with the required documentation that is applicable to the General Conditions of U.S. Department of Housing and Urban Development (HUD) funded projects. As a requirement, all documents that are attached as an exhibit to this Supplemental General Conditions Documents Packet are listed below for your tracking convenience.

Exhibit Document Title Completed Date Designee Signature A
BABA Covered Materials &
Manufactured Goods
Acknowledgement
☐
B
BABA Covered Materials &
Manufactured Goods List ☐
C
Disadvantaged Business
Enterprise Participation ☐
D
Stanislaus County
Disadvantaged Business
Enterprise Participation
Certification
☐
E
Federal Labor Standards
Provisions ☐
F
Compliance in the Provision of
Training, Employment, and
Business Opportunities –
Section 3
☐
G Section 3- Outreach Efforts ☐
H
Certification Regarding
Lobbying ☐
I
Contractors/Subcontractors
Certification and Wage
Rate Sheet
☐
410
5 v.2.2024

NOTICE OF REQUIRED DOCUMENTATION TO

CONTRACTORS

CONTRACT PROVISIONS
(Required for all City Projects and/or County Public Works Project bidding and contract documents for HUD-funded projects)
Contractor is required to comply with the following provisions:

A. Procurement
Contractor must comply with 2 CFR Sections 200.317-200.327 when purchasing materials, products or services with federal funds.

B. Build America, Buy America (BABA) Act Requirements
The Build America, Buy America (BABA) Act, 41 USC § 8301, was enacted in the Infrastructure Investment and Jobs Act on November 15, 2021. The BABA Act requires that products purchased in connection with infrastructure projects funded by Federal financial assistance (FFA) programs must be produced in the United States (U.S.). This requirement is known as the “Buy America Preference (BAP)” (or “domestic procurement requirement”).

The prime contractor and all subcontractors (all tiers) must comply with the requirements of the BABA Act, 41 USC 8301, and all applicable rules and notices, as may be amended, as applicable to all HUD-funded infrastructure projects. Pursuant to the U.S. Department of Housing and Urban Development’s (HUD’s) notice, “Public Interest Phased Implementation Waiver for FY2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 FR 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.

All iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects listed in the table below must be produced in the U.S. unless the project or purchase qualifies for a waiver or exemption. The contractor must maintain records that verify compliance with the BAP requirement for iron and steel materials and provide them to the City and County upon request throughout the project, and all final documentation must be submitted within 60 days of the Notice of Completion of the project. Infrastructure projects that are awarded CDBG funds in or after 2023 are subject to the BAP requirement. Additional information on which the construction work is covered by BAP requirements and compliance can be found as Exhibit A (BABA Covered Materials & Manufactured Goods Acknowledgement) and Exhibit B (BABA Covered Materials & Manufactured Goods List).

The contractor must maintain records that verify compliance with the BAP requirements and provide them to the City and/or County upon request throughout the project, and all final documentation must be submitted within 60 days of the Notice of Completion of the project.

Infrastructure projects that are awarded CDBG funds in or after 2023 are subject to the BAP requirement.
411
6 Additional information and resources are provided at the following HUD BABA CPD Notice:
https://www.hud.gov/sites/dfiles/OCHCO/documents/cpd-25-01.pdf. Per 2 CFR Section 200.322, the Contractor should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products).

C. Compliance with Equal Employment Opportunity provisions (2 CFR Part 200 App. II(C); 41 CFR 60-1.4(b)).

Federal regulations mandate including the following language in non-exempt federally assisted construction contracts. Note, however, that Executive Order 11246 was rescinded by Executive Order 14173 on January 21, 2025.

During the performance of this contract, the Contractor agrees as follows:

1. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin.

The Contractor will take affirmative action to ensure that applicants are employed, and the employees are treated during employment, without regard to their race, color, religion, sex, are sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

2. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.

3. The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee’s essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor’s legal duty to furnish information.

4. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the Contractor's commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
412
7 v.2.2024

5. The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor.

6. The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

7. In the event of the Contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by the rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

8. The Contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. 413
8 The Contractor also consents to compliance with all executive orders listed in 24 CFR Part 570.607.

D. Small Business, Minority Business, Women’s Business Enterprises, Veteran-Owned Businesses, and Labor Surplus Area Firms (2 CFR Section 200.321).

The contractor shall carry out applicable requirements of 2 CFR Section 200.321 in the award and administration of HUD-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate. Contractor must, at a minimum, take the following steps to consider the use of small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms:

1. Placing these qualified businesses on solicitation lists;

2. Assuring that these businesses are solicited whenever they are potential sources;

3. Dividing procurement transactions into separate procurements when economically feasible to permit maximum participation by these businesses;

4. Establishing delivery schedules that encourage participation by these businesses; and

5. Utilizing such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.

Please Note: Utilize Exhibit C (Disadvantaged Business Enterprise Participation) and Exhibit D (Stanislaus County Disadvantaged Business Enterprise Participation Certification) to document participation.

E. Compliance with Anti-Kickback Act (2 CFR Part 200 App. II(D)) In carrying out this agreement, the Contractor hereby agrees to adhere to the mandate dictated by the Copeland "Anti-Kickback" Act (18 U.S.C. 874; 40 U.S.C. 3145), as supplemented by 29 CFR Part 3, which provides that each Contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of work, to give up any part of the compensation to which he is otherwise entitled. A breach of these provisions may be grounds for termination of the Agreement, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12.

F. Compliance with Davis Bacon Act (40 U.S.C. 3141-3144, 3146-3148) (2 CFR Part 200 App. II(D))
In carrying out this agreement, the Contractor hereby agrees to comply with the requirements of the Davis-Bacon Act, as amended (40 U.S.C. 3141-3144, 3146-3148) and as supplemented in the US Department of Labor regulations 29 CFR Part 5, with respect to construction contracts in excess of $2,000 awarded by non-Federal entities. In accordance with the statute, Contractor must pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, Contractor must pay wages not less than once a week. The decision to award this Agreement is expressly conditioned upon the acceptance of the wage determination. The County will report all suspected or reported violations to the Federal awarding agency. 414
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G. Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (2 CFR Part 200 App. II(E), 24 CFR 570.603)

1. In general. In carrying out this agreement, the Contractor hereby agrees to comply with the requirements of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708) as supplemented in US Department of Labor regulations 29 CFR Part 5, with respect to construction contracts in excess of $100,000 awarded by non-Federal entities that involve the employment of mechanics or laborers.

2. Overtime requirements. Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Additionally, the regulations in 24 CFR Part 70 apply to the use of volunteers.

3. Violation; lability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (2) of this section, the Contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, Contractor and subcontractor(s) shall be liable to the United States for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a) of this section, in the sum of $32 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a) of this section.

4. Withholding for unpaid wages and liquidated damages. The County shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b) of this section.

5. Subcontracts. The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (a) through (d) of this section and also a clause requiring the subcontractors to include these clauses in any lower-tier subcontracts. The Contractor shall be responsible for compliance by any subcontractor or lower-tier subcontractor with the clauses set forth in paragraphs (a) through (d) of this section.

H. Access to Records (2 CFR 200.337)
The Contractor shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this contract and 415
10 such other records as may be deemed necessary by the grantee to assure proper accounting for all funds applicable to this contract. The County, City, U.S. Department of Housing and Urban Development, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any records of the contractor pertinent to this contract, for the purpose of performing audits executing site visits, or for any other official use. The Contractor must take measures to protect the names of victims of a crime when access to the victim's name is necessary.

I. Records Retention (24 CFR 570.502(a)(7); 2 CFR 200.334)) Notwithstanding the below exceptions, the Contractor must retain all Federal award records for three years from the date of submission of their final financial report. For awards that are renewed quarterly or annually, the Contractor must retain records for three years from the date of submission of their quarterly or annual financial report, respectively. Records to be retained include but are not limited to, financial records, supporting documentation, and statistical records.

The following exceptions apply:
• The retention period for individual CDBG activities shall be the longer of 5 years after the expiration or termination of the subrecipient agreement under 24 CFR Section 570.503, or 5 years after the submission of the annual performance and evaluation report, as prescribed in 24 CFR Section 91.520, in which the specific activity is reported on for the final time;
• Records for individual activities subject to the reversion of assets provisions at 24 CFR Section 570.503(b)(7) or change of use provisions at 24 CFR Part 570.505 must be maintained for as long as those provisions continue to apply to the activity; and • Records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities must be retained until such receivables or liabilities have been satisfied.

J. Compliance with Clean Air and Water Acts (2 CFR Part 200 App. II(G) (12)) In carrying out this agreement, the contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Federal Clean Air Act (42 USC 7401 et seq.) and the Federal Water Pollution Control Act (33 USC 1251 et seq.), as amended, for contracts and subgrants in excess of $150,000. Violations must be reported to the County, the Federal awarding agency, and the Regional Office of the EPA. Contractor will include these requirements in each subcontract exceeding $150,000 that receives any federal funding.

K. Energy Conservation (24 CFR 85.36 (i) (13))
In carrying out this agreement, the contractor agrees to comply with the requirements of mandatory standards and policies relating to energy efficiency which are contained in the State of California’s energy conservation plan issued in compliance with the federal Energy Policy and Conservation Act (PL 94-163, 89 Statutes 871).

L. Federal Labor Standards Provisions: (Applicable to construction contracts in excess of $2,000 or residential rehabilitation contracts Involving more than eight units)
The Project or program to which the construction work covered by this Contract pertains is being assisted by the United States of America and the Federal Labor Standards Provisions 416
11 v.2.2024
as set forth on Exhibit E are included in this Contract pursuant to the provisions applicable to such Federal assistance. These provisions must be complied with or sanctions will be instituted.

The Contractor or subcontractor will insert in any subcontracts the clauses contained in subparagraphs 1 through 11 of paragraph A of the Federal Labor Standards Provisions (Exhibit E) and such other clauses as HUD or its designee may by appropriate instructions require, and a copy of the applicable prevailing wage decision, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in paragraph A of the Federal Labor Standards Provisions (Exhibit E).

M. Compliance in the Provision of Training, Employment, and Business Opportunities – Section 3
The work to be performed under this contract is on a project assisted under a program providing direct federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC, 1701u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the area of the Section 3 covered project, and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the Section 3 covered project.

Please Note: Exhibit F and Exhibit G must be completed to comply with the above referenced requirements.

N. Title VI Civil Rights Act of 1964:

During the performance of this contract, the contractor, for itself, its assignees and successors in interest (hereinafter referred to as the “contractor”), agrees as follows:

1. The contractor, with regard to the work performed by it during the contract, shall not discriminate on the grounds of race, color, sex or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The contractor shall not participate either directly or indirectly in the discrimination prohibited by Section 1.4 of the HUD Regulations, including employment practices.

2. In all solicitations either by competitive bidding or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential sub-contractor or supplier shall be notified by the contractor of the contractor’s obligations under this contract and the regulations relative to nondiscrimination on the grounds of race, color, sex, or national origin.

3. The contractor shall provide all information and reports required by the Regulations or directives issued pursuant thereto, and shall permit access to its books, records, accounts, their sources of information and its facilities as may be determined by the Stanislaus County (awarding agency)* or the United States Department of Housing and Urban Development to be pertinent to ascertain compliance with such regulations, orders and instructions. Where 417
12 any information is required or a contractor is in the exclusive possession of another who fails or refuses to furnish this information, the contractor shall so certify to Stanislaus County (awarding agency) or the United States Department of Housing and Urban Development, as appropriate, and shall set forth what efforts it has made to obtain the information.

4. In the event of the contractor’s noncompliance with the nondiscrimination provisions of this contract, Stanislaus County (awarding agency) or the United States Department of Housing and Urban Development shall impose such contract sanctions as it may determine to be appropriate, including, but not limited to:
a) Withholding of payments to the contractor under the contract until the contractor complies; and/or,
b) Cancellation, termination or suspension of the contract, in whole or in part.

5. The contractor shall include the provisions of paragraph (P1) through (P5) in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto. The contractor shall take such action with respect to any subcontract or procurement as Stanislaus County (awarding agency) or the United States Department of Housing and Urban Development may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the contractor may request the Stanislaus County (awarding agency) to enter into such litigation to protect the interests the Stanislaus County (awarding agency), and, in addition, the contractor may request the United States Department of Housing and Urban Development to enter into such litigation to protect the interests of the United States.
* Stanislaus Urban County Awarding Agencies: Stanislaus County, City of Ceres, City of Hughson, City of Newman, City of Oakdale, City of Patterson, City of Riverbank, and City of Waterford.

O. Title VIII Civil Rights Acts of 1968 (as applicable):

The contractor shall comply with Title VIII Civil Rights Acts of 1968 which prohibits discrimination in the sale or rental of dwellings (as defined), discrimination in the financing or housing, blockbusting, and discriminatory advertising; and makes it unlawful to deny any person access to, or membership or participation in, any multiple listing service or real estate broker organization for discriminatory reasons.

P. Debarment and Suspension (2 CFR Part 200 App. II(H)) A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Contractor certifies that, to the best of its knowledge and belief, it and its principals are not presently debarred, suspended, proposed for debarment, declared 418
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ineligible, or voluntarily excluded from covered transactions by any Federal department or agency.

The Contractor agrees to include these regulations in any covered subcontracts.

Q. Byrd Anti-Lobbying Amendment (2 CFR Part 200 App. II(I)) Contractors that apply or bid for an award exceeding $100,000 must file the required certification under 31 U.S.C. 1352. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

To meet this certification requirement, the Contractor must sign the Certification Regarding Lobbying as Exhibit H.

R. Procurement of Recovered Materials (2 CFR Part 200 App. II(J); 2 CFR 200.323)
The Contractor must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. 6962. The requirements of Section 6002 include procuring only items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

The Contractor must, to the greatest extent practicable and consistent with law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled; contain recycled content, are biobased, or are energy and water-efficient; and are sustainable. This may include purchasing compostable items and other products and services that reduce the use of single-use plastic products. See Executive Order 14057, section 101, Policy.

S. Prohibition on certain telecommunications and video surveillance equipment or services. (2 CFR Part 200 App. II(K); 2 CFR 200.216) The Contractor must comply with the prohibition on certain telecommunications and video surveillance equipment or services stated in 2 CFR Part 200.216.

T. Remedies for Breach. (2 CFR Part 200 App. II(A))
If the value of this Agreement is more than $250,000 (the Simplified Acquisition Threshold amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition 419
14 Regulations Council as authorized by 41 U.S.C. section 1908), the following provision applies:

Remedies for Breach. In addition to all other remedies included in this Agreement, Contractor shall, at a minimum, be liable to the County for all foreseeable damages it incurs as a result of Contractor violation or breach of the terms of this Agreement. This includes without limitation any costs incurred to remediate defects in Contractor’s services and/or the additional expenses to complete Contractor’s services beyond the amounts agreed to in this Agreement, after Contractor has had a reasonable opportunity to remediate and/or complete its services as otherwise set for in this Agreement. All remedies provided for in this Agreement may be exercised individually or in combination with any other remedy available hereunder or under applicable laws, rules, and regulations. The exercise of any remedy shall not preclude or in any way be deemed to waive any other remedy.

U. Termination for Convenience or Cause. (2 CFR Part 200 App. II(B)) If the value of this Agreement is more than $10,000, the following provisions apply:

Termination for Convenience. The County shall have the option, in its sole discretion, to terminate this Agreement at any time for convenience and without cause. The County shall exercise this option by giving Contractor written notice of termination. The notice shall specify the date on which termination shall become effective. The County will pay Contractor for satisfactory Work rendered through the date of termination. In no event shall the County be liable for costs incurred by Contractor or any of its subcontractors after the termination date specified by the County, except for those costs reasonably necessary to effectuate demobilization or transition from the work. Final payment shall not be made to Contractor until Contractor closes out the Work.

Termination for Cause. On and after any event of default by Contractor, the County may immediately terminate this Agreement for cause. The County shall exercise this option by giving Contractor written notice of termination, and such termination shall take effect immediately, and the County will not be liable for costs incurred by Contractor or any of its subcontractors after that time. The County shall have the right to offset from any amounts due to Contractor under this Agreement or any other contract between the County and Contractor all damages, losses, costs or expenses incurred by the County as a result of such event of default and any liquidated damages due from Contractor pursuant to the terms of this Agreement. The County will pay Contractor for satisfactory work rendered through the date of termination, less any such offset.

V. Rights to Inventions Made Under a Contract or Agreement. (2 CFR Part 200 App. II(F))
If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2(a) and the County, Contractor, or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.
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NOTE: The above contract provisions are required by 2 CFR Part 200 and 24 CFR Section 570.502. Contractor assumes responsibility for complying with provisions required by those Parts not explicitly stated here.

FORMS, REPORTS, AND POLICY
Due to federal funding, this project has reporting requirements under Section 3 of the U.S. Department Housing and Urban Development Act of 1968 [12 U.S.C. 1701u and 24 CFR Part 75], which provides preference to low-to very low-income residents of the local community (regardless of race or gender), and the businesses that substantially employ these individuals, for new employment, training and contracting opportunities.

Required Section 3 Forms, Reports and Section 3 Plan
A Section 3 Plan Form and all applicable Section 3 requirements must be completed by bidders or applicants seeking funding for a Section 3 covered project. The Section 3 Plan and each applicable form provided outlined in Exhibit F must be submitted with the project bid or grant application.

Recordkeeping and Reporting Obligations

1. The Contractor must follow reporting requirements as established in 24 CFR Part

75.25 and recordkeeping requirements as established in 24 CFR Part 75.31.

Please Note: Please reference Exhibits F and G for information regarding the Section 3 requirements.
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16 Small and Disadvantaged Business
Enterprise (SDBE) Information
WHAT IS DBE?
Under the Women’s Business Enterprise and Minority Business Enterprise – Executive Orders 11625, 12138 and 12432, these regulations were established as a national priority.

DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION
If the contractor is unable to find qualified Minority Business Enterprises, Women Business Enterprises (MBEs/WBEs), or other relevant Enterprises (Small Businesses, Labor Surplus Area firms, or VeteranOwned Businesses) in the performance of the contract, it shall document the efforts it made to do so.

Documentation shall be retained in the contractor’s files for review by the County.

NOTE: Exhibits C and D must be signed by the person who will sign or has signed the Bid Form.

These forms are a listing of subcontractors that are planned to be a part of the project. If those subcontractors are unknown or none apply, the forms must still be completed. These forms will become a part of the contract documents.
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17 WAGE SHEET AND CLASSIFICATION REVIEW

REVIEW OF PROJECT WAGE SHEET
Important Note: Prior to the start of construction, all contractors are required to submit a Project Wage Sheet. This sheet will list all work classifications that the contractor will utilize to perform work under the contract. The form will also designate if the prevailing rate is a federal or state rate, list the basic hourly rate with the fringe benefit rate and the total of both. The Project Wage Sheet must be reviewed and approved by the project engineer with respect to the work classifications to be used for the construction phase of the project. Also, the Project Wage Sheet must be reviewed and approved by County staff with respect to the wage rates and fringe benefits rates that are to be paid for each work classification.

Please Note: Exhibit I must be completed by all contractors and subcontractors.

ADDITIONAL CLASSIFICATIONS
Any class of laborers or mechanics not listed in the initial wage determination shall be additionally classified in conformance with the wage determination. If additional classifications under the federal wage determinations are required, the Labor Compliance Officer will submit a "Report of
Additional Classifications and Rate" form, located online at:
(https://www.hud.gov/sites/dfiles/OCHCO/documents/4230AInstructions.pdf).

The County will forward the request to the HUD Area Office for submission and approval by the United States Department of Labor. A report on additional classification actions must be approved, modified or disapproved by the United States Department of Labor's Administrator of the Wage and Hour Division, Employment Standards Administration, within 30 days of receipt.

MINIMUM CRITERIA FOR ADDITIONAL CLASSIFICATION REQUESTS Additional classification will be approved only when the following criteria have been met:
a. The work to be performed by the classification requested is not performed by classification in the wage determination;
b. The classification is utilized in the area by the construction industry; and c. The proposed wage rate, including any bona fide fringe benefits, that has a reasonable relationship to the wage rates contained in the wage determination.

WAGE PAYMENT COMPLIANCE
Payroll records shall contain the employee’s full name and identifying number (last four digits of the social security number). The payroll records must also reflect correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, bona fide plans or programs for providing fringe benefits, written evidence of registered or certified apprentice or trainee programs, registration of apprentices or trainees and ratios, and wage rates prescribed in these programs.
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Signed weekly certified payrolls must be submitted for each week in which any contract work is performed.

The primary contractor is responsible for the submission of copies of payrolls by all subcontractors. Each payroll must be accompanied by a Statement of Compliance (with DavisBacon and Copeland Anti-Kickback Act provisions) signed by the contractor or subcontractor. If the signatory on the Statement of Compliance is not an officer of the contractor’s or subcontractor’s company, the chief executive officer must prepare a letter on company letterhead assigning signatory authority to another individual, such as a payroll officer, to sign on his/her behalf.

PAYMENT OF FRINGE BENEFITS
Whenever the minimum wage rates prescribed in the contract for a class of laborers or mechanics includes a fringe benefit that is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent.

Any payment of fringe benefits other than cash payment must be verified by the agency which received the payment. The contract file must contain a listing provided by the bona fide fringe benefit plan for each employee, verifying the payment made.

FAILURE TO PAY PREVAILING WAGES
In the event of a contractor's or subcontractor's failure to pay all or part of the wages required by the contract to any laborer or mechanic, including any apprentice or trainee, employed or working on the site of work or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project, the Grantee may after written notice to the contractor, sponsor, applicant or owner, take such action as may be necessary to cause the suspension of any further payment, advance or guarantee of funds until such violations have ceased.

FAILURE TO PAY OVERTIME COMPENSATION
In the event of violation of the overtime provision of the Contract Work Hours and Safety Standards Act, the contractor and any subcontractor responsible shall be liable for the unpaid wages and arty liquidated damages.

The County shall upon its own action or upon written request from the HUD withhold or cause to be withheld any money payable on account for work performed by the contractor or subcontractor. Also, money payable to the same contractor may be withheld from other federal contracts. This also applies to any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor. The amount of money withheld may be determined by the amount necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages.

DEBARMENT PROCEEDING
Whenever any contractor or subcontractor is found to be in aggravated or willful violation of the labor standards provisions of any applicable statutes or who have been found to have disregarded required obligations to employees under the Davis-Bacon Act, such contractors or subcontractors shall be ineligible to receive any federal contracts.

Please Review and Complete the Applicable Exhibits
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A1
Exhibit A
BABA Covered Materials and Manufactured Goods
Acknowledgement
The Contractor or subcontractor will need to insert a draft of Exhibit B of covered materials and manufactured goods (BABA Construction Materials List) for the construction work covered in the referenced project and must be initially submitted to the listed City and County at the start of construction and updated and submitted whenever new covered materials and manufactured goods are included for the project.

A final complete copy of the Materials List (Exhibit B) must be submitted with the final request for payment from the contractor/subcontractor.

Additional information and resources are provided at the following HUD BABA websites:
• https://www.hudexchange.info/programs/baba/.
• https://files.hudexchange.info/resources/documents/BABA-Quick-GuideCDBG.pdf • January 13, 2025, CPD Implementation Guidance for BABA at https://www.hud.gov/sites/dfiles/OCHCO/documents/cpd-25-01.pdf (Exhibit B)

A. HUD Construction Materials Group
HUD’s waiver breaks construction materials into two groups for the purposes of HUD’s phased implementation: “specially listed” and “all other construction materials.” Specifically Listed
• Metals other than iron or steel (non- ferrous metals) • Lumber
• Composite building materials
• Plastic and polymer-based pipe and tube (i.e., PVC pipe) All Other Construction Materials
• Glass
• Drywall
• Other construction materials
Manufactured Products
• A material or supply used in an infrastructure project that is not iron or steel or a construction material.
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A2
HUD General Waivers and project-specific waiver categories are specified categories are specified in 88 FR 17001. A contractor may request a project-specific waiver from the County, but waivers may take up to 90 days for final approval from both the County and HUD. The following are the current waivers in place:

Please Note: Should a contractor be interested in soliciting a waiver, please reach out to the Stanislaus County (further instructions will be given upon the request of the waiver).

Upon the request of the waiver, the contractor must submit in writing to Public Works an explanation of how the project is eligible for one of the current waivers in place as part of the project bid.

The County will review the submittal and provide a response of receipt within 10 business days and notification of acceptance or denial of request will be given within the 90-day time frame.

Intentionally Left Blank- Please Refer to pg. A3
Phased Implementation
Waiver published March
15, 2023, establishes a
phased implementation
Phased Implementation
schedule for application of
the BAP to HUD programs.
xigent Circumstances
BAP may be waived if
projects must be
completed immediately to
protect life, ensure safety,
or prevent the destruction
of property
ffective until ovember
23, 2027
, Small Grants, Minor Components
BAP waived for projects with a total cost of
250,000 or less
BAP waived for a de minimis portion that
comprises no more than 5
percent of the total cost of
covered materials used in
a project, up to 1 million
ffective until ovember
23, 2027
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A3
Instructions to Contractor/Subcontractor
Please complete the applicable section and information below pertaining to the project(s) in which this Material Acknowledgement references.

Stanislaus County Public Works Infrastructure Project or Urban County City Projects ☐ As the Prime Contractor and any subcontractor submitting this document on behalf of Stanislaus County Public Works, I the undersigned acknowledge that all documentation pertaining to the following project is true and correct to best of my knowledge.

Name of
Representative
Submitting Document:

Title of Representative:

Project Name:

Project Location:

Name of Contractor:

Name of
Subcontractor:

Funding Type:

Signature of
Representative: Date:
☐ As the Prime Contractor and any subcontractor submitting this document on behalf of the City of __________________, I the undersigned acknowledge that all documentation pertaining to the following project is true and correct to best of my knowledge.

Name of
Representative
Submitting Document:

Title of Representative:

Project Name:

Project Location:

Name of Contractor:

Name of
Subcontractor:

Funding Type:

Signature of
Representative: Date:
427
Grantee/Community:

Contractor/Subcontractor:

Contract/Project Number:

Grant Contact:

Grant Contact E-mail/Phone:

Type of Material or Good Manfacturer and Model Manufacturing Country of Origin Exhibit B
This list of covered materials and manufactured good for the above referenced project must be initially submitted to the listed grant contact at the start of construction and updated and submitted whenever new covered materials and manufactured goods are included for the project. A final complete copy of the list must be submitted with the final request for payment from the contractor/subcontractor.

BABA COVERED MATERIALS &

MANUFACTURED GOODS LIST
Stanislaus County Planning and Community Development Dept.

[email protected] / 209-525-6330
HUD Supplementatl General Conditions Documents
Attachment 3 - Build America, Buy America 2/4/2025)
428
Exhibit C
Disadvantaged Business Enterprise Participation
Division of Equal Opportunity Certified:

DBE ☐ Minority ☐ Women ☐ (Check Appropriate Designation) Description of Work:

Subcontractor Information
Contractor Name
$ ☐ DBE ☐ Minority ☐ Women
Estimated Dollar Value of Proposed Work Division of Equal Opportunity Certified Description of Work:

Subcontractor Information
Contractor Name
$ ☐ DBE ☐ Minority ☐ Women
Estimated Dollar Value of Proposed Work Division of Equal Opportunity Certified Description of Work:
429
Subcontractor Information
Contractor Name
$ ☐ DBE ☐ Minority ☐ Women
Estimated Dollar Value of Proposed Work Division of Equal Opportunity Certified Description of Work:

Subcontractor Information
Contractor Name
$ ☐ DBE ☐ Minority ☐ Women
Estimated Dollar Value of Proposed Work Division of Equal Opportunity Certified Description of Work:

TOTAL VALUE OF ALL DBE/MINORITY/WOMEN SUBCONTRACT WORK: $ __________________ ESTIMATED TOTAL PERCENT (%) TO BE UTILIZED: ____________ % Signature: _____________________________ Date: __________________________ Print Name:_____________________________ Title: ___________________________ 430
Exhibit D
Stanislaus County
Disadvantaged Business Enterprise Participation Certification Project No. Bid No. Contract No.

Contract/Project Name(s)
This is a formal certification that the below list of Disadvantage Business Enterprise Sub- Contractor(s) and amount(s) were utilized on the above project. This form is required at project completion.

DBE

SUB-CONTRACTOR

AMOUNT AMOUNT PAID
Signature Date
Name (Printed) Title
Send To: Stanislaus County
Department of Planning and Community Development
Attention: Deputy Director of Community Development
1010 10th Street, Suite 3400
Modesto, CA 95354
431
C1 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) Exhibit E
HUD-4010 U.S. Department of Housing and Urban
Development
Federal Labor Standards Provisions Office of Davis-Bacon and Labor Standards
A. APPLICABILITY
The Project or Program to which the construction work covered by this Contract pertains is being assisted by the United States of America, and the following Federal Labor Standards Provisions are
included in this Contract pursuant to the provisions applicable to such Federal assistance.

1. Minimum wages and fringe benefits
i. All laborers and mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. As provided in 29 CFR

5.5(d) and (e), the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract. Contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis-Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(v) of these contract clauses; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics must be paid the appropriate wage rate and fringe benefits on the wage determination for the classification(s) of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer’s payroll records accurately set forth the time spent in each classification in which work is performed.

The wage determination (including any additional classifications and wage rates conformed under 29 CFR 5.5(a)(1)(iii)) and the Davis-Bacon poster (WH-1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. ii. Frequently recurring classifications
A. In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f),
wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are regularly submitted pursuant to 29 CFR 5.5(a)(1)(iii), provided that:

1. The work performed by the classification is not performed by a classification in the wage determination for which a prevailing wage rate has been determined;

2. The classification is used in the area by the construction industry; and

3. The wage rate for the classification bears a reasonable relationship to the prevailing wage rates
contained in the wage determination.
432
C2 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) B. The Administrator will establish wage rates for such classifications in accordance with 29 CFR

5.5(a)(1)(iii)(A)(3). Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification.
iii. Conformance
A. The contracting officer must require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract be classified in conformance with the wage determination. Conformance of an additional classification and wage rate and fringe benefits is appropriate only when the following criteria have been met:

1. The work to be performed by the classification requested is not performed by a classification in the wage determination; and

2. The classification is used in the area by the construction industry; and

3. The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

B. The conformance process may not be used to split, subdivide, or otherwise avoid application of classifications listed in the wage determination.

C. If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to [email protected]. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.

D. In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer will, by email to [email protected], refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.

E. The contracting officer must promptly notify the contractor of the action taken by the Wage and Hour Division under 29 CFR 5.5 (a)(1)(iii)(C) and (D). The contractor must furnish a written copy of such determination to each affected worker or it must be posted as a part of the wage determination. The wage rate (including fringe benefits where appropriate) determined pursuant to 29 CFR 5.5 (a)(1)(iii)(C) or (D) must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. iv. Fringe benefits not expressed as an hourly rate
Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof. v. Unfunded plans
If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, in accordance with the criteria set forth in 29 CFR 5.28, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the 433
C3 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
vi. Interest In the event of a failure to pay all or part of the wages required by the contract, the contractor will be required to pay interest on any underpayment of wages.

2. Withholding
i. Withholding requirements
The U. S. Department of Housing and Urban Development may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in 29 CFR 5.5(a) for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis-Bacon labor standards, that is held by the same prime contractor (as defined in 29 CFR 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to Davis-Bacon labor standards requirements and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a contractor’s failure to pay any laborer or mechanic, including any apprentice or helper working on the site of the work (or otherwise working in construction or development of the project under a development statute) all or part of the wages required by the contract, or upon the contractor’s failure to submit the required records as discussed in 29 CFR 5.5(a)(3)(iv), HUD may on its own initiative and after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. ii. Priority to withheld funds
The Department has priority to funds withheld or to be withheld in accordance with 29 CFR

5.5(a)(2)(i) or (b)(3)(i), or both, over claims to those funds by:

A. A contractor’s surety(ies), including without limitation performance bond sureties and payment bond sureties;
B. A contracting agency for its reprocurement costs;
C. A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor’s bankruptcy estate; D. A contractor’s assignee(s);
E. A contractor’s successor(s); or
F. A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907.

3. Records and certified payrolls
i. Basic record requirements
A. Length of record retention. All regular payrolls and other basic records must be maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract is completed.

B. Information required Such records must contain the name; Social Security number; last known address, telephone number, and email address of each such worker; each worker’s correct classification(s) of work actually performed; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid. 434
C4 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) C. Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(v) that the wages of any laborer or mechanic include the amount of any
costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act, the contractor must maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

D. Additional records relating to apprenticeship Contractors with apprentices working under approved programs must maintain written evidence of the registration of apprenticeship programs, the registration of the apprentices, and the ratios and wage rates prescribed in the applicable programs.
ii. Certified payroll requirements
A. Frequency and method of submission The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Acts-covered work is performed, certified payrolls to HUD if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the certified payrolls to the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records, for transmission to HUD. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least 3 years after the work on the prime contract has been completed; and the contracting agency or prime contractor permits other methods of submission in situations where the contractor is unable or limited in its ability to use or access the electronic system B. Information required The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under 29 CFR

5.5(a)(3)(i)(B), except that full Social Security numbers and last known addresses, telephone numbers, and email addresses must not be included on weekly transmittals. Instead, the certified payrolls need only include an individually identifying number for each worker (e.g., the last four digits of the worker’s Social Security number). The required weekly certified payroll information may be submitted using Optional Form WH-347 or in any other format desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at https://www.dol.gov/ sites/dolgov/files/WHD/legacy/files/wh347.pdf or its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly submission by the subcontractor to the sponsoring government agency (or the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records).

E. Statement of Compliance Each certified payroll submitted must be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor, or the contractor’s or subcontractor’s agent who pays or supervises the payment of the persons working on the
contract, and must certify the following:

1. That the certified payroll for the payroll period contains the information required to be provided under 29 CFR 5.5(a)(3)(ii), the appropriate information and basic records are being maintained under 29 CFR 5.5 (a)(3)(i), and such information and records are correct and complete;
435
C5 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete)

2. That each laborer or mechanic (including each helper and apprentice) working on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR part 3; and

3. That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work actually performed, as specified in the applicable wage determination incorporated into the contract.

D. Use of Optional Form WH-347 The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 will satisfy the requirement for submission of the “Statement of Compliance” required by 29 CFR

5.5(a)(3)(ii)(C).

E. Signature The signature by the contractor, subcontractor, or the contractor’s or subcontractor’s agent must be an original handwritten signature or a legally valid electronic signature.

F. Falsification The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729.

G. Length of certified payroll retention The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed. iii. Contracts, subcontracts, and related documents The contractor or subcontractor must maintain this contract or subcontract and related documents including, without limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
iv. Required disclosures and access
A. Required record disclosures and access to workers The contractor or subcontractor must make the records required under 29 CFR 5.5(a)(3)(i)–(iii), and any other documents that HUD or the Department of Labor deems necessary to determine compliance with the labor standards provisions of any of the applicable statutes referenced by 29 CFR 5.1, available for inspection, copying, or transcription by authorized representatives of HUD or the Department of Labor, and must permit such representatives to interview workers during working hours on the job.

B. Sanctions for non-compliance with records and worker access requirements If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to 29 CFR 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available, to WHD within the time WHD requests that the records be produced will be precluded from introducing as evidence in an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the contractor or person for an extension of the time for submission of records. WHD will determine the reasonableness of the request and may consider, among other things, the location of the records and the volume of production. 436
C6 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) C. Required Information Disclosures Contractors and subcontractors must maintain the full Social Security number and last known address, telephone number, and email address each covered worker, and must provide them upon request to HUD if the agency is a party to the contract, or to the Wage and Hour Division of the Department of Labor. If the Federal agency is not such a party to the contract, the contractor, subcontractor, or both, must, upon request, provide the full Social Security number and last known address, telephone number, and email address of each covered worker to the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records, for transmission to HUD, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action.

4. Apprentices and equal employment opportunity
i. Apprentices
A. Rate of pay Apprentices will be permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S.

Department of Labor, Employment and Training Administration, Office of Apprenticeship (OA), or with a State Apprenticeship Agency recognized by the OA.

A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State Apprenticeship Agency recognized by the OA withdraws approval of an apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

B. Fringe benefits Apprentices must be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that determination.

C. Apprenticeship ratio The allowable ratio of apprentices to journey workers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to 29 CFR 5.5(a)(4)(i)(D). Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in 29 CFR 5.5(a)(4)(i)(A), must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage determination for the work actually performed.

D. Reciprocity of ratios and wage rates Where a contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in percentages of the journey worker’s hourly rate) applicable within the locality in which the construction is being performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor’s registered program must be observed.
ii. Equal employment opportunity The use of apprentices and journey workers under this part must be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
437
C7 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete)

5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract.

6. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (11), along with the applicable wage determination(s) and such other clauses or contract modifications as the U.S. Department of Housing and Urban Development may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage determination(s) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and may be subject to debarment, as appropriate.

7. Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.

8. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract.

9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S.

Department of Labor, or the employees or their representatives.

10. Certification of eligibility.
i. By entering into this contract, the contractor certifies that neither it nor any person or firm who has an interest in the contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of 40 U.S.C. 3144(b) or 29 CFR 5.12(a). ii. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of 40 U.S.C. 3144(b) or 29 CFR 5.12(a). iii.The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal Procedure, 18 U.S.C. 1001.

11. Anti-retaliation It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
i. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; ii. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; iii. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; or iv. Informing any other person about their rights under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5.

B. Contract Work Hours and Safety Standards Act (CWHSSA) The Agency Head must cause or require the contracting officer to insert the following clauses set forth in 29 CFR 5.5(b)(1), (2), (3), (4), and (5) in full, or (for contracts covered by the Federal Acquisition Regulation) by reference, in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses must
438
C8 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) be inserted in addition to the clauses required by 29 CFR 5.5(a) or 4.6. As used in this paragraph, the terms “laborers and mechanics” include watchpersons and guards.

1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.

2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in 29 CFR 5.5(b)(1) the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the underpayment. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchpersons and guards, employed in violation of the clause set forth in 29 CFR 5.5(b)(1), in the sum of $31 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in 29 CFR 5.5(b)(1).

3. Withholding for unpaid wages and liquidated damages
i. Withholding process The U.S Department of Housing and Urban Development or the recipient of Federal assistance may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages; monetary relief, including interest; and liquidated damages required by the clauses set forth in 29 CFR 5.5(b) on this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in 29 CFR 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. ii Priority to withheld funds The Department has priority to funds withheld or to be withheld in accordance with 29 CFR 5.5(a)(2)(i) or (b)(3)(i), or both, over claims to those funds by:

A. A contractor’s surety(ies), including without limitation performance bond sureties and payment bond sureties;
B. A contracting agency for its reprocurement costs;
C. A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor’s bankruptcy estate;
D. A contractor’s assignee(s);
E. A contractor’s successor(s); or
F. A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907.

4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in 29 CFR 5.5(b)(1) through (5) and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in 29 CFR 5.5(b)(1) through (5). In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss,
439
C9 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) due to any workers of lower-tier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate.

5. Anti-retaliation It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
i. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing regulations in 29 CFR part 5;
ii. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or 29 CFR part 5;
iii. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or 29 CFR part 5; or
iv. Informing any other person about their rights under CWHSSA or 29 CFR part 5.

C. CWHSSA required records clause In addition to the clauses contained in 29 CFR 5.5(b), in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other laws referenced by 29 CFR 5.1, the Agency Head must cause or require the contracting officer to insert a clause requiring that the contractor or subcontractor must maintain regular payrolls and other basic records during the course of the work and must preserve them for a period of 3 years after all the work on the prime contract is completed for all laborers and mechanics, including guards and watchpersons, working on the contract. Such records must contain the name; last known address, telephone number, and email address; and social security number of each such worker; each worker’s correct classification(s) of work actually performed; hourly rates of wages paid; daily and weekly number of hours actually worked; deductions made and actual wages paid. Further, the Agency Head must cause or require the contracting officer to insert in any such contract a clause providing that the records to be maintained under this paragraph must be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview workers during working hours on the job.

D. Incorporation of contract clauses and wage determinations by reference Although agencies are required to insert the contract clauses set forth in this section, along with appropriate wage determinations, in full into covered contracts, and contractors and subcontractors are required to insert them in any lower-tier subcontracts, the incorporation by reference of the required contract clauses and appropriate wage determinations will be given the same force and effect as if they were inserted in full text.

E. Incorporation by operation of law The contract clauses set forth in this section (or their equivalent under the Federal Acquisition Regulation), along with the correct wage determinations, will be considered to be a part of every prime contract required by the applicable statutes referenced by 29 CFR 5.1 to include such clauses, and will be effective by operation of law, whether or not they are included or incorporated by reference into such contract, unless the Administrator grants a variance, tolerance, or exemption from the application of this paragraph.

Where the clauses and applicable wage determinations are effective by operation of law under this paragraph, the prime contractor must be compensated for any resulting increase in wages in accordance with applicable law.

F. HEALTH AND SAFETY
The provisions of this paragraph (F) are applicable where the amount of the prime contract exceeds $100,000.

1. No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his or her health and safety, as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation.

2. The contractor shall comply with all regulations issued by the Secretary of Labor pursuant to 29 CFR Part 1926 and failure to comply may result in imposition of sanctions pursuant to the 440
C10 Form HUD-4010 (10/2023) – Ref. Handbook 1344.1- Previous Editions (Obsolete) Contract Work Hours and Safety Standards Act, (Public Law 91-54, 83 Stat 96), 40 U.S.C. § 3701 et seq.

3. The contractor shall include the provisions of this paragraph in every subcontract, so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. 441
F1 Section 3 Regulations & Documents
Exhibit F
Section 3 Supplemental Information
I. INTRODUCTION AND PURPOSE
Title 24 CFR Part 75: Economic Opportunity for Low- and Very Low-Income Persons, is the statutory repository for the U.S. Housing and Urban Development’s (HUD) Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u). Section 3 of the Housing and Urban Development Act of 1968 recognizes that federal financial assistance can also become a tool to expand economic opportunities for low- and very low-income families and businesses of the neighborhoods and communities where HUD invests public resources.

As a recipient of federal funds, the Community Development Block Grant (CDBG) program and its sub-recipients (grantees) shall comply with Section 3 requirements set forth at 24 CFR 75 of the federal regulation which states that, to the greatest extent possible, businesses and employers working on HUD-funded projects must make a good faith effort to train and employ low-income individuals living in the local area and also to contract with businesses owned by or that employ Section 3 workers.

Section 3 requirements apply to grantees that plan to obligate or commit an aggregate amount of $200,000 or more in CDBG assistance to projects involving infrastructure during a given annual reporting period (calendar year). The $200,000 funding threshold is comprised of the combined expenditure of all funding sources set forth in 24 CFR 135.5.

II. GLOSSARY OF TERMS AND DEFINITIONS | 24 CFR § 75.5
Contractor means any entity entering into a contract with:

1. A recipient to perform work in connection with the expenditure for work in connection with a Section 3 project; or

2. A subrecipient for work in connection with a Section 3 project.

Labor hours mean the number of paid hours worked by persons on a Section 3 project.

Low-income and very low-income person(s) means Low- and very low-income limits are defined in Section 3(b)(2) of the Housing Act of 1937 and are determined annually by HUD. These limits are typically established at 80 percent and 50 percent of the area median individual income. HUD income limits may be obtained from:
https://www.huduser.gov/portal/datasets/il.html.

Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.
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F2 Section 3 Regulations & Documents
Professional services1 mean non-construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, financial consulting, accounting services, environmental assessment, architectural services, and civil engineering services.

Recipient means any entity that receives directly from HUD housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, or other public agency, public or private nonprofit organization.

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:

1. A business concern meeting at least one of the following criteria, documented within the last six-month period:
a. It is at least 51 percent owned and controlled by low- or very low-income persons;
b. Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers; or c. It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

2. The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.

3. Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications of the contract.

Section 3 project means a housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. The requirements of Part 75 apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance. 1 In the final rule, HUD amended the professional services definition to clarify that only non-construction services that require an advanced degree or professional licensing, rather than all non-construction services, are excluded from Section 3. HUD wants to ensure this final rule's emphasis the statutory requirement to prioritize low- and very low-income workers and provides this category of exempted workers from reporting given the challenge to hire low- and very low-income workers in jobs that require such degrees and licensing.
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F3 Section 3 Regulations & Documents
Section 3 worker means:

1. Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:
a. The worker's income for the previous or annualized calendar year is below the income limit established by HUD.
b. The worker is employed by a Section 3 business concern. c. The worker is a YouthBuild participant.

2. The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.

3. Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.

Section 8-assisted housing refers to housing receiving project-based rental assistance or tenant-based assistance under Section 8 of the 1937 Act. Service area or the neighborhood of the project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.

Small Public Housing Authority (PHA) means a public housing authority that manages or operates fewer than 250 public housing units.

Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of public housing financial assistance or for a Section 3 project.

Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.

Targeted Section 3 worker has the meanings provided in §§ 75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.

YouthBuild programs refers to YouthBuild programs receiving assistance under a community-based pre-apprenticeship program that provides job training and educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.

YouthBuild participants learn vocational skills in construction, as well as in other indemand industries that include health care, information technology, and hospitality. Youth also provide community service through the required construction or rehabilitation of affordable housing for low-income or homeless families in their own neighborhoods.

III. SECTION 3 THRESHOLDS AND APPLICABILITY | 24 CFR § 75.3 Threshold: Housing and Community Development Financial Assistance.

Section 3 Community Development Block Grant (CDBG) projects such as infrastructure or other public construction projects assisted under HUD programs that provide housing 444
F4 Section 3 Regulations & Documents
and community development financial assistance when the total amount of assistance to the project exceeds $200,000 of housing and community development financial assistance. The project is defined as the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.
• Dollar-Thresholds: Section 3 applies when these thresholds are met:
o The grant administering entity receives more than $200,000 in grant funds and invests any amount of these funds to carry out a CDBG activity (including demolition and lead-based paint abatement). The administering entity includes the grantee, as well as any subrecipient (unit of local government) or subrecipient (nonprofit organization) that receives over $200,000.
o A contractor/subcontractor of a project receives a contract for $100,000 or more in grant assistance.

Once it is determined that Section 3 applies to a project, the Section 3 requirements apply to all contracts, provided that at least $1 of grant funds is being used. If the grant administering agency receives more than $200,000 in grant funds, but no single contractor is awarded more than $100,000, then the Section 3 requirements apply to the training, employment, and contracting activities of the grantee, or subrecipient but not to those of the contractor(s) of the project. This means new hiring and contracting opportunities generated by the grantee, subrecipient that is related to work arising in connection with the HUD-assisted new construction or rehabilitation project would be subject to the Section 3 hiring and contracting goals.

Applicability: Housing and Community Development Financial Assistance.

Section 3 applies to:
• Section 3 projects, as described above under Thresholds o Section 3 requirements apply to an entire project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance
Section 3 requirements do not apply to:
• Material Supply Contracts - § 75.3(b)
• Indian and Tribal Preferences - § 75.3(c)
o Contracts, subcontracts, grants, or subgrants subject to Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5307(b)) or subject to tribal preference requirements as authorized under 101(k) of the Native American Housing Assistance and Self-Determination Act (25 U.S.C. 4111(k)) must provide preferences in employment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to Section 3 requirements
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• Other HUD assistance and other federal assistance - § 75.3(d) o Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3

IV. INTENDED BENEFICIARIES
Section 3 Workers | 24 CFR 75.5
Section 3 requires that recipients of certain HUD funding make best efforts to provide “Section 3 workers” with employment and training opportunities arising in connection to a Section 3 project. The final rule defines “Section 3 workers” as any worker who currently fits, or when hired fit, at least one of the following categories, as documented within the past five years:

1. The worker’s income for the previous or annualized calendar year is below the income limit established by HUD

2. The worker is employed by a Section 3 business concern

3. The worker is a YouthBuild participant
Targeted Section 3 Workers | 24 CFR § 75.5
The final rule also defines “Targeted Section 3 worker” to implement the statutory requirement that recipients or contractors prioritize Section 3 workers in these selected categories for employment and training opportunities and to allow HUD to track these efforts.

For housing and community development financial assistance programs, a Targeted Section 3 worker is a Section 3 worker who is also:
• A worker employed by a Section 3 business concern; or • A worker who currently fits, or when hired fit, at least one of the following categories, as documented within the past five years:
o Living within one mile of the service area or the neighborhood of the project;  If fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.
• A YouthBuild participant
Section 3 Business Concerns | 24 CFR § 75.5
The final rule requires that when feasible, recipients must make best efforts to direct contracts for work arising in connection with Section 3 project to “Section 3 business concerns”. The final rule includes a revised definition of “Section 3 business concerns” that reflects the change from counting new hires to counting labor hours and increases the threshold of work performed by a business’ low- and very low-income workers. The final rule also includes all Section 3 business concerns’ labor hours in the definition of both Section 3 workers and Targeted Section 3 workers.

Section 3 business concerns are businesses that meet at least one of the following criteria, documented within the last six-month period:
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F6 Section 3 Regulations & Documents
• At least 51 percent owned and controlled by low- or very low-income persons; • Over 75 percent of the labor hours performed for the business over the prior threemonth period are performed by Section 3 workers; or • A business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

V. PRIORITIZATION REQUIREMENTS FOR HOUSING AND COMMUNITY

DEVELOPMENT FINANCIAL ASSISTANCE
Employment and Training | 24 CFR § 75.19
To the greatest extent feasible, recipients of housing and community development financial assistance shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the County project area (or City area) in which the project is located in the following order of priority:

1. Section 3 workers residing within the service area or the neighborhood of the project

2. Participants in YouthBuild programs
Contracting | 24 CFR § 75.19
To the greatest extent feasible recipients of housing and community development financial assistance shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the County project area (or City area) in which the project is located in the following order of priority:

1. Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project

2. YouthBuild programs
VI. BENCHMARKS AND SAFE HARBOR - HOUSING AND COMMUNITY
DEVELOPMENT FINANCIAL ASSISTANCE FOR CDBG PROJECTS | 24 CFR § 75.23 For meeting the safe harbor in § 75.23, recipients that certify to following the prioritization in § 75.19 and meet or exceed the following Section 3 benchmarks will be considered to have complied with Section 3 requirements, absent evidence to the contrary:

1. 25 percent or more of the total number of labor hours worked by all workers on a Section 3 project are Section 3 workers; and

2. 5 percent or more of the total number of labor hours worked by all workers on a Section 3 project are Targeted Section 3 workers.

All Sub-recipients are required to report all labor hours.

The benchmark goal for Section 3 workers is set at 25 percent or more of the total number of labor hours worked by all workers on a Section 3 project.

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F7 Section 3 Regulations & Documents
Section 3 Workers Labor Hours / Total Labor Hours= 25%
The benchmark goal for Targeted Section 3 workers is set at 5 percent or more of the total number of labor hours worked by all workers on a Section 3 project. This means that the 5 percent is included as part of the 25 percent threshold.

Targeted Section 3 Labor Hours / Total Labor Hours = 5% The chart below is an example of the order of preference:

SECTION 3 WORKER TRACKING AND REPORTING
All Sub-recipients, contractors and sub-contractors are required to comply with the reporting requirements set for at 24 CFR 75.25. Where Targeted Section 3 and Section 3 Workers are currently employed or new hires, the Sub-recipients must track those labor hours performed by those workers. In conjunction with the Davis-Bacon payroll requirement, Sub-recipients will utilize the Section 3 tracking form for this purpose and submitted with each payroll submission.

Qualitative Reporting | 24 CFR § 75.15 and 24 CFR § 75.25 Section 3 recipients will be considered to have complied with the Section 3 requirements and met the safe harbor, in the absence of evidence to the contrary, if they certify that they have followed the required prioritization of qualitative effort and met or exceeded the applicable Section 3 benchmarks. Such qualitative efforts may, for example, include but are not limited to the following:
• Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers
• Provided training or apprenticeship opportunities
• Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching)
All Workers
All Section
Workers
Targeted Section
3 Workers
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F8 Section 3 Regulations & Documents
• Provided or connected Section 3 workers with assistance in seeking employment including: drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job placement services
• Held one or more job fairs
• Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, childcare)
• Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technical training • Assisted Section 3 workers to obtain financial literacy training and/or coaching • Engaged in outreach efforts to identify and secure bids from Section 3 business concerns
• Provided technical assistance to help Section 3 business concerns understand and bid on contracts
• Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns
• Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns
• Promoted use of business registries designed to create opportunities for disadvantaged and small businesses
• Outreach, engagement, or referrals with the state one-stop system as defined in Section 121(e)(2) of the Workforce Innovation and Opportunity Act VII. REPORTING ON HOUSING AND COMMUNITY DEVELOPMENT FINANACIAL ASSISTANCE FOR CDBG PROJECTS | 24 CFR § 75.25
For Section 3 projects, recipients must report the following data annually to HUD on all CDBG projects completed within the reporting year and in a manner consistent with reporting requirements for the applicable HUD program:

1. The total number of labor hours worked

2. The total number of labor hours worked by Section 3 workers

3. The total number of labor hours worked by Targeted Section 3 workers The labor hours reported must include the total number of labor hours worked on a Section 3 project by all workers, including labor hours worked by any subrecipients, contractors, and subcontractors that the recipient is required to, or elects to, report.

Professional Services: Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers and labor hours by Targeted Section 3 workers from professional services without including labor hours from professional services in the total number of labor hours worked. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported.
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F9 Section 3 Regulations & Documents
Good Faith Assessment: Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer’s good faith assessment of the labor hours of a full-time or part-time employee informed by the employer’s existing salary or time and attendance-based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.

Qualitative Reporting: If the recipient’s reporting indicates that the recipient has not met the Section 3 benchmarks, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued (see section above).

VIII. CONTRACT PROVISIONS | 24 CFR § 75.27
Recipients must include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project. They must also require subrecipients, contractors, and subcontractors to meet the prioritization requirements of § 75.19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.

IX. SECTION 3 AND TARGETED SECTION 3 WORKERS AND BUSINESS CONCERNS

CERTIFICATION
Section 3 Worker and Certification
The Sub-recipient will utilize the Section 3 Certification Form to document the status of a Section 3 worker. The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction. Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled. (Exhibit ?) Targeted Section 3 Worker and Certification
The Sub-recipient will utilize the Targeted Section 3 Certification Form to document the status of a Targeted Section 3 worker. The status of a Targeted Section 3 worker shall not be negatively affected by a prior arrest or conviction. Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker.

Section 3 workers are not exempt from meeting the qualifications of the position to be filled. (Exhibit ?)
Section 3 Business Concerns Certification
In accordance with the regulation, residents and businesses concerns seeking Section 3 preference shall certify, or submit evidence to the recipient, contractor, subcontractor or subrecipient (if requested) verifying that they meet the definitions provided above. (Exhibit ?)
Sub-recipients can use their discretion for determining the type of verification that is required by prospective Section 3 workers and business concerns. Some examples include proof of residency in a public housing authority; proof of federal subsidies for housing, food stamps, or unemployment benefits; and payroll data or other relevant business information.
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F10 Section 3 Regulations & Documents
As provided in 2 CFR 200.318, contract awards shall only be made to responsible contractors possessing the ability to perform under the terms and conditions of the proposed contract.

Qualifying as a Section 3 businesses does not mean that the business will be selected if it meets the technical requirements of the bid, regardless of bid price.

X. SUB-RECIPIENT REQUIREMENTS
Sub-recipients are required to ensure their own compliance and the compliance of their contractors/subcontractors with the Section 3 regulations, as outlined at 24 CFR part 75.

These responsibilities include but are not limited to the following:

1. Designing and implementing procedures to comply with the requirements of Section 3: The Sub-recipient must take an active role in ensuring Section 3 compliance. The first step is implementing procedures to ensure that all parties, including residents, businesses, contractors, and subcontractors, comply with Section 3 and maintain records verifying that compliance.

2. Facilitating the training and employment of Section 3 workers: The Subrecipient must act as a facilitator, connecting Section 3 workers to training and employment opportunities.

3. Facilitating the award of contracts to Section 3 business concerns: The Subrecipient must also work to link developers and contractors with capable Section 3 business concerns. Additionally, recipient agencies, when necessary, may direct Section 3 business concerns to organizations that provide capacity-building training.

4. Ensuring Contractor and Subcontractor Awareness of and Compliance with Section 3 Benchmarks and responsibilities: The Sub-recipient is responsible for ensuring that contractors and subcontractors are aware of, and in compliance with, Section 3 requirements.

5. Ensuring Compliance and Meeting Numerical Benchmarks: The Sub-recipient shall ensure compliance with Section 3 by assessing the hiring and subcontracting needs of contractors; regularly monitoring contractor compliance; assisting and actively cooperating with the Secretary of HUD in obtaining the compliance of contractors; penalizing non-compliance; providing incentives for good performance; and refraining from entering into contracts with any contractor that previously failed to comply with the requirements of Section 3.

6. Reporting Requirements: The Sub-recipient must document all actions taken to comply with the requirements of Section 3 and report these activities as determined by the funding agency.
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XI. SECTION 3 CONTRACTOR’S REQUIREMENTS
The Prime Contractor must submit a Section 3 plan to the Sub-Recipient outlining Section 3 hiring and employment opportunities.

The Prime Contractor must notify all sub-contractors of their responsibilities under Section

3. The Prime Contractor must provide a permanent workforce breakdown of all current employees and identify those Section 3 workers that were hired within the last five years (see form below).

The Prime Contractor must provide an estimated breakdown of potential hires for the awarded project and timeline of anticipated hiring (see form below).

The Prime Contractor must refrain from contracting with sub-contractors as to whom they have received notice or have knowledge that the sub-contractors have been found in violation of the regulations in 24 § CFR 75.

Maintain records that document a good faith effort to utilize Section 3 workers and Target Section 3 workers as trainees and employees. (Required of both contractor and subcontractor.) and any other qualitative efforts mentioned above to comply with Section 3.

Recordkeeping requirements for recipients are found at 24 CFR § 75.31. The contractor is required to maintain documentation to demonstrate compliance with the regulations and is responsible for requiring their subcontractors to maintain or provide any documentation that will assist recipients in demonstrating compliance, including documentation that shows hours worked by Section 3 workers and Targeted Section 3 workers.

XII. SECTION 3 REPORTING [24 CFR § 75.25]
Reporting of Labor Hours.

1. For Section 3 projects, Sub-recipients must report:
a. The total number of labor hours worked;
b. The total number of labor hours worked by Section 3 workers; and c. The total number of labor hours worked by Targeted Section 3 workers.

2. Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to § 75.31.

3. The labor hours reported under paragraph (a)(1) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section, to report. 452
F12 Section 3 Regulations & Documents

4. Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the total number of labor hours worked under paragraph (a)(1)(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported.

5. Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full-time or part-time employee informed by the employer's existing salary or time and attendance-based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.

Professional Services: The reporting structure in the final rule allows a Sub-recipient to count as Section 3 labor hours and as Targeted Section 3 labor hours any work performed by a Section 3 worker or a Targeted Section 3 worker (i.e., in the numerator of the calculation), even when the professional services as a whole are not counted in the baseline reporting (i.e., in the denominator of the calculation). The effect of this reporting structure is to give a recipient a bonus if they are able to report Section 3 hires in the professional services context.
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SECTION 3 WORKER TRACKING AND REPORTING
All Sub-recipients, contractors and sub-contractors are required to comply with the reporting requirements set for at 24 CFR 75.25. Where Targeted Section 3 and Section 3 Workers are currently employed or new hires, the Sub-recipients must track those labor hours performed by those workers. In conjunction with the Davis-Bacon payroll requirement, Sub-recipients will utilize the Section 3 tracking form for this purpose and submitted with each payroll submission.

Annual Section 3 Reporting Form
All Sub-Recipients must comply with the Section 3 Reporting requirements per 24 § CFR 75. Subrecipients must submit to Stanislaus County all labor hours worked by Targeted Section 3 and Section 3 Workers for the reporting period of October 1st through September 30th of each year.

All Section 3 labors hours are due to Stanislaus County by October 31st following the ending reporting period. Where benchmark goals were not met, the sub-recipient must document their good faith effort to comply with Section 3.

Project Close-Out Requirement
All Sub-recipients are required to provide a final Section 3 labor report at Close-out. The CDBG close-out package has been revised that includes the Section 3 Reporting form. The Sub-recipient must report the total cumulative labor hours to reflect benchmark goals. Sub-recipients who fail to submit the proper close-out will be considered incomplete and may delay final request for cash processing until compliance with the Section 3 reporting has been satisfied.

XIII. RECORDKEEPING [24 CFR 75.31]
HUD and Stanislaus County Planning and Community Development shall have access to all records, reports, and other documents or items of the Sub-recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed.

Sub-recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period.

IV. COMPLIANCE [75.33]
Records of compliance.

Each sub-recipient, contractor and subcontractor shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200.

Complaints.

Complaints alleging failure of compliance with this part may be reported to the HUD program office responsible for the public housing financial assistance or the Section 3 project, or to the local HUD field office.
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STANISLAUS COUNTY SECTION 3 PROCEDURES
As a recipient of U.S. Department of Housing and Urban Development (HUD) CDBG, HOME and other federal funds governed by Section 3 of the Housing and Urban Development Act of 1968, Stanislaus County is dedicated to contracting with Section 3 contractors to the greatest extent possible. Subsequently, the County is also dedicated to the utilization of MBE/WBE concerns.

SUBRECIPIENTS AND SECTION 3 REQUIREMENTS FOR COVERED CONTRACTS Stanislaus County shall insure that all sub-recipients are aware of the Section 3 requirements for all covered contracts that are bid and/or awarded during each fiscal year. This procedure will be carried out through two (2) specific activities associated with projects.

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 developments covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons including persons who are recipients of HUD assistance for housing, with preference for both targeted workers living in the service area or neighborhood of the Development and Youthbuild participants, as defined at the final for 24 CFR Part 75 (“Section 3 Regulations”).

B. The Parties agree to comply with HUD's regulations in Section 3 Regulations, which implement Section 3. As evidenced by their execution of this Contract, the Parties certify that they are under no contractual or other impediment that would prevent them from complying with the Section 3 Regulations.

C. The Contractor agrees to send to each labor organization or representative or 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 the following: (i) minimum number and job titles subject to hire, (ii) availability of apprenticeship and training positions, (iii) qualifications for each, (iv) name and location of the person(s) taking applications for each of the positions, and (v) 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 Section 3 Regulations 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 Section 3 Regulations. 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 Section 3 Regulations.

E. The Contractor will certify that any vacant employment positions, including training positions, that are filled (i) after a contractor is selected but before the contract is executed, and (ii) with persons other than those to whom the regulations of Section 3 Regulations require employment 455
F15 Section 3 Regulations & Documents
opportunities to be directed, were not filled to circumvent the Contractor’s obligations under Section 3 Regulations.

F. Noncompliance with HUD's regulations in Section 3 Regulations may result in sanctions, termination of this Contract for default, and debarment or suspension from future HUD assisted contracts.

Section 3 Businesses (as defined by Section 3 Regulations) are encouraged to respond to this proposal.

Businesses that believe they meet the Section 3 criteria are encouraged to register as a Section 3 Business through HUD’s website: https://www.hudexchange.info/programs/section-3/resource-hub/businessowners/ Sample Section 3 Business and Employment Notice
[Instructions: Publish as a display advertisement in the local paper’s non-legal section or post at the local government and other Section 3 area locations.] (Insert local government name) is preparing to carry out the (insert Name of Project) with Community Development Block Grant (CDBG) funds. In the implementation of this project the following job types may be available:
(Insert List of Job Classifications to be used during project) All job openings will be posted at (local government office or list other posting locations). To the greatest extent feasible, employment and training positions will be made available to qualified persons who permanently reside in (Insert the County’s or local municipality name as Section 3 area). Persons qualified for the jobs listed should register at the following location:
(Insert Name and Address of posting locations and/or Other Locations) Additionally, the following contracts and procurements will/may be made and to the greatest extent feasible, businesses located in and owned by persons residing in (Insert the County’s name as Section 3 area) will be utilized:
(Insert list of construction, non-construction, and service contracts to be procured during the project. Also, insert list of construction subcontracts, major, specific equipment, and general types of materials to be used during the project.)
All above-referenced procurements will be made on a competitive basis. The names of businesses who respond to this notice will be included on procurement lists for this project. Names of job seekers will be given to contractors.

Any person residing or firm located in the above-named areas may request to participate in procurement opportunities associated with this project by contacting (Insert local government contact information) within ten (10) days of this notice. 456
F16 Section 3 Regulations & Documents
CONTRACTOR SECTION 3 PLAN
(Name of contractor) agrees to implement affirmative steps to comply with the Section 3 requirements set forth at 24 CFR 75 directed at increasing the utilization of lower income residents and businesses within the City or County of ________________________________.

A. To implement Section 3 requirements by seeking the assistance of local officials in determining the exact boundaries of the applicable project area.

B. To attempt to recruit from within the City/County the necessary number of lower income residents through local advertising media, signs placed at the proposed site for the project, and community organizations and public or private institutions operating within or serving the project area.

C. To maintain a list of all lower income residents who have applied either on their own or on referral from any source, and to employ such persons, if otherwise eligible and if a vacancy exits.

D. To insert this Section 3 plan in all bid documents, and to require all subcontract bidders to submit a Section 3 action plans (if subcontract is over $200,000) including utilization goals and the specific steps planned to accomplish these goals.

E. To ensure that all appropriate project area business concerns are notified of pending subcontractual opportunities.

F. To maintain records, including copies of correspondence, memoranda, etc., which document that all the above affirmative action steps have been taken.

G. To appoint or recruit an executive official of the company or agency as Equal Opportunity Officer to coordinate the implementation of this Section 3 plan.

H. To list and provide all permanent workforce for this project by job title.

I. To list and provide all projected workforce needs for this project by job classification and time frame for potential hire.

J. To ensure subcontractors comply with Section 3.

K. To provide to the City/County the necessary labor hour reports and support documentation.

As officers and representatives of ____________________We, the undersigned, have read and fully agree to the above and become a party to the full implementation of this program. _______________________________________ _____________________ Title Date
_________________________________________
Signature
457
F17 Section 3 Regulations & Documents
TARGETED SECTION 3 AND SECTION 3 WORKER TRACKING FORM
*This form must be submitted with each weekly payroll.

Name of Contractor/ Subcontractor
Contact Name
Daytime Phone Number & Email
Project Name & Project No.

Report Period
Name of Employee
Individual Identifying No. (e.g. last 4
digits of SS no.)
Worker
Classification
Targeted
Section 3
Workers
Section 3
Workers
Labor Hours
Worked
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Yes ☐ No ☐ Yes ☐ No ☐
Signature: Date Signed:

Print Name: Title:
458
F18 Section 3 Regulations & Documents

CONTRACTOR PERMANENT WORKFORCE FORM
This form is used to determine the Section 3 Workers already employed by the bidding contractor.

This form may be compared to Davis -Bacon Payrolls for cross referencing purposes.

Project Name: Name of Contractor:

Address: Date:

Employee Name
Job Title /
Worker
Classification
Certified
Section 3
Worker
Monthly Salary
Salary Below
80%of Median
Household
Income
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
Yes ☐ No ☐ $ Yes ☐ No ☐
I certify the above employees are permanent employees of ___________________________. I certify the above employees are on our regular monthly payroll and have their W-2 tax forms for our records. These records will be available to the city/county for the above referenced project for verification purposes. I understand that falsifying information is perjury and subject to legal ramifications.

Print Name: Signature: Date:
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F19 Section 3 Regulations & Documents
SECTION 3 CONTRACTOR ESTIMATED PROJECT WORKFORCE BREAKDOWN *This form may be used to determine future hiring needs by the contractor.

Project Name: Name of Contractor:

Address: Date:

Job Category Total Estimated
Positions
No. of Persons
Currently
Occupied by
Permanent
Employees
No. of Vacant
Positions
No. of Positions to be
Filled with
Targeted and/or
Section 3 Workers
and Estimate of
Hire Date. (ex. 2 –
5/1/25)
Officials and
Managers
Professionals
Technicians
Office and
Clerical
Sales
Craft Workers
(Skilled)
Operatives
(Semi-Skilled)
Laborers
(Unskilled)
Apprentices
Service Workers
Others
Total
Print Name: Signature: Date:
460
F20 Section 3 Regulations & Documents
SECTION 3 BUSINESS SELF-CERTIFICATION FORM
To self-certify as a Section 3 Business your company/firm per 24 CFR 75, must meet one of the listed categories below. You must provide that supporting documentation with this form to be properly and completely confirmed as a Section 3 business.

Section 3 Business Category Additional Required Data
Mark an
“X” on
Your
Election
It is at least 51% owned by lowor very low-income persons; Proof of ownerships showing all owners and their percentages and a completed Section 3
Individual Self-Certification form for all low-and
very low-income owners.
☐
Over 75% of the labor hours
performed for the business are
performed by low- or very lowincome persons; or
Provide the last 90 days full payrolls for the
entire company, make a list of the names from
the payrolls of the Section 3 workers, and
provide a completed Section 3 Individual SelfCertification for all low- and very low-income workers you list.
☐
It is a business at least 51%
owned by current public
housing residents or residents
who currently live in Section 8-
assisted housing.

Proof of ownership showing all owners and their
percentages and a Section 3 Individual SelfCertification form for all public housing and/or Section 8 owners.
☐
I hereby certify to the US Department of Housing and Urban Development (HUD) that all the information on this form is true and correct. I attest under penalty of perjury that my business meets the elected definition and understand proof of this information may be requested. If found to be inaccurate, I understand that I may be disqualified as a certified Section 3 business.

Signature: Date Signed:

Print Name: Title:

Company Name:

Type of Business (check one): Corporation ☐ Partnership ☐ Sole Proprietorship ☐ Other ☐ Address:

Telephone:
461
F21 Section 3 Regulations & Documents
Section 3 Monthly Report Instructions
Contractors are required to complete and submit a Section 3 Monthly Report each month throughout the life of the project. Information reported is cumulative and should run through the last day of the reporting each month. Example: A report period of May 2025 will document required information from the start of the project through the last day of May 2025.

Reports are due by the 10th day of each month. Example: If the report period is May 2025, the Section 3 Summary Report is due June 10, 2025.

Part I: Employment and Training
Column A: Contains various job categories. Professionals are defined as people who have special knowledge of an occupation (i.e. architects, engineers, surveyors, planners, and computer programmers). For construction positions, list each trade and provide data in Columns B through F for each trade where persons were employed. The category of “Other” includes occupations such as services workers.

Column B: Enter the number of all new hires (throughout the life of the project) for each category of workers identified in Column A. New hire refers to a person who is not on the award recipient’s or contractor’s payroll for employment at the time of the selection for project award. Each new hire must complete a Section 3 Worker Certification Form to determine Section 3 status. The form must be completed once and submitted with the Section 3 Monthly Report during the month that the new hire appears.

Column C: Enter the number of Section 3 new hires (throughout the life of the project) for each category of workers identified in Column A. Section 3 new hires refers to a Section 3 worker who is not on the award recipient’s or contractor’s payroll for employment at the time of selection for the contact award.

Column D: Enter the percentage of all the staff hours of new hires (Section 3 workers) in connection with this contract.

Column E: Enter the percentage of the total staff hours worked for Section 3 employees and trainees. Include staff hours for part-time and full-time positions.

Column F: Enter the number of Section 3 workers who were trained in connection with this contract award.

Part II: Contracts Awarded
462
F22 Section 3 Regulations & Documents
Construction Contracts
Item A: Enter the total labor hours committed in all construction contracts awarded.

You may enter “0” if applicable.

Item B: Enter the total labor hours committed in construction contracts on this project awarded to Section 3 businesses for each Section 3 business reported, a Section 3 Business Form must be submitted. The form only needs to be completed and submitted once. You may enter “0” if applicable.

Item C: Enter the percentage of the total labor hours committed by Section 3 businesses. You may enter “0” if applicable.

Item D: Enter the number of Section 3 businesses receiving construction contacts.

You may enter “0” if applicable.

Non-Construction Contracts
Item A: Enter the total labor hours committed in all non-construction contracts awarded. You may enter “0” if applicable.

Item B: Enter the total labor hours committed in non-construction contracts awarded to Section 3 businesses. You may enter “0” if applicable.

Item C: Enter the percentage of the total labor hours committed by non-contracts awarded to Section 3 businesses. You may enter “0” if applicable.

Item D: Enter the number of Section 3 businesses receiving non-construction contacts. You may enter “0” if applicable.

Part III: Summary
Indicate which Section 3 outreach activities the recipient and its contractors performed prior to hiring new or contracting for the project.
463
F23 Section 3 Regulations & Documents
EQUAL EMPLOYMENT OPPORTUNITY, CIVIL RIGHTS AND SECTION 3

CERTIFICATION
(To Be Completed By General Contractor And All Subcontractors and Submitted with the Bid)
PROJECT NAME:
____________________________________________________________________ The undersigned, having submitted a bid for construction of the above identified project, certifies that he/she shall:

1. Comply with Title VI of the Civil Rights Act of 1964 as amended; Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Sections 502 and 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; and the Age Discrimination Act of 1975 in that no person shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

2. Comply with Executive Orders 11375, 12086, and any other applicable federal anti-discrimination law in that no employee or applicant for employment shall be discriminated against because of race, color, creed, religion, ancestry, national origin, sex, sexual orientation, gender identity, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Will take action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the hiring, upgrading, demotion, transfer, recruitment or recruiting advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.

3. Comply with Executive Orders 11625 and 12432 Concerning Minority Business Enterprise and Executive Order 12138 Concerning Women's Business Enterprise to ensure to the maximum extent possible the inclusion of minorities and women and entities owned by minorities and women in all subcontracts pursuant to the above contract.

4. Comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170lu) and the implementing regulations in 24 CFR Part 75 which requires to the greatest extent feasible that the training, employment and other economic opportunities arising in connection with the above identified project be given to low and very-low income persons residing within the local community and that contracts be awarded to eligible business concerns which employ and/or are owned in substantial part by such low and very-low income persons residing within the service area or neighborhood of the project and/or Stanislaus County.
464
F24 Section 3 Regulations & Documents

5. Furnish and cause each of its own subcontractors to furnish all information and reports required hereunder and permit access to its books, records and accounts by Stanislaus County, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.

Contractor Name:

Signature/Title:

Federal I.D. or Social Security Number:

Date:

Intentionally Left Blank
465
F25 Section 3 Regulations & Documents
SECTION 3 BUSINESS CERTIFICATE OF ELIGIBILITY FOR

PREFERENCE
NOTE: This certificate must be signed by the person who will sign or has signed the Bid Form. This certificate will become a part of the contract documents. This form is a listing of Section 3 businesses that are planned to be a part of the project. If that is unknown or none apply, the form must still be completed.

Project Number: _______________________________ Bid Number: ____________ Project Name:
______________________________________________________________________ This is a formal certification that the below list of Section 3 Business(es) will be utilized on the above project and that such business(es) qualify for a Section 3 Business Preference and meet the requirements of a Section 3 Business as defined in the Bidding Procedures for this project.
a. Section 3 Business Name:
________________________________________________________________ Address:
________________________________________________________________ Description of Work:
________________________________________________________________ ________________________________________________________________ ________________________________________________________________ b. Section 3 Business Name:
________________________________________________________________ Address:
________________________________________________________________ Description of Work:
________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 466
F26 Section 3 Regulations & Documents
c. Section 3 Business Name:
________________________________________________________________ Address:
________________________________________________________________ Description of Work:
________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Total Hours of Proposed Work: ___________________________________________ The percentage of the total labor hours of all Section 3 Business work compared to the labor hour estimate: __________ %
• This certification is a material representation of the face upon which reliance may be placed if the proposed transaction is entered into. If it is later determined that an erroneous certification was rendered, in addition to other remedies available to the Federal Government, the U.S. Department of Housing and Urban Development and Stanislaus County may pursue available remedies.
• The undersigned contractor’s representative shall provide immediate written notice to the agency to which this proposal is submitted if at any time the undersigned learns that this certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

Contractor Name:
______________________________________________________
Signature/Title:
________________________________________________________ Date: __________________
467
F27 Section 3 Regulations & Documents
SECTION 3 MONTHLY REPORT

Company Name: Report Period (month/year):

Contact Name: Date Report Submitted:

Phone Number: Project Award Amount:

Project Name: Project Award Date:

Part I: Employment and Training
Job Category Number of
New Hires
Number of
Section 3
New Hires
% of Total
Number of Staff
Hours of Section
3 New Hires
% of Total Staff
Hours for
Section 3
Employees &
Number of Section 3
Trainees
Professionals
Technicians
Office/Clerical
Construction
by
Trade (list)
Trade:

Trade:

Other (list)
Totals
Final Report (check here): ☐ Signature: __________________________ 468
F28 Section 3 Regulations & Documents
Part II: Contracts Awarded Construction
Contracts
A. Total labor hours committed through all construction contracts on this project:
______________________
B. Total labor hours committed by Section 3 businesses: ______________________ C. Percentage of total labor hours performed by Section 3 businesses: ______ % Total number of Section 3 businesses receiving contracts: ______________________ Non-Construction Contracts
A. Total labor hours committed through all non-construction contracts:
______________________
B. Total labor hours committed by non-construction contracts awarded to Section 3 businesses:
_________
C. Percentage of labor hours performed by Section 3 businesses: ___________ % Total number of Section 3 businesses receiving contracts: ____________ Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, toward low- to very-low-income persons, particularly those who are recipients of government assistance for housing. Check all that apply. ☐ Attempted to recruit low-income residents through: local advertising media, signs prominently displayed at the project site, contacts with community organizations and public or private agencies operating within the County/City in which the Section 3 covered program or project is located or similar methods.
☐ Participated in a HUD program or other program which promotes the training or employment of Section 3 businesses.
☐ Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the definition of Section 3 business concerns. ☐ Coordinated with Youth Build programs administered in the metropolitan area in which Section 3 covered project is located.
☐ Other: __________________________________________________________ I hereby certify that all information contained above is accurate, complete, and current to the best of my knowledge. I understand that if I do not submit a complete Section 3 Report by the 10th of each month as indicated in the instructions, City and/or Stanislaus County reserve the right to withhold payment until a completed Section 3 Summary Report is submitted. _____________________________________
Signature of the preparer Date
______________________________________
Print Name
469
F29 Section 3 Regulations & Documents
STANISLAUS COUNTY SECTION 3 PROCEDURES
As a recipient of U.S. Department of Housing and Urban Development (HUD) CDBG, HOME and other federal funds governed by Section 3 of the Housing and Urban Development Act of 1968, Stanislaus County is dedicated to contracting with Section 3 contractors to the greatest extent possible. Subsequently, the County is also dedicated to the utilization of MBE/WBE concerns.

1. Section 3 language will be included within the contract between the subrecipient/municipal government and Stanislaus County.

2. Section 3 language will be included within the contract between the subrecipient/municipal government and the selected contractor.

SECTION 3 LANGUAGE FOR CONTRACTS

1. Contractor acknowledges and agrees to comply with Section 3 of the Housing and Urban Development Act of 1968, as found at 24 CFR Part 75.

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 75, 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 75 regulations.

C. The contractor agrees to send to each labor organizations 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 470
F30 Section 3 Regulations & Documents
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 parts 75, 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

75. 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 75.

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 75 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR Part 75.

F. Noncompliance with HUD’s regulations in 24 CFR Part 75 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 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 derogations of compliance with section 7(b).

PRE-CONSTRUCTION CONFERENCES
Section 3 requirements will be addressed at a pre-construction conference to further ensure that prospective contractors are aware of Section 3 and what it means to be a Section 3 contractor. The Pre-construction conference will cover the following:
471
F31 Section 3 Regulations & Documents
a. Certification of proposed contractors regarding Section 3 and segregated forms in the bid requirements for the contractor.
b. Explanation of Section 3 and the program requirements in the pre-construction meeting with the contractor.

SELF CERTIFICATION OF SECTION 3 CONTRACTORS
The County will use self-certification documentation to support whether or not a contractor qualifies as a Section 3 business concern.

This self-certification will used to identify whether a contractor is a Section 3 business concern and will be submitted by contractors asserting Section 3 status on a contractby-contract basis. When self-certifying, contractors should maintain records as documentation of any and all efforts made to ensure compliance with Section 3.

RECOMMENDATIONS TO CONTRACTORS ON MEETING SECTION 3

COMPLIANCE
The following are recommendations on how contractors can advertise and/or market to Section 3 residents on large scale construction projects and ensure compliance under Section 3.

1. Utilize the HUD Section 3 resources at:
https://www.hudexchange.info/programs/section-3/
The website includes a Section 3 resource hub that and resources for recipients of HUD funding, including a Guidebook, FAQs, training, and video series.

2. Prime and sub-contractors post any openings related to the contract on the job site.

3. Survey sub-contractors to determine Section 3 status/qualifications.

4. Insert Section 3 language in any contracts with sub-contractors (same wording as prime contractor’s amendment).

5. Provide a list of any new positions filled/hired to work on the project to-date and the County can help in determining if these new hires can be considered Section 3 Hires.
472
F32 Section 3 Regulations & Documents
TARGETED SECTION 3 WORKER SELF-CERTIFICATION FORM
A Section 3 Worker seeking the preference in training and employment provided by this part shall certify or submit evidence to the recipient contractor or subcontractor that the person is a Section 3 Worker, as defined in Section 24 CRF 75.

I________________________________________ (Print Name)
_____ My income for the previous year is below the income limit established by HUD.

A Section 3 business concern employs me.
_____ A YouthBuild participant
The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.

Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.

Household Income Guidelines
2025 HUD ANNUAL HOUSEHOLD INCOME LIMITS (effective May 1, 2025) Select the statement that represents your household size, and from that statement, check the appropriate household size and annual income level for your household, as verified by Federal Income Tax Returns, W2s, Paycheck Stubs, or other documents.

Household Size Low-to Very Low Income Non-Low
Income
My household size is one, and my
annual income was ☐ $51,050 or Less ☐ More than
$51,050
My household size is two, and my
annual income was ☐ $58,350 or Less ☐ More than
$58,350
My household size is three, and
my annual income was ☐ $65,650 or Less ☐ More than
$65,650
My household size is four, and my
annual income was ☐ $72,900 or Less ☐ More than
$72,900
My household size is five, and my
annual income was ☐ $78,750 or Less ☐ More than
$78,750
My household size is six, and my
annual income was ☐ $84,600 or Less ☐ More than
$84,600
My household size is seven, and
my annual income was ☐ $90,400 or Less ☐ More than
$90,400
My household size is eight, and my
annual income was ☐ $96,250 or Less ☐ More than
$96,250
I hereby certify that the information provided by me is true and correct, and I understand that any falsification of any of the information could subject me to disqualification from participation and punishment under the law.

Signature: Date:
473
F33 Section 3 Regulations & Documents
SECTION 3 WORKER SELF-CERTIFICATION FORM
A Section 3 Worker seeking the preference in training and employment provided by this part shall certify or submit evidence to the recipient contractor or subcontractor that the person is a Section 3 Worker, as defined in Section 24 CRF 75.

I________________________________________ (Print Name)
_____ My income for the previous year is below the income limit established by HUD.

A Section 3 business concern employs me.
_____ A YouthBuild participant
The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.

Signature: Date:
474
Exhibit G
Section 3 Outreach Efforts Form
Please Note: Outreach Efforts to Section 3 Businesses: Applies to Projects of $100,000 or More Documentation of efforts to engage Section 3 businesses must be provided with responses to RFPs and grant applications.

Project Name:

This form is to be completed by bidders or applicants.

Organization: _______________________________________________________________________ Submitted By: ______________________________________________________________________ The following businesses identified as Section 3 were contacted to determine capacity and availability to work on the above-listed project:

Company Name: