As a HUD-funded Illinois corporation, CHA mandates that all contractors meet federal requirements to ensure workers, public housing residents and certain minority, women or disadvantaged business enterprises benefit from the use of federal funds. These requirements are outlined in the Davis Bacon Act, and CHA’s MBE/WBE/DBE and Section 3 policies.
Davis Bacon Act
The Davis Bacon Act (DBA) requires the payment of appropriate prevailing wage rates for all Federal construction projects in excess of $2,000. The Department of Labor (DOL) determines the customary wage. A copy of the wage decision is included in each bid package. The goal of the Davis-Bacon Act is to protect the statutory rights of construction workers by ensuring they are being paid appropriately for HUD or HUD "Related Acts" construction projects.
Failure to comply with Davis-Bacon regulation could lead to a breach of contract and debarment from further participation in HUD programs.
Click on the following link to login and enter your certified payroll reports for your CHA construction contract: https://prod.lcptracker.net/WebForms/login.aspx
The Chicago Housing Authority mandates that Minority, Women and Disadvantaged Business Enterprises have the maximum opportunity to participate in the execution of contracts financed in whole or in part with federal funds. Therefore, bidders, proposers or contractors and their subcontractors or suppliers must comply with CHA’s MBE/WBE/DBE Policy to ensure these business enterprises can benefit through every contract with the Authority.
The CHA does not certify MBE/WBE/DBE businesses, but will accept MBE/WBE/DBE certification from the following agencies or reciprocal agencies:
- City of Chicago
- Cook County
- Chicago Transit Authority (CTA)
- State Of Illinois Central Management Services (CMS)
- Small Business Administration (SBA)
- Chicago Minority Supplier Development Council (CMSDC)
- Illinois Department of Transportation (IDOT)
- Women's Business Development Center (WBDC)
The purpose of Section 3 is to make HUD-financed employment and economic opportunities available to low-income residents. Under CHA’s Section 3 program, there are multiple requirements for every contract. Hiring and Contracting are both required under Section 3, and vendors cannot choose between the two. Section 3 does not apply to Supply & Delivery contracts. CHA’s Section 3 requirements are outlined in HUD’s 24 CFR 135.
30% of all of new hires must be Section 3 employees. This includes CHA and low-income Chicago area residents. The Prime Contractor will be required to complete the Schedule B and outline all of the employees who are needed to complete this scope of work. Through the hiring chart on Schedule B, Compliance is able to determine how many Section 3 employees are needed for the contract. The 30% of all new hires covers new hires for the Prime Contractor and the Subcontractors. Contractors will be required to utilize CHA’s hiring system, which allows Section 3 individuals to apply for open positions on CHA contracts.
The Section 3 Opportunities system is replacing the Job Order Form process and will require Applicants to actively apply for jobs and Employers to interview and hire for their Section 3 positions based on a streamlined process in accordance with HUD’s Code of Federal Regulations (CFR). Section 3 Hiring Specialists will be responsible for initiating the job postings and approving the job profiles prior to the new jobs posting to the website available to the public.
You can register as an Employer or Applicant at section3jobs.thecha.org. For instructions on how to register and use the system, use these helpful guides:
Minimum Wage Requirements
Contractors must pay the specified minimum wage in this Requirement to those employees who are considered to be providing work to the CHA under the Contract. The specified minimum wage will apply primarily to contracts for services to the CHA, though some employees (or contractors) on supply contracts may be covered.
Prime Contractors are required to subcontract 10% of the total contract value for construction contracts and 3% of the total contract value for all other contracts to Section 3 Business Concerns. CHA does not certify Section 3 Business Concerns and it is the responsibility of the Prime Contractor to verify the information presented by the self-certified Section 3 Businesses. A checklist that would be a good guide as to what documents you should request is available through HUD’s section 3 website.
CHA’s Self-Certified Section 3 Business Concern Registry is available for your business to self-certify your company, if you meet the requirements outlined below. If you are looking to contract with a Section 3 Business Concern, you can search those self-certified businesses through the same website.
Section 3 Self-Certification Instructions
What is a Section 3 Business Concern?
A Section 3 Business concern is a business concern under HUD Regulations:
(1) 51 percent or more owned by section 3 residents; or
(2) Whose permanent, full-time employees include persons, at least 30 percent of whom are currently section 3 residents, or within three years of the date of first employment with the business concern were section 3 residents; or
(3) That provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2) in this definition of “section 3 business concern”.
Other Economic Opportunities
If for any reason, a business is unable to subcontract the full percentage requirement to a Section 3 Business Concern, CHA requires the vendor to propose other economic opportunities that would benefit the residents and future businesses. Examples include, but are not limited to teaming agreements, mentorship programs, internship programs, or anything creative that the Prime Contractor can propose.
Section 3 FAQs
Click on the following link to login to B2Gnow to approve and enter payments for your CHA contract and/or subcontract: https://cha.diversitycompliance.com/