|HUD No. 12-065
April 6, 2012
HUD, CITY OF LONG BEACH SIGN $3.7 MILLION AGREEMENT THAT WILL CREATE JOBS, CONTRACTING OPPORTUNITIES
WASHINGTON - The U.S. Department of Housing and Urban Development announced today that it has signed a $3.7 million agreement with the city of Long Beach, CA, that will help to create job opportunities for low-income residents and contracting opportunities for the businesses that hire them. The agreement was reached after a HUD review determined that the city's Section 3 implementation plan was inadequate.
Section 3 of the Housing and Urban Development Act of 1968 promotes employment, training, and contracting opportunities to low-income residents who live in communities where HUD funds are spent, and the businesses that hire them. As a result, Section 3 promotes self-sufficiency for low-income persons, fosters the creation of small businesses, and helps build strong local economies.
"Job creation is essential to boosting local economies and helping families survive today's tough economic times," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "This agreement goes a long way toward helping the city of Long Beach create much needed jobs for its residents and contracting opportunities for area businesses."
Under the terms of the Voluntary Compliance Agreement (VCA), the city of Long Beach will:
- Provide $3.7 million in future contracting opportunities to Section 3 businesses located in Long Beach;
- Use Section 3 businesses for projects where the use of Section 3 contractors is not typically required, such as the city's $29 million Airport Terminal Project;
- Develop a plan describing how smaller contracts worth less than $100,000 and projects worth less than $200,000 will utilize Section 3 businesses; and
- Implement a Section 3 business incentive program to encourage contractors to use Section 3 businesses for future construction projects, until the $3.7 million is spent.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov. You can also follow HUD on twitter @HUDgov, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.