[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR135.40]

[Page 700]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
    CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 135--ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS--Table of Contents
 
Subpart B--Economic Opportunities for Section 3 Residents and Section 3 
                            Business Concerns
 
Sec. 135.40  Providing other economic opportunities.

    (a) General. In accordance with the findings of the Congress, as 
stated in section 3, that other economic opportunities offer an 
effective means of empowering low-income persons, a recipient is 
encouraged to undertake efforts to provide to low-income persons 
economic opportunities other than training, employment, and contract 
awards, in connection with section 3 covered assistance.
    (b) Other training and employment related opportunities. Other 
economic opportunities to train and employ section 3 residents include, 
but need not be limited to, use of ``upward mobility'', ``bridge'' and 
trainee positions to fill vacancies; hiring section 3 residents in 
management and maintenance positions within other housing developments; 
and hiring section 3 residents in part-time positions.
    (c) Other business related economic opportunities. (l) A recipient 
or contractor may provide economic opportunities to establish, stabilize 
or expand section 3 business concerns, including micro-enterprises. Such 
opportunities include, but are not limited to the formation of section 3 
joint ventures, financial support for affiliating with franchise 
development, use of labor only contracts for building trades, purchase 
of supplies and materials from housing authority resident-owned 
businesses, purchase of materials and supplies from PHA resident-owned 
businesses and use of procedures under 24 CFR part 963 regarding HA 
contracts to HA resident-owned businesses. A recipient or contractor may 
employ these methods directly or may provide incentives to non-section 3 
businesses to utilize such methods to provide other economic 
opportunities to low-income persons.
    (2) A section 3 joint venture means an association of business 
concerns, one of which qualifies as a section 3 business concern, formed 
by written joint venture agreement to engage in and carry out a specific 
business venture for which purpose the business concerns combine their 
efforts, resources, and skills for joint profit, but not necessarily on 
a continuing or permanent basis for conducting business generally, and 
for which the section 3 business concern:
    (i) Is responsible for a clearly defined portion of the work to be 
performed and holds management responsibilities in the joint venture; 
and
    (ii) Performs at least 25 percent of the work and is contractually 
entitled to compensation proportionate to its work.

Subpart C [Reserved]