[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR135.40]



[Page 732-733]

 

                 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



[[Page 733]]



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]