Formal Solicitations ($60,000 & Up) – National Association of Housing and Redevelopment Officials (NAHRO) EconomicEngine
See ‘Vendor Letter – How to Register with EconomicEngine’ below
AHA is bound by HUD regulations, New Mexico State laws, and other local requirements governing public purchasing. Thus, AHA procurement staff operates in accordance within the AHA procurement policy which has been created to comply within the guidelines of the appropriate purchasing rules, laws, and regulations for all AHA business transactions.
Micro-purchase procedure below $10,000, only one quotation needs to be solicited if the price received is considered reasonable. Such purchases must be distributed equitably among qualified sources.
Small purchase procedure over $10,000, but not exceeding $60,000. No less than three offerors shall be solicited to submit price quotations. Award shall be made to the offeror providing the lowest acceptable quotation, unless justified in writing based on price and other specified factors.
What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 was enacted to ensure that employment and economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, be directed to low- and very low-income persons, residing in communities where financial assistance is expended and to businesses that controlled by or employ very low and low income persons. By directing HUD-funded economic opportunities to residents and businesses in the community where the funds are expended, the goal of Section 3 is to have the dual benefit of creating new or rehabilitated housing and facilities while providing opportunities for employment and training for the residents of these communities.
On September 29, 2020, HUD issued Federal Register Notice FR-6085-F-03 Enhancing and Streamlining the Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses, or the Section 3 Final Rule 24 CFR Part 75. The final rule made the following substantial changes to the Section 3 requirements:
Eliminated the new hire compliance standard in favor of an hours worked standard;
Eliminated the dollar value compliance standard for contracting with Section 3 businesses;
Renamed Section 3 residents to 1) Section 3 workers and 2) Targeted Section 3 workers, and specified certification criteria for each type of worker;
Redefined a Section 3 business;
Separate reporting requirements are in place for public housing assistance;
Increased the reporting threshold for Housing and Community Development Programs, Section 3 contracts is increased to $200,000 on federal financial assistance funding sources;
Section 3 Final Rule Compliance Timeline and Reporting
Compliance to the final rule is determined by the date that a commitment of funds is made to the project. On August 24, 2021, HUD published a Final Section 3 Rule (Notice CPD 2021-09) which established the following:
On or After 11/30/2020 but before 7/1/2021
On or After 7/1/2021
24 CFR part 135
24 CFR part 75
24 CFR part 75
Grantee must retain documentation demonstrating compliance with interim rule in project file.
Grantees must retain documentation demonstrating compliance with Final Rule in project file. Grantee will report in IDIS or DRGR for open activities starting July 1, 2021. If the IDIS or DRGR activity was set up prior to the system update, grantees will need to modify the IDIS or DRGR activity to generate the appropriate Section 3 compliance screen(s).
Grantee will report compliance data in IDIS or DRGR within the applicable reporting cycles beginning on or after July 1, 2021.