NSP FAQ
Q

When does Section 3 apply for NSP projects?

Date Published: October 2012

Print ShareThis

A

Two monetary thresholds apply to Section 3:

  • A grantee or subrecipient invests more than $200,000 in NSP funds (or NSP funds in combination with other Section 3 covered assistance, such as Community Development Block Grant funds or HOME funds) for a NSP demolition, construction or rehabilitation project; and
  • A contractor or subcontractor is awarded a contract for work arising in connection with a NSP new construction, rehabilitation or demolition project in an amount that exceeds $100,000.

If the NSP investment (alone or in combination with other Section 3 covered assistance) in a demolition, construction or rehabilitation project exceeds $200,000 but no single contractor is awarded more than $100,000, then the Section 3 requirements apply to the training, employment, and contracting activities of the grantee or subrecipient but not to those of the contractor. This means the hiring and contracting by the grantee or subrecipient that is related to work arising in connection with the NSP new construction, rehabilitation or demolition project would be subject to the Section 3 regulations.
 
Once it is determined that Section 3 applies to a project, the requirements apply to all contracts for work arising in connection with NSP construction, rehabilitation or demolition projects over $100,000, including those that are not funded with NSP funds.


Tags: NSP Economic Opportunities under Section 3

FAQ ID:

896